Meritz Securities Q3 Net Profit 191.2 Billion KRW... 17% Increase YoY

[Asia Economy Reporter Ji Yeon-jin] Meritz Securities (CEO Choi Hee-moon) announced on the 8th that its third-quarter consolidated net profit reached 191.2 billion KRW, a 17.7% increase compared to the same period last year. During this period, operating profit and pre-tax profit rose by 15.4% and 17.4% to 240.2 billion KRW and 262.8 billion KRW, respectively.

The cumulative net profit up to the end of September this year was 593.2 billion KRW, marking a 41.0% increase compared to the same period last year and surpassing last year's net profit of 565.1 billion KRW within just three quarters. Cumulative operating profit and pre-tax profit were 764.7 billion KRW and 813.2 billion KRW, up 33.1% and 41.7% year-on-year, respectively.

The consolidated annualized return on equity (ROE) recorded 16.0%, rising 3.0 percentage points from 13.0% in the same period last year. At the end of the third quarter, equity capital stood at 5.0786 trillion KRW, nearly ten times the 591.2 billion KRW equity capital when CEO Choi Hee-moon took office in 2010. Despite rapid growth in equity capital, the company has maintained industry-leading profitability by recording double-digit ROE for eight consecutive years since 2014.

In addition to profitability, the company actively manages contingent liabilities at appropriate levels through proactive sell-downs from a risk management perspective. At the end of the third quarter, the ratio of contingent liabilities to equity capital was 96%, down 4 percentage points from the previous quarter. The 'real estate debt guarantee ratio to equity capital,' regulated by financial authorities to be maintained below 100%, was also stably maintained at 62%, well below the regulatory threshold.

A company official stated, “Through company-wide efforts, we discovered differentiated business opportunities in corporate finance (IB), Sales & Trading, and retail sectors, achieving results surpassing the previous quarter.” He added, “Given the recent significant expansion of uncertainties in domestic and international financial markets, we will flexibly respond to changes in the market environment by efficiently utilizing outstanding personnel and financial resources during the remaining period.”