Daol Investment & Securities Reports Record-High Q1 Earnings Driven by IB Division

[Asia Economy Reporter Kwon Jae-hee] Daol Investment & Securities recorded an operating profit of 67.5 billion KRW in the first quarter of this year, achieving the highest quarterly operating profit since its transition to a securities company in 2008. This double-digit growth was achieved amid global uncertainties such as interest rate hikes and inflation, with the corporate finance (IB) division driving the performance.

On the 16th, Daol Investment & Securities announced that its operating profit and net profit for the first quarter were 67.5 billion KRW and 52.3 billion KRW, respectively, marking increases of 48.6% and 14.5% compared to the same period last year. Following three consecutive years of record-high profits last year, the company posted strong results in the first quarter of this year as well. The first quarter operating profit exceeded the full-year operating profit of 66.5 billion KRW in 2020.

The surprise performance was led by the IB division. The IB division’s operating profit in the first quarter increased by 56% year-on-year.

Affiliated companies also maintained solid results. Daol Savings Bank, formerly known as Eugene Savings Bank, recorded an operating profit of 25 billion KRW and a net profit of 18.8 billion KRW in the first quarter. Loan balances grew by 276.4 billion KRW compared to the previous year, reaching a scale of 3.5905 trillion KRW.

Daol Asset Management’s cumulative management fee revenue reached 8.1 billion KRW, an increase of 2.5 billion KRW compared to the same period last year. Thanks to strong sales of high-fee products, the average management fee rate also rose by 1.2 bps to 19 bps, indicating continued revenue growth in the future. Assets under management (AUM) grew by 2% compared to the end of last year, reaching 15.6 trillion KRW.

A Daol Investment & Securities official stated, "Thorough risk management in preparation for changes in the market environment was effective in defending our performance," adding, "Our strategy is to build a stable profit structure that is not shaken by market variables and to continue steady growth."

Meanwhile, on May 2, Korea Ratings assigned Daol Investment & Securities a corporate credit rating of A0 (stable) through its credit rating announcement.

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