Hantoo Securities Reports Record High Consolidated Net Profit of 1.4 Trillion Won Last Year
[Asia Economy Reporter Ji Yeon-jin] Korea Investment & Securities, a subsidiary of Korea Financial Group (President Jung Il-moon), announced on the 10th through a preliminary earnings disclosure that it achieved a record high net profit of 1.4474 trillion KRW on a consolidated basis last year. This represents a 104.4% increase compared to the previous year. Operating profit also rose by 69.4% year-on-year to 1.2889 trillion KRW.
During the same period, equity capital increased by 1.3373 trillion KRW to 7.151 trillion KRW compared to the previous year. The consolidated annualized return on equity (ROE) recorded 22.3%, surpassing 20% for the first time among major domestic securities firms. ROE is a key profitability indicator that shows how much profit was generated using equity capital. The operating net capital ratio (NCR), which indicates the financial soundness of Korea Investment & Securities, is also expected to approach 2400%.
This performance was driven by significant revenue growth across corporate finance (IB) sectors, including initial public offerings (IPO), paid-in capital increases, and corporate bond issuance. The brokerage (BK) division also posted solid results through the activation of overseas stock trading and strengthening of non-face-to-face channel services. Although a one-time cost occurred in the second quarter of last year due to full compensation for private equity funds, the inclusion of equity-method gains from the KakaoBank IPO in the third quarter contributed to the increase in earnings.
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A Korea Investment & Securities official stated, “Despite unfavorable market conditions due to the COVID-19 pandemic, we maintained industry-leading performance thanks to a diversified revenue structure, synergy creation among business divisions, and advanced risk management. We plan to continue generating results in digital and overseas IB sectors while focusing on enhancing competitiveness through system improvements.”
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