Korea Investment & Securities joined the 1 trillion won club in terms of total net profit in the first three quarters as it logged a new record-high this year.
Korea Investment & Securities announced provisional financial results, reporting 4,137.6 billion won in sales, 359.4 billion won in operating profit and 620.9 billion won in net profit on a consolidated basis in the third quarter on Nov. 2.
Compared to the same period last year, the three items grew 29.98 percent, 16.37 percent, and 139.84 percent, respectively.
In the first three quarters of this year, the company posted a net profit of 1,204.3 billion, the highest ever. The figure surged 186.2 percent from 420.8 billion won in the same period of 2020.
Cumulative sales by the end of the third quarter hit 12,059.7 billion won, up 0.35 percent from a year earlier. Cumulative operating Profit rose 121.1 percent year on year to 1.637 trillion won during the same period.
The company said its business performance was driven by the brokerage and investment banking sectors.
Korea Investment & Securities said it continued its business performances at the top level in the securities industry thanks to diversified profit structures, synergies among business sectors, and advanced risk management despite uncertain market conditions ignited by the prolonged COVID-19 crisis.
Korea Investment & Securities posted excellent results in the overall stock and bond issuance markets including initial public offerings (IPOs), capital increases, and corporate bonds, resulting in a significant increase in Profit in the investment banking sector this year.
By continuously revitalizing overseas stock trade and strengthening non-face-to-face channel services, the securities company achieved solid performances in the brokerage sector.
“In the second quarter, one-time cost was incurred by fully compensating private equity funds to restore customer trust,” a company official explained.
“But in the third quarter, net profit swelled thanks to the inclusion of equity method Profit from Kakao Bank’s IPO.”
KIS launching 102 New ELWs
Korea Investment & Securities announced on November 17 that it will list 102 new equity-linked warrants (ELWs).
The 27 index-type ELWs are based on the KOSPI 200 index, and 75 stock-type ELWs are based on Krafton, Celltrion Healthcare and HMM, among others.
A total of 1,217 ELWs can be traded through Korea Investment & Securities. Korea Investment & Securities has a total of 1,217 ELWs, the largest number.
An ELW is a derivatives-linked security that indicates a right to form a transaction of stocks or receive money by either party’s unilateral manifestation of intent in a predetermined manner depending on changes in the price of specific stocks or price index.
It is a kind of warrant in that it gives the right to purchase a certain stock at a predetermined price.
ELWs are similar to derivatives like stock index options in terms of economic features but differ in other key aspects.
Business Agreement with Korea Southeast Power
Korea Investment & Securities announced on Oct. 29 that it signed a memorandum of understanding (MOU) with Korea Southeast Power for carbon neutrality and green economy transformation in the power generation sector.
The business agreement was signed to reach the government’s 2030 national greenhouse gas reduction goal and implement its 2050 carbon neutral scenario.
The two companies decided to seek ways to reduce greenhouse gas emissions using emission trading systems and cooperate in expanding the fulfillment of social investment responsibilities including climate finance.
Specifically, they two companies will team up in overseas case studies such as derivatives related to carbon emission rights and projects that can be converted into offset emission rights such as forest and marine absorption sources.
Furthermore, Korea Investment & Securities plans to actively promote climate finance-related businesses going beyond playing its roles as a simple liquidity provider in the carbon emission market in the future.
“Investment in the environment is growing in importance,” said Jung Il-moon, president of Korea Investment & Securities.
“We, Korea Investment & Securities and Korea Southern Power, will strengthen our leading positions in carbon neutrality and green economy as two organizations representing finance and power generation.”
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