Q3 operating profit falls 67.8%

Rising rates weigh on asset management returns

Lower market trading volume also hits fee income

[Provided by Hana Securities]
[Provided by Hana Securities]

Hana Securities said Friday its cumulative operating profit for the first three quarters of this year reached 366.4 billion won ($277 million) on a consolidated basis, with net profit for the period at 283.4 billion won.

Compared with the same period a year earlier, operating profit surged 98.9 percent and net profit for the period rose 67.1 percent.

However, looking at the third quarter alone, consolidated operating profit fell 67.8 percent year-on-year to 21.1 billion won.

Net profit for the period dropped 83.9 percent to 10.1 billion won in the quarter, while sales rose 93.7 percent to 4.7 trillion won.

"There were headwinds from a decline in asset management returns due to rising interest rates and a drop in market trading volume, but we maintained an active management stance across all divisions and focused on securing new growth drivers," the company said.

The wealth management division saw fee income decline as trading volume fell. The sales and trading division was also affected by rising interest rates, which weighed on bond management returns, though institutional sales and delta-one businesses showed growth.

"We are maintaining a conservative management stance in response to rising interest rates while concentrating on securing new growth drivers," a Hana Securities official said.

The company plans to focus on expanding its customer base by promoting Hana Securities V, a new MTS built on AI and data technology that enhances investment information services.

Hana Securities V is designed to let AI analyze complex market and investment data and deliver insights to customers quickly and easily. To mark the launch of the new MTS, the company is also offering a one-year fixed-term promissory note with a special pre-tax annual yield of 5.7 percent.


jiyun@heraldcorp.com