"Industry's Highest Profitability" Meritz Securities Achieves Record-Breaking Q1 Performance

Q1 Net Profit of 282.4 Billion KRW... 17 Consecutive Quarters with Over 100 Billion KRW Recorded

[Asia Economy Reporter Lee Seon-ae] Meritz Securities has posted its highest quarterly earnings ever in the first quarter. Meritz Securities announced on the 2nd that its consolidated net profit for the first quarter reached 282.4 billion KRW, a 33.4% increase compared to the same period last year.

Meritz Securities has recorded net profits exceeding 100 billion KRW for 17 consecutive quarters since the first quarter of 2018. During this period, operating profit and pre-tax profit were 376.9 billion KRW and 380.9 billion KRW respectively, up 32.4% and 32.0% compared to the same period last year. Operating profit, pre-tax profit, and net profit all set quarterly records, with operating and pre-tax profits surpassing 300 billion KRW for the first time in the company's history on a quarterly basis.

Despite financial market uncertainties in the first quarter, the company achieved balanced performance in corporate finance (IB) and financial income segments. In particular, the trading division maintained a positive trend through position management in anticipation of rising bond yields and drove record-high earnings with investment gains from unlisted companies.

At the end of the first quarter, shareholders' equity stood at 5.3984 trillion KRW, an increase of 634 billion KRW compared to the same period last year. The consolidated annualized return on equity (ROE) was 21.0%, improving by 3.3 percentage points year-on-year, maintaining the industry's highest level of profitability.

Meritz Securities has also been consistently implementing its shareholder return policy. Last year, it signed and completed a trust contract for acquiring treasury shares worth 340 billion KRW based on share cancellation, and in March this year, it decided to purchase treasury shares worth 100 billion KRW. Regarding the 100 billion KRW worth of treasury shares purchased in March last year, the company also announced the cancellation of these shares in March this year.

A Meritz Securities official stated, "Achieving record earnings in an unfavorable environment is very meaningful, but we are closely monitoring the ongoing economic crisis characterized by high inflation, high exchange rates, and high interest rates," adding, "We will reorganize all operations from zero base and establish a stable growth foundation through thorough stress testing and investment asset inspections."

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