KB Securities Reports Q3 Net Profit of 160.1 Billion Won, Down 7.5% Year-on-Year

On October 30, KB Securities announced in a regulatory filing that its consolidated net profit for the third quarter of this year was provisionally tallied at 160.1 billion won, a decrease of 7.56% compared to the same period last year. Cumulative net profit through the third quarter stood at 502.4 billion won, down 9.08%. During the same period, revenue increased by 10.86% to 8.9513 trillion won, while operating profit declined by 9.17% to 667.919 billion won.

KB Securities explained, "Despite growth in pre-provision operating profit driven by strong performance across all business divisions, including wealth management (WM), investment banking (IB), and sales, net profit saw a slight decrease year-on-year due to the proactive recognition of provisions for real estate project financing (PF) assets to enhance asset quality." The company added, "Compared to the fourth quarter of last year, when significant non-recurring losses were recorded, non-recurring losses are expected to be minimized in the fourth quarter of this year, so annual results are projected to improve year-on-year."

Growth in the WM business continued, supported by the expansion of customer assets-total client assets surpassed 200 trillion won-through the supply of customer value-oriented WM products and meeting demand for brokerage (BK) services.

The investment banking (IB) division led the market with stable performance centered on corporate finance, despite ongoing market volatility caused by increasing domestic and global uncertainty risks. The debt capital market (DCM), leveraging its competitive edge, achieved record-high cumulative volume and the highest number of lead mandates in the third quarter. In the equity capital market (ECM), KB Securities completed a total of 11 listings in the third quarter, including the successful mega-IPO of LG CNS, and maintained its top position in IPOs and third place overall in ECM league tables by leading nine rights offerings.

The acquisition finance division maintained its market-leading position based on nine high-quality domestic and overseas refinancing deals. In mergers and acquisitions (M&A), a future growth engine, KB Securities retained its top-tier status among domestic securities firms by expanding into areas such as cross-border transactions. In addition, the company continued to strengthen its business in corporate governance and advisory services.

The sales division solidified its dominance in the institutional sales market and sustained growth momentum in prime brokerage services (PBS). By enhancing both active and passive entrusted sales and trading competitiveness, KB Securities achieved an overwhelming number one market share in domestic institutional equity entrusted and arbitrage trading.

The trading division expanded its operating profit through efficient portfolio management amid stock market volatility and diversified its profit base through the continuous development of revenue models.

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