Korea Investment & Securities posted its best-ever business performance last year.
In an electronic filing on the company’s provisional business results issued on Feb. 10, Korea Investment & Securities, a subsidiary of Korea Investment Holdings, said it chalked up 1,447.4 billion won in net profit last year on a consolidated basis.
It was the first time Korea Investment & Securities reported annual net profit of more than 1 trillion won.
The net profit figure represents a 104.4 percent jump over the previous year. Korea Investment & Securities achieved the industry’s best-ever business performance by beating Mirae Asset Securities, which chalked up 1,187.2 billion won in net profit in the same period.
Korea Investment & Securities saw sales decline 12.7 percent year-on-year to 13,930.5 billion won in sales, but posted 1,288.9 billion won in operating profit, a 69.4 percent year-on-year surge.
The company said Korea Investment & Securities’ business performance was owed to a jump in profit on the back of the good results in the overall investment banking sector, such as IPOs, rights issuances and bond issuances.
Korea Investment & Securities made a solid achievement in the commissioned sales sector on the back of invigorated foreign stock transactions and souped-up non-face-to-face services, the company added.
A Korea Investment & Securities official said the company saw one-time costs, caused by fully compensating of a private equity fund, but profit improve on the back of equity method income related to the initial public offering of KakaoBank.
Korea Investment & Securities saw net worth surge to 7,151 billion won last year, a jump of 1,337.3 billion won over the previous year.
The company saw ROE stand at 22.3 percent, becoming the first Korean securities company to surpass the 20 percent territory. The return on equity (ROE) is a measure of the profitability of a business in relation to the equity.
A Korea Investment & Securities official said the company is predicted to see its net operating profit capital ratio (NCR) approach 2,400 percent.
NCR is a measure of indicating each securities company’s financial soundness. The official said Korea Investment & Securities has secured the industry’s best-ever profitability and stability, and the company have proved to have grown both outward and in substance.
The official said the company had managed to make the industry’s best-ever achievement on the back of diversifying profit portfolio, creating synergetic effects among businesses and refined risk management, despite bad management conditions, caused by the COVID-19 pandemic.
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