Korea Investment & Securities' Q3 Operating Profit Falls 58% YoY to 348.7 Billion Won
Korea Investment & Securities' operating profit in the third quarter fell by nearly 60% from a year earlier. However, buoyed by strong first-half results, its cumulative operating profit for the year to date increased by 27%.
Korea Investment & Securities said on November 5 that its consolidated operating profit for the third quarter was tentatively tallied at 348.7 billion won, down 58.3% from the same period a year earlier. Revenue for the same period rose 87.4% to 10.5919 trillion won. Compared with the previous quarter, operating profit fell 71.19% and revenue declined 17.86%. Net profit in the third quarter was tallied at 281.8 billion won, down 56.7%.
This is attributed to the fallout from a sharp stock market slump in the second half of the year. By business segment, brokerage (BK) commission revenue fell 36.5% from the previous quarter due to the third-quarter stock market downturn. Investment banking (IB) revenue increased 12.0% from the previous quarter, but profitability in the trading segment temporarily weakened as a decline in interest margins caused by interest rate fluctuations coincided with valuation losses on foreign-currency assets. In the wealth management (WM) segment, the balance of financial products held by individual clients stood at 108.5 trillion won at the end of the third quarter, up 3.5 trillion won from the end of the second quarter.
Korea Investment & Securities said, "As global macroeconomic volatility has increased in the second half of the year, we are focusing on identifying new sources of revenue and managing risk." However, cumulative operating profit for the first three quarters of this year rose 27.0% from the same period last year to 2.5188 trillion won.
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Korea Investment Holdings, the parent company of Korea Investment & Securities, disclosed that its consolidated operating profit for the third quarter of this year fell 64.6% from a year earlier to 300.4 billion won. Revenue was tentatively tallied at 11.1801 trillion won, up 85.7%, while net profit fell 58.2% to 281.8 billion won.
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