Cumulative net profit surpasses last year's full-year figure in just nine months

WM, S&T revenue fall quarter-on-quarter amid lower stock market trading volume

The headquarters of KB Securities in Yeouido, Yeongdeungpo-gu, Seoul. [KB Securities]
The headquarters of KB Securities in Yeouido, Yeongdeungpo-gu, Seoul. [KB Securities]

KB Securities said Thursday its third-quarter net profit came in at 273 billion won ($204 million), down 39.4 percent from 450.8 billion won in the previous quarter. Cumulative net profit for the first nine months of the year, however, crossed the 1 trillion won mark at 1.07 trillion won, surpassing the company's full-year net profit for last year in just nine months.

According to KB Securities' preliminary consolidated earnings for the third quarter, operating profit fell 36.6 percent quarter-on-quarter to 381 billion won, from 600.6 billion won in the second quarter. Sales declined 55.7 percent to 5.44 trillion won, compared with 12.28 trillion won the previous quarter.

The quarterly decline reflected a drop in domestic stock market trading volume, which weighed on revenue across major business segments. According to KB Financial Group's third-quarter management results, the average daily trading value in the domestic equity market fell from 56 trillion won in the second quarter to 35 trillion won in the third quarter. KB Securities' wealth management segment posted total operating profit of 350.2 billion won, down 45.1 percent quarter-on-quarter, while the sales and trading segment fell 35.7 percent to 160.9 billion won.

Cumulative net profit for the first three quarters reached 1.07 trillion won, up 113.8 percent from 502.4 billion won in the same period last year. Cumulative operating profit rose 114.8 percent year-on-year to 1.43 trillion won, compared with 667.9 billion won a year earlier. The nine-month net profit exceeded last year's full-year figure of 682.4 billion won by 391.6 billion won, while cumulative operating profit surpassed last year's annual total of 911.5 billion won by 523.2 billion won.

KB Securities said it improved earnings from equity and equity-linked securities sales and proprietary hedging operations despite heightened market volatility. The company boosted equity derivatives sales through collaboration with the wealth management segment and diversification of underlying assets, while also expanding foreign exchange-related business and maintaining strong profitability in global bond sales.

Among business segments, the wealth management unit stood out for its growth. KB Securities' cumulative WM segment total operating profit for the first three quarters reached around 1.5 trillion won, up 105.1 percent from the same period last year. The company focused on product supply and customer asset protection in response to market volatility, while strengthening its digital customer base through expanded AI-driven investment information services.

In investment banking, KB Securities expanded its role as lead manager in debt capital markets and reinforced its global business competitiveness by arranging the issuance of foreign exchange stabilization bonds and kimchi bonds. In equity capital markets, the company led seven initial public offerings for mid-sized companies and managed multiple rights offerings.

The acquisition finance unit completed 14 domestic and international prime transactions. In mergers and acquisitions, KB Securities participated in major deals including advisory work on Woori Financial's acquisition of Tongyang Life Insurance, advisory on Netmarble's share exchange, and the Saramin tender offer.

The wholesale segment achieved a record high on a cumulative nine-month basis, driven by expanded global investor transactions and competitive institutional equity sales. KB Securities maintained the No. 1 market share in both domestic active and passive institutional equity markets, and its prime brokerage services business continued to grow through an expansion of hedge fund assets under management and securities lending pools.

Earlier this year, KB Securities posted operating profit of 1.05 trillion won and net profit of 801 billion won on a consolidated basis for the first half, marking the best half-year earnings in the company's history. The strong performance was driven by a rally in the domestic stock market, with major business segments — including wealth management, capital markets and wholesale — all growing steadily, and individual customer assets under management topping 200 trillion won.


hajun825@heraldcorp.com