Meritz Securities Achieves Operating Profit of 1.0925 Trillion KRW Last Year, Joins '1 Trillion KRW Club'

[Asia Economy Reporter Jang Hyowon] Meritz Securities (CEO Choi Heemun) announced that its consolidated operating profit for last year reached 1.0925 trillion KRW, a 15.1% increase compared to the same period last year, achieving an annual operating profit of 1 trillion KRW for the first time since its founding. Pre-tax profit and net income were 1.1332 trillion KRW and 828.1 billion KRW, respectively, increasing by 8.2% and 5.8% compared to the same period.

Last year, consolidated operating profit, pre-tax profit, and net income all achieved the highest performance since the company's establishment, with all three sectors setting record highs for six consecutive years from 2017 to 2022.

Despite worsening domestic and international economic conditions such as a sharp rise in market interest rates and a decrease in stock market trading volume last year, excellent results were achieved across all business sectors including Corporate Finance (IB), Financial Income, and Sales & Trading. In particular, even with the real estate market in recession, the Corporate Finance (IB) division recorded strong performance through thorough risk management and high-quality investments, while the Sales & Trading division achieved outstanding profits by proactively managing positions in anticipation of rising bond yields and building an optimized portfolio.

In the fourth quarter of last year, operating profit and pre-tax profit reached 269.1 billion KRW and 246.2 billion KRW, respectively, with net income recorded at 169.8 billion KRW. From the first quarter of 2018 to the fourth quarter of last year, the company has consistently generated stable profits by recording net income exceeding 100 billion KRW for 20 consecutive quarters, also demonstrating its risk management capabilities.

As of the end of the fourth quarter last year, shareholders' equity stood at 5.6919 trillion KRW, an increase of 357.5 billion KRW compared to the previous year, and the consolidated annualized return on equity (ROE) reached 15.0%. Along with rapid growth in equity, the company has maintained double-digit ROE for nine consecutive years since 2014, recording industry-leading profitability. Meanwhile, the Net Capital Ratio (NCR), an indicator of financial soundness, rose to 1684% at the end of last year, up 257 percentage points from the fourth quarter of 2021, and the leverage ratio also improved, decreasing by 22 percentage points.

A Meritz Securities official stated, “Despite the challenging business environment with ongoing uncertainties across all business sectors last year, it was a year that demonstrated differentiated profit-generating capabilities and excellent crisis management skills,” adding, “In 2023, we will overcome crisis situations through thorough risk management and take a step forward by expanding group synergies.”