Hyundai Motor Securities (001500) Q2 2025 earnings summary

Executive summary

• Net profit for the half-year ended June 2025 was KRW 40.0 billion, up 59% year-over-year, with pre-tax profit at KRW 52.4 billion, a 61% increase from the prior year period.

• Revenue growth was driven by strong fee and commission income, robust interest income, and improved gains from financial instruments at fair value.

• The company completed a significant capital increase and retired all preferred shares, strengthening its capital base.

Financial highlights

• Total assets reached KRW 12,699 billion, with liabilities at KRW 11,278 billion and equity at KRW 1,422 billion as of June 2025.

• Fee and commission income for the half-year was KRW 81.3 billion, and net interest income was KRW 56.8 billion.

• Gains from financial instruments at fair value through profit or loss were KRW 15.8 billion.

• Basic earnings per share for the half-year was KRW 773, with diluted EPS at KRW 725.

• Cash and cash equivalents at period end were KRW 673.8 billion.

Outlook and guidance

• The company targets ROE improvement from 4% to 8% by 2027 and aims for a dividend payout ratio of 30–35%, with a long-term goal of ROE above 10% and payout ratio above 40% post-2028.

• Management expects continued growth in fee-based income and stable capital adequacy.