NH Investment & Securities, IB Competitiveness Remains Strong... Attractive High Dividend Yield

[Asia Economy Reporter Park So-yeon] Kyobo Securities maintained a buy rating on NH Investment & Securities, stating that "the competitiveness of the IB division still stands out," but lowered the target price to 13,000 KRW.

On the 15th, according to FN Guide, Kyobo Securities revealed this in a recent report on NH Investment & Securities.

NH Investment & Securities' net profit for Q2 2022 (consolidated basis) was 119.6 billion KRW, a 16.9% increase compared to the previous quarter.

However, it decreased by 55.8% compared to the same period last year. The increase in profit compared to the previous quarter was analyzed to be due to gains related to IB, an increase in interest income and expenses related to WM, and a decrease in selling and administrative expenses.

In Q2, trust fees revenue was 99.3 billion KRW, down 11.1% and 41.6% compared to the previous quarter and the same period last year, respectively. This was due to a decrease in trading volume caused by the deterioration of domestic and international stock markets.

Financial product sales revenue also decreased by 6.6% and 6.2% compared to the previous quarter and the same period last year, respectively, recording 24.1 billion KRW. IB-related revenue remained solid, achieving 110 billion KRW, up 27% and 41% compared to the previous quarter and the same period last year, respectively.

Operating and interest income recorded 65.7 billion KRW, increasing by 7.05% and 0.6% compared to the previous quarter and the same period last year, respectively, reaching 69.2 billion KRW. Selling and administrative expenses in Q2 were 214.4 billion KRW, down 3.6% and 18% compared to the previous quarter and the same period last year, respectively.

Researcher Kim Ji-young of Kyobo Securities evaluated, "The IB division, which is a strength, is showing steady performance improvement and growth, and efforts to strengthen competitiveness related to WM are showing visible results," adding, "The high dividend yield compared to large securities firms is also attractive."

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