Shinhan Investment's Yeouido headquarters [Provided by Shinhan Investment]
Shinhan Investment's Yeouido headquarters [Provided by Shinhan Investment]

Shinhan Investment more than doubled its first-half net profit year-on-year, driven by higher trading volume amid a buoyant capital market.

According to a disclosure by Shinhan Financial Group on Thursday, Shinhan Investment posted a net profit for the period of 577.7 billion won ($390 million) in the first half of this year, up 123.1 percent from the same period a year earlier. Operating profit rose 135.0 percent over the same period to 748.4 billion won.

Second-quarter net profit came in at 289.3 billion won, up 0.3 percent quarter-on-quarter, while operating profit fell 6.3 percent to 362 billion won. Compared with the same quarter a year earlier, net profit and operating profit grew 91.6 percent and 80.2 percent, respectively.

Shinhan Investment extended its earnings momentum into the second quarter after setting an all-time record in the first quarter, sustaining solid profitability throughout the first half. In the first quarter, the firm recorded net profit of 288.4 billion won, supported by broad-based growth across its wealth management, corporate and investment banking, and sales and trading divisions.

For the first half as a whole, higher trading volumes in a strong capital market boosted brokerage commissions and financial product fee income, underpinning the earnings improvement. In the second quarter, however, net profit was little changed from the prior quarter as conservative portfolio management in response to rising market interest rates weighed on trading gains.

"Growth in fee income from stock brokerage and financial products, combined with improved trading gains, drove a 123.1 percent year-on-year increase in first-half net profit, marking a significant improvement in our bottom line," a Shinhan Investment official said.


hajun825@heraldcorp.com