IBK Investment Securities posts W16.6b net profit in Q2, up 28% on-year

IBK Investment Securities recorded a net profit of 16.6 billion won ($11.3 million) in the second quarter of this year, extending double-digit growth from the same period a year earlier. Higher brokerage fees on increased domestic stock market trading volume and improved wealth management revenue drove the results.

According to earnings data released Monday by Industrial Bank of Korea, IBK Investment Securities' second-quarter net profit rose 3.6 billion won, or 27.7 percent, from 13 billion won in the same period last year to 16.6 billion won. Cumulative net profit for the first half reached 30.3 billion won, up 21.2 percent from 25 billion won in the first half of last year.

On a pre-consolidation basis, IBK Investment Securities accounted for 11.8 percent of combined profit from Industrial Bank of Korea's subsidiaries, the second-highest share after IBK Capital at 49.3 percent.

IBK Investment Securities is also expanding its balance sheet alongside the earnings improvement. Total assets, excluding trust assets, stood at 12.75 trillion won at the end of the first half of this year, up about 2.3 trillion won from the end of last year. Capital remained largely unchanged at 1.38 trillion won, compared with 1.37 trillion won at the end of last year.

"Brokerage fee income increased on the back of higher trading volume driven by a more active domestic stock market, and a significant improvement in wealth management revenue propelled second-quarter earnings," a company official said. "Productive finance activities also expanded, including underwriting of P-CBO deals for the Korea Credit Guarantee Fund, Korea Technology Finance Corporation and the Small and Medium Business Corporation, as well as Kosdaq listing mandates."