IB Division Records Over 20 Billion KRW in Net Operating Income for 10 Consecutive Quarters
[Asia Economy Reporter Kum Boryeong] Hyundai Motor Securities continued its strong performance in the second quarter following the first quarter, achieving the highest first-half performance in its history.
Hyundai Motor Securities announced on the 23rd that its consolidated operating profit for the second quarter was 40.9 billion KRW, a 1.2% decrease compared to the previous year. Net profit for the same period was 28.6 billion KRW, down 5.9%.
A Hyundai Motor Securities official explained, "Considering that the second quarter of last year included a one-time gain from the sale of the Dongtan Center Point Mall, which had been held for several years, this time we achieved the highest quarterly performance ever."
Looking only at the first-half results, it recorded the largest scale since its inception. Consolidated operating profit for the first half of this year was 74 billion KRW, and net profit was 53.2 billion KRW, increasing by 6.5% and 4.8% respectively compared to the previous year.
Stable portfolio-based management and commission income contributed to the record-high performance. The most notable sectors were the sharp increase in profits from bonds and retail divisions.
The bond business showed excellent results across all areas including management and brokerage. In particular, the management sector, which utilized the decline in bond interest rates, saw net profit surge by more than 200% compared to the same period last year.
The retail division increased commission trading profits by expanding market share amid a rise in transaction volume due to a surge in direct investments. Hyundai Motor Securities strengthened its digital platform by revitalizing non-face-to-face trading through the renewal of the mobile trading system (MTS) 'The H Mobile' last year.
The investment banking (IB) division, which has faced difficulties such as contraction in the overseas alternative investment market due to COVID-19 and a decrease in residential office market deals, also showed stable performance. It completed another big deal project by participating from the early stages in the approximately 180 billion KRW Guro Knowledge Center project financing (PF) development. The IB division recorded net operating income exceeding 20 billion KRW for 10 consecutive quarters.
A Hyundai Motor Securities official said, "In the second half, we plan to focus on strengthening financial expertise centered on thorough risk management, while striving for stable and sustainable growth based on balanced growth through diversification of profits."
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