NH Investment & Securities, Samsung Securities, and Kiwoom Securities are forecast to deliver Q2 earnings significantly above market consensus, driven by a surge in trading volumes and brokerage revenue. Q2 average daily trading volume on Korean exchanges reached 90 trillion won, marking a 35.1% quarter-on-quarter increase. Analyst projections show NH Investment's Q2 net profit at 479.5 billion won, 20.3% above the 398.6 billion won consensus, while Samsung Securities' Q2 net profit is expected at 519.8 billion won, exceeding consensus by 20.2%. The earnings improvement stems from increased credit balance utilization and foreign investor commission inflows, particularly Samsung Securities' revenue from Interactive Brokers (IBKR) partnerships. Korean securities stocks are benefiting from semiconductor-sector-driven market gains and policy initiatives to activate KOSDAQ trading.
NH Investment Q2 Net Profit Forecast at 479.5 Billion Won
NH Investment & Securities is projected to record Q2 revenue of 639.3 billion won and operating profit of 321.9 billion won, representing year-on-year increases of 44.67% and 68.21% respectively, according to Yonhap Infomax consensus data. The firm's Q2 net profit attributable to controlling shareholders is forecast at 479.5 billion won, surpassing the consensus estimate of 398.6 billion won by 20.3%. The strong performance is attributed to Q2 average daily trading volume reaching 90 trillion won, a 35.1% quarter-on-quarter rise, alongside an 8.0% increase in credit balance outstanding from the previous quarter, which drove significant growth in brokerage revenue.
The company's consistent dividend payout ratio approaching 50% annually is expected to support share price appreciation. Jung Tae-jun, researcher at Mirae Asset Securities, stated that "robust earnings and high dividend payout ratio will result in a 7.6% dividend yield this year," adding that "share price gains may accelerate as the dividend record date approaches."
Samsung Securities Q2 Earnings Exceed Consensus by 20.2%
Samsung Securities is identified as the primary beneficiary of the trading volume surge. The firm's Q2 revenue and operating profit forecasts stand at 613.8 billion won and 308.7 billion won, up 60.12% and 117.65% year-on-year respectively. Net profit attributable to controlling shareholders is projected at 519.8 billion won, 20.2% above the consensus estimate of 432.4 billion won.
Beyond increased average daily trading volume, Samsung Securities benefits from foreign investor commission revenue generated through its Interactive Brokers (IBKR) partnership. While IBKR-related revenue currently represents a small portion of total income, its contribution is expected to grow steadily. Analysts note that Samsung Securities' relatively stable trading profit structure allows the firm to fully capture the benefits of rising commission income.
Kiwoom Securities Target Price Raised to 550,000 Won
Kiwoom Securities is forecast to post Q2 revenue of 615 billion won and operating profit of 408.3 billion won, representing year-on-year increases of 46.07% and 59.49% respectively. Following the earnings outlook, the firm's target price was raised from 516,000 won to 550,000 won.
Trading profit increased quarter-on-quarter, supported by semiconductor-sector-driven market gains, while retail investor trading volume expanded significantly. The company recently announced corporate value enhancement plans that include meeting high-dividend company requirements as part of shareholder return policy. This year's dividend payout ratio is projected at 25.2%, with an expected dividend yield of 6.4%.
Korean Securities Firms Benefit from 90 Trillion Won Daily Trading Volume
A securities industry official stated, "Q2 average daily trading volume reached 90 trillion won, resulting in clear revenue improvement centered on brokerage operations." The official added, "The strong performance of securities stocks is likely to continue in the second half as KOSDAQ activation policies and expanded foreign investor trading channels converge."
FAQ
What drove Korean securities firms' Q2 earnings above consensus?
Q2 average daily trading volume on Korean exchanges reached 90 trillion won, a 35.1% quarter-on-quarter increase, which significantly boosted brokerage revenue. Credit balance outstanding rose 8.0% quarter-on-quarter at NH Investment, while Samsung Securities gained additional revenue from foreign investor commissions through its Interactive Brokers partnership.
How much did NH Investment's Q2 net profit exceed consensus estimates?
NH Investment & Securities' Q2 net profit attributable to controlling shareholders is forecast at 479.5 billion won, which is 20.3% above the market consensus estimate of 398.6 billion won, according to Yonhap Infomax consensus data.
What is the expected dividend yield for NH Investment this year?
NH Investment & Securities is expected to deliver a 7.6% dividend yield this year, supported by the company's consistent dividend payout ratio approaching 50% annually, according to Mirae Asset Securities researcher Jung Tae-jun.
