Daol Investment & Securities (CEO Hwang Jun-ho) announced on the 3rd that it recorded a loss last year due to an increase in bad debt provisions related to real estate PF.
Daol Investment & Securities provisionally disclosed that it posted an operating profit of 75.5 billion KRW and a net loss of 45.4 billion KRW on a consolidated basis last year. It faced difficulties in expanding profits in a market environment unfavorable to small and medium-sized securities firms, and the loss size increased as 45.6 billion KRW of bad debt provisions was reflected due to strengthened evaluation standards for the profitability of real estate PF projects.
A Daol Investment & Securities official said, "Although we made various efforts to improve performance, it was insufficient to overcome the market environment where uncertainties both domestically and internationally were increasing," but added, "However, we have continuously reduced exposure related to real estate PF through bond sales and repayments, and especially as bridge loan exposure sharply declined, the risk of insolvency has significantly decreased."
He also added, "This year, the recovery of real estate PF assets is expected to proceed in earnest, and bond trading is expected to become active due to interest rate fluctuations, raising expectations for performance improvement."
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