NH Investment & Securities (005940) Q1 2026 earnings summary

Executive summary

• Net operating revenue reached W1,051.1bn in 1Q26, up 36.9% YoY and 88.8% QoQ, driven by strong brokerage and financial product sales.

• Net profit for Q1 2026 was KRW 475.7 billion, up 128.5% YoY, with total revenue of KRW 8.9 trillion and operating profit of KRW 636.7 billion, reflecting strong growth in brokerage and trading income.

• Fee and commission income surged 98.8% YoY, led by a 197.5% increase in brokerage fees and a 90.2% rise in financial product sales fees.

• Net interest income rose 24% YoY, and trading-related gains rebounded, with net gains from financial instruments at fair value through profit or loss reaching KRW 106.4 billion.

• The company maintained robust capital adequacy, with a net capital ratio of 2,449.4% and a leverage ratio of 677.4%.

Financial highlights

• Q1 2026 consolidated revenue: KRW 8,897.7 billion; operating profit: KRW 636.7 billion; net profit: KRW 475.7 billion.

• Commissions climbed to W515.0bn (+48.4% QoQ), with brokerage commissions at W349.5bn (+57.4% QoQ).

• Trading and related interest income increased to W424.2bn (+21.5% QoQ); net interest income: KRW 265.5 billion; trading gains: KRW 106.4 billion.

• Financial product sales commissions jumped to W49.1bn (+87.7% QoQ), up 90.2% YoY.

• Total assets: KRW 99.1 trillion; equity: KRW 10.0 trillion.

Outlook and guidance

• Strategic asset allocation and increased trading activity are expected to support continued revenue growth.

• The company expects continued growth in asset management and trading, with a focus on digital transformation and global expansion.

• Enhanced client asset base and product diversification position the company for further expansion.

• Market volatility and regulatory changes remain key factors, but the firm aims to strengthen risk management and diversify revenue streams.