Korea Investment Holdings (071050) Q1 2025 earnings summary

Executive summary

• Net income reached W459.3B in 1Q25, up 34.0% year-over-year, driven by strong trading gains at KIS.

• Consolidated revenue for Q1 2025 was ₩5,363.8 billion, with consolidated net income attributable to controlling interests at ₩458.4 billion, and basic EPS of ₩7,849.

• Operating income rose 38.8% YoY to W529.6B, and pretax income increased 32.2% YoY to W615.0B.

• Annualized ROE improved to 18.6% from 16.0% YoY.

• The group maintained a strong capital position, with total consolidated assets at ₩111.9 trillion and equity at ₩9.99 trillion as of March 31, 2025.

Financial highlights

• Net operating revenue grew 23.5% YoY to W975.2B, with fee and commission income up 11.9% YoY.

• Interest income increased 16.7% YoY to W353.7B.

• SG&A expenses rose 11.1% YoY but declined 8.2% sequentially.

• Total consolidated assets increased to ₩111.9 trillion from ₩109.2 trillion at year-end 2024.

• The group’s consolidated ROE and ROA remain strong, supported by stable net interest and fee income.

Outlook and guidance

• Trading profit expected to remain robust as funding costs decline.

• IB pipeline remains strong with anticipated ECM and DCM deals.

• Management expects continued growth in asset management and investment banking, with a focus on risk management amid market volatility.

• The group plans to maintain prudent capital ratios and liquidity, with ongoing investments in digital transformation and overseas expansion.