NH Investment & Securities Announces Value-Up Plan Targeting 12% ROE and 1x PBR

NH Investment & Securities announced on the 19th that it will pursue a corporate value enhancement plan aiming to achieve a "sustainable return on equity (ROE) of 12% and a predictable shareholder return policy to reach a price-to-book ratio (PBR) of 1."

The specific execution plan is to achieve the target ROE of 12% by meeting the market-required cost of equity (COE at around 10%) through core businesses (IB, WM, and Asset Management) and adding profits from new and existing businesses (wholesale, OCIO, subsidiaries, etc.). Additionally, it plans to establish a high-growth system that exceeds market growth through linkage among core business sectors.

To this end, the Corporate Finance (IB) division will maintain market competitiveness in traditional corporate finance, pioneer high value-added advisory service markets such as package deals (acquisition finance + tender offers), and strengthen its role as a service provider covering the entire lifecycle of real estate project financing (PF). The Wealth Management (WM) division plans to leverage this IB competitiveness to expand its ultra-high-net-worth (UHNW) client base, expand new customers through digital platforms, and secure competitiveness in growth businesses such as overseas stocks. The Asset Management division will expand assets under management based on WM growth and maintain stable profitability.

Moreover, NH Investment & Securities guarantees a minimum dividend yield of 500 KRW as a basic dividend and will pursue the industry's best shareholder returns through additional dividends reflecting business performance. It will also optimize capital efficiency by concurrently repurchasing and retiring treasury shares.

Yoon Byung-woon, CEO of NH Investment & Securities, stated, "We have prepared a corporate value enhancement plan with feasible and concrete measures," adding, "We will strive to enhance corporate value through sustainable growth and a predictable shareholder return policy."

NH Investment & Securities has maintained one of the industry's highest dividend payout ratios annually to enhance shareholder value (an average payout ratio of 47% over the past five years based on consolidated controlling shareholder net income) and conducted a treasury share repurchase and retirement worth 51.5 billion KRW earlier this year.