Kiwoom Securities (039490) Q1 2024 earnings summary

Executive summary

• Net income for 1Q24 reached KRW 246 billion, a turnaround from a loss in 4Q23 but down 9.4% year-over-year.

• Operating income rebounded to KRW 301 billion from a loss in the previous quarter, though down 11% year-over-year.

• Brokerage commission revenue increased due to higher market trading volumes and growing overseas equity market share.

Financial highlights

• Net revenue for 1Q24 was KRW 431 billion, a significant recovery from negative KRW 173 billion in 4Q23.

• Consolidated net income was KRW 245 billion, down 16% year-over-year.

• Annualized ROE on a consolidated basis was 19.9%, down from 25.1% in 1Q23.

• Trading income surged 226% quarter-over-quarter but was down 34.3% year-over-year.

Outlook and guidance

• Strategic initiatives include a share cancellation plan (one-third of treasury shares cancelled annually from 2024–2026) and a target shareholder return ratio of 30%+ based on separate net income.

• Target ROE set at 15% (three-year average), with growth plans focused on wealth management, investment banking, S&T, and global expansion.