Kiwoom Securities reports mixed Q3 results, slight dip in OP

Kiwoom Securities CI

Kiwoom Securities announced on Wednesday that its consolidated operating profit for the third quarter of 2024 was 268 billion won ($193.7 million), down 1.43 percent from a year ago. However, the company’s revenue surged 29.23 percent on-year to 2.71 trillion won, and net profit rose 3.71 percent to 211.6 billion won.

The reported operating profit surpassed the market consensus of 261.8 billion won, compiled by Yonhap Infomax, by 2.4 percent.

A closer look at brokerage fee income showed contrasting trends between domestic and international markets. With increased trading by South Korean retail investors in foreign stocks, international brokerage fees surged 31.6 percent from a year ago. However, fees from domestic stock trading fell 15.7 percent, reflecting a stagnant local market.

As a result, combined brokerage fees from both domestic and overseas stocks declined 0.9 percent from the previous quarter and 4.9 percent on-year to 127.2 billion won.

Kiwoom’s retail market share in Korea’s stock market dropped to 28.7 percent, its lowest figure within the past year. In line with the sluggish domestic market, both credit loan interest income and deposit interest income decreased compared to the previous quarter.

The company’s investment banking (IB) sector also saw a downturn. Revenue from areas such as structured finance, project financing (PF), mergers and acquisitions (M&A), and the bond and equity capital markets (DCM and ECM) fell 10.6 percent from 56.7 billion won in the second quarter to 50.4 billion won in the third quarter.