Hanyang Securities reported second-quarter operating profit of 25.5 billion won ($18 million) and net profit for the period of 19.7 billion won on Tuesday, up 43.3 percent and 44.5 percent, respectively, from a year earlier.
The brokerage also extended its growth momentum on a first-half cumulative basis. Operating profit rose 9.1 percent year-on-year to 51.5 billion won, while net profit for the period climbed 10.4 percent to 38.3 billion won.
By segment, trading and retail were the standout performers. The trading division benefited from a buoyant equity market and an expansion of ETF liquidity-provider operations. The retail division was lifted by higher brokerage commission revenue and credit-lending interest income amid the strong stock market, as well as marketing gains from a push to strengthen digital channels.
The bond and debt capital markets division showed signs of recovery through underwriting-focused operations despite headwinds from rising interest rates. The project financing division continued to grow earnings by pursuing a range of deals centered on refinancing high-quality projects while minimizing the use of proprietary capital.
On the retail front, Hanyang Securities has been working to sharpen its digital channels and product lineup. The company revamped its MTS to strengthen its digital sales platform and expanded its financial product offerings to include online special-sale repurchase agreements and target-return funds. On July 22, it also sold a special fixed-rate repurchase agreement offering an annual pre-tax yield of 8.0 percent.
The firm has continued efforts to enhance shareholder value. Last year it paid a cash dividend of 1,600 won per common share, with a consolidated dividend payout ratio of 37.4 percent. It plans to maintain a payout ratio of at least 30 percent this year.
"Since the change in our controlling shareholder last June, we have been continuously restructuring our business portfolio and building a new foundation for growth," a Hanyang Securities official said. "Building on that, we will further strengthen the competitiveness of our existing businesses and expand our earnings base into new areas such as over-the-counter derivatives to sustain continued growth."
moon@heraldcorp.com
