KB Investment and Securities Co. announced first-half sales amounting to 535.1 billion won, up 35.1 percent year-on-year, and operating profit of 43.3 billion won, down 3.3 percent year-on-year, doing far better than its rivals.
Many investment and securities firms posted losses in the first half due to poor results in their ELS (equity linked securities) operations, but KB I&S did not loss as much from the ELS business as its rivals.
The securities firm’s ROE came to around 9 percent in the first half compared to 4.9 percent in 2014 and 7.9 percent in 2015, the company said.
KB Investment & Securities Co. provides investment banking services in South Korea. The company offers wholesale business, retail brokerage, wealth management and derivatives trading services, among others. Its products and services include corporate finance/IB, sales and trading, corporate sales/retail, research, future sales, funds, debentures, repurchase agreements, CMA products, wrap accounts, and equity-linked securities. The company was formerly known as Hannuri Salomon Securities Co., Ltd. and changed its name to KB Investment & Securities Co., Ltd. in 2008. KB Investment & Securities Co., Ltd. was founded in 1995 and is headquartered in Seoul, South Korea. KB Investment & Securities Co., Ltd. operates as a subsidiary of KB Financial Group, Inc.
The company was helped by its investment banking and wealth management sectors, with the IB sector’s operating profit in the 1st half rising 19 percent to 36.1 billion won thanks mainly to a hefty rise in fee income from the debt capital market (DCM). According to the Market Inside League Table, the KB I&S topped the rivals in the debt capital market. In the first half, the company handled 8.46 trillion won worth of debt instrument, taking up18.17 percent of the total debt capital market, far outpacing NH I&S, which came in second with 11.4 percent of the market share.
The company did well in the equity capital market, with the company leading the SPAC market, a niche market, boosting its fee income to around 2 billion won in the first half, up 10 times YoY.
In the area of the wealth management, KB I&S earned 26.2 billion own in the first half, the largest in the first half of any one of its years in operation. The multiple business branches being pushed by the KB Financial Group for all of its affiliates had a large impact on the securities firm’s wealth management income. The assets under management by branches came to around 5.178 trillion won, up 38 percent YoY.
President Chun Byung-cho said the company should do well in the second half, also, due to steady work to improve its future growth base in the past two years.
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An ad for ‘KB Stock Loan’ introduced recently by KB I&S.
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