[Asia Economy Reporter Koh Hyung-kwang] Korea Investment & Securities achieved its highest-ever second-quarter performance as commission income from the brokerage (BK) division significantly increased.
According to industry sources on the 15th, Korea Investment & Securities announced the previous day that its second-quarter revenue (operating income) reached 5.3538 trillion KRW, a 79% increase compared to the same period last year. Operating profit rose 49% to 363.6 billion KRW, and net profit recorded 295.8 billion KRW, up 56.2%. This is the best quarterly performance on record.
Looking at the cumulative results for the first half of this year, revenue was 9.7467 trillion KRW, up 65.8% from the same period last year. However, operating profit was 172.2 billion KRW, down 66.8%, due to a loss recorded in the first quarter.
Korea Investment & Securities explained that as major global stock markets recovered in the second quarter, most of the valuation losses from derivatives and overseas funds, which were the main causes of the first-quarter deficit, were recovered. In addition, commission income from the brokerage (BK) division surged as domestic stock investors increased significantly.
The investment banking (IB) division also drove performance by achieving results in real estate project financing (PF) and alternative investments. A Korea Investment & Securities official said, "To prepare for uncertain market conditions caused by the prolonged COVID-19 situation, we will further enhance our operational processes and risk management functions."
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