Hanyang Securities, Im Jaetaek's Strategy Works... Strong Q1 Net Profit of 13.4 Billion Won

Strong Performance Driven by Bonds, Asset Management, and IB
ROE Recorded at 10.84%

Hanyang Securities reported increases in both operating profit and net income for the first quarter compared to last year.

On the 16th, Hanyang Securities announced that its first-quarter net income rose 23.3% year-on-year to 13.4 billion KRW. Operating profit increased by 22.1% to 19.6 billion KRW, while revenue decreased by 41.8% to 192.9 billion KRW. The annualized return on equity (ROE) stood at 10.84%.

The strong performance was driven by three divisions: bonds, asset management, and corporate finance (IB). The bond division enhanced profitability by efficiently responding to interest rate volatility. The asset management division generated returns through strategies suited to market conditions. In the IB division, demand for corporate bond issuance increased, and by actively targeting niche markets such as asset-backed securities, the FICC Sales Center, responsible for ECM and DCM corporate finance, achieved excellent results.

Performance improvement is also expected in the real estate project financing (PF) division. CEO Lim Jae-taek chose to strengthen the resilience of real estate PF rather than downsizing earlier this year. The company maintained zero contingent liabilities and actively recruited top PF talent in the industry. A Hanyang Securities official explained, "In the second quarter, we aim for a performance turnaround in the real estate PF division by thoroughly managing risks while maintaining a solid triangular alliance of bonds, asset management, and IB."

Meanwhile, Hanyang Securities’ equity capital increased by 84% from 269.9 billion KRW at the time of CEO Lim’s appointment in 2018 to 496.4 billion KRW in the first quarter of this year. During the same period, ROE rose more than sixfold from 1.7% to 10.84%.

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