Hi Investment & Securities Reports Cumulative Operating Profit of 176.1 Billion KRW in Q3, Exceeding Last Year's Performance

[Asia Economy Reporter Park Jihwan] Hi Investment & Securities announced on the 29th through the DGB Financial Group IR held on the 28th that it achieved a cumulative operating profit of 176.1 billion KRW on a consolidated basis for the third quarter. This is the highest cumulative performance ever, representing a 68.0% increase compared to the same period last year.

The operating profit for the third quarter was 59.9 billion KRW, a 6.8% decrease from the previous quarter, but it recorded the second-highest quarterly performance in history. On an annual cumulative basis, it exceeded last year's operating profit and achieved business targets ahead of schedule.

Net profit for the period was 130.1 billion KRW, up 51.5% year-on-year, and the key management indicator Return on Equity (ROE) maintained high profitability at 15.5%.

The profit contribution within the DGB Group was 26.4%, up 1.4 percentage points compared to the same period last year, leading the group's non-banking sector performance. On a separate basis, cumulative operating profit was 177.3 billion KRW, and net profit was 129.7 billion KRW, increasing by 69.8% and 60.9% respectively compared to the same period last year.

This strong performance is attributed to the continuous growth of the investment banking (IB) and project financing (PF) businesses, which are the company's greatest strengths, along with favorable operations across all business sectors. The net operating income from the IB/PF business was 200.9 billion KRW, a 30.1% increase year-on-year. The real estate finance sector continued its revenue growth due to sustained business momentum. In the IB sector, tasks such as leading public REITs underwriting were carried out.

They are also focusing on contingent liability management through active sell-downs. The contingent liability ratio to equity capital increased by 5.7 percentage points from the previous quarter to 109.4%, but the financial authorities' regulatory standard to maintain the real estate debt guarantee ratio below 100% of equity capital is being maintained at 72.7%.

Major transactions include the Gayang automobile sales complex PF, public offerings of Hanarich Up No. 2 and No. 3 REITs, lead underwriting for the acquisition financing of Seokgyeong Medical Foundation's Hand Hospital, and participation in public bond underwriting groups for SK Rent-a-Car and Hyundai Samho Heavy Industries.

The net operating income from the asset management business was 69.5 billion KRW, a 127.1% increase year-on-year. The revenue scale of the asset management business expanded significantly due to increased valuation gains in the over-the-counter derivatives operation sector and proprietary investment (PI) asset management sector.

The net operating income from the brokerage business recorded 65.0 billion KRW. Although it increased by 6.4% compared to the same period last year, it decreased by 14.3% from the previous quarter in the third quarter due to a contraction in stock market trading volume.

Kim Kyung-kyu, CEO of Hi Investment & Securities, stated, "Thanks to the favorable performance across all business divisions, we have achieved our annual business targets ahead of schedule and are renewing record-high results. To maintain continuous growth, we plan to proceed with active risk management along with opening the third complex branch in the Seoul area and listing Hi SPAC No. 7."

This content was produced with the assistance of AI translation services.