Daishin Securities headquarters [Daishin Securities]
Daishin Securities headquarters [Daishin Securities]

Daishin Securities posted a sharp jump in second-quarter operating profit, driven by a surge in stock market trading volume that boosted its brokerage business.

The company said Tuesday its consolidated operating profit for the second quarter came in at 359.9 billion won ($254 million), up 165.2 percent from the same period a year earlier.

Revenue over the same period rose 92.9 percent to 2.55 trillion won. Net profit for the period was preliminarily tallied at 257.8 billion won, a 242.8 percent increase year on year.

[Daishin Securities]
[Daishin Securities]

Growth in domestic and overseas stock market trading volume drove the strong results. Second-quarter net brokerage commissions reached 187.8 billion won, up 158.7 percent from a year earlier. Domestic equity commissions climbed 212.7 percent to 158.4 billion won, while overseas equity commissions rose 85.1 percent to 12.2 billion won.

The buoyant market also lifted margin lending income. Second-quarter margin loan interest revenue jumped 123.2 percent year on year to 18.3 billion won.

Daishin Securities said higher trading volume expanded brokerage fee income and grew assets under custody, adding that the market rally also increased interest income from margin lending and client deposits.

The investment banking unit also expanded. Second-quarter IB and project financing revenue rose 96.7 percent year on year to 80.8 billion won.

The company said financial advisory fees and guarantee fees increased on the back of high-quality project financing deals it arranged. It added that while profit from initial public offerings declined due to fewer listings, gains from pre-IPO investments and new technology investment partnerships improved.

The trading division recorded the largest improvement. Second-quarter trading profit came in at 178.8 billion won, up 305.4 percent from a year earlier, as gains on securities held for investment lifted overall trading performance, the company said.


moon@heraldcorp.com