NH Investment & Securities Achieves First Operating Profit of '1 Trillion'... Overwhelming IB Competitiveness

[Asia Economy Reporter Lee Seon-ae] NH Investment & Securities achieved a cumulative operating profit of 1 trillion KRW in just three quarters, becoming the first securities firm this year to join the ‘1 Trillion Club.’ Despite the challenging financial market environment, the company drove this 1 trillion KRW operating profit performance based on its overwhelming investment banking (IB) business competitiveness.

According to NH Investment & Securities on the 23rd, the provisional operating profit and net profit on a consolidated basis for the third quarter decreased by 17.2% and 10.4%, respectively, recording 292.7 billion KRW and 214.7 billion KRW. Revenue increased by 44.8% compared to the same period last year, reaching 2.4995 trillion KRW.

The cumulative operating profit for the third quarter reached 1.0601 trillion KRW, achieving the 1 trillion KRW mark within three quarters. Considering that last year’s annual operating profit was in the 700 billion KRW range, this represents a solid performance.

An NH Investment & Securities official explained, “Despite the recent decrease in market trading volume and increased volatility, we realized favorable results in the third quarter. In particular, net profit exceeded market expectations (202.6 billion KRW) by 5.6%.”

They added, “In the third quarter, the IB division successfully executed major deals such as large IPOs for Krafton, Lotte Rental, and NH SPAC No.20, as well as corporate bond underwriting for companies like Hanon Systems and SK, driving the performance.”

According to NH Investment & Securities, the wealth management (WM) division’s third-quarter performance grew due to increased demand for customized asset management, which boosted financial product sales commission income. Additionally, the expansion of digital channel customer assets and overseas stock assets contributed to the performance increase.

The asset management division recorded solid results through an active management strategy despite increased market volatility and rising interest rates.

An NH Investment & Securities official stated, “Going forward, we plan to lead the industry by leveraging synergies with NH Nonghyup Financial Group and our overwhelming IB competitiveness. We will continue to build a stable and balanced business portfolio.”