NH Investment & Securities (005940) Q1 2025 earnings summary

Executive summary

• Net income for 1Q25 was KRW 208.2 billion, up 89.3% sequentially but down 7.7% year-over-year, with ROE improving to 10.4% from 5.5% in the previous quarter.

• Operating income reached KRW 267.6 billion, a 59.2% increase quarter-over-quarter, while consolidated revenue was KRW 5,567 billion.

• Total assets grew to KRW 68.1 trillion, and equity attributable to owners was KRW 7.98 trillion at quarter-end.

• Segment profit growth was led by IB and Sales, while Trading saw a decline due to market volatility.

• ROE improved to 10.4% in 1Q25 from 5.5% in 4Q24.

Financial highlights

• Operating revenue for 1Q25 was KRW 3,356.6 billion, up from KRW 3,191.0 billion in 1Q24.

• Fee and commission income rose to KRW 259.1 billion, up 9% year-over-year, driven by IB fees (+32%) and brokerage market share gains.

• Net interest income was KRW 214.1 billion, up 6.2% year-over-year.

• Operating profit was KRW 289 billion, up 4.4% from the previous quarter but down 4.3% year-over-year.

• Earnings per share (EPS) was KRW 600, compared to KRW 642 in Q1 2024.

Outlook and guidance

• Management expects continued fee income growth in IB and brokerage, but notes ongoing market volatility and regulatory headwinds.

• The company maintained a strong capital base and continued to expand client assets, with HNWI client numbers and assets both increasing quarter-over-quarter.

• Cautious on Trading outlook due to persistent global and domestic uncertainties, including US tariff policy and domestic political risks.

• Focus remains on risk management, digital transformation, and expanding global business platforms.