NH Investment & Securities (005940) Q2 2025 earnings summary

Executive summary

• Net income for 2Q25 rose to W256.9bn, up 23.4% quarter-over-quarter, with ROE improving to 12.7% from 10.4% in 1Q25.

• Net profit for H1 2025 was KRW 465.1 billion, up 10% year-over-year, with total assets reaching KRW 74.4 trillion and equity at KRW 8.1 trillion.

• Operating revenue reached W4,174.3bn, a 24.4% increase quarter-over-quarter, driven by strong trading and commission income.

• Fee and commission income rose 19.8% year-over-year, driven by strong IB and overseas brokerage, while trading income declined due to market volatility.

• The company completed two rounds of treasury share buybacks and cancellations, and announced a KRW 650 billion rights issue to strengthen capital for new business initiatives.

Financial highlights

• Operating income increased to W321.9bn, up 11.4% quarter-over-quarter.

• H1 2025 consolidated revenue: KRW 7.53 trillion; operating profit: KRW 611 billion; net profit: KRW 465.1 billion.

• Trading & related interest income surged to W314.4bn, up 59.4% quarter-over-quarter.

• Fee and commission income: KRW 557 billion (+19.8% YoY); net interest income: KRW 442 billion (+9.7% YoY).

• Client assets expanded to W411tn, up 15.6% quarter-over-quarter.

Outlook and guidance

• Continued focus on expanding digital channel client assets and high-net-worth individual (HNWI) client base.

• Ongoing investment in digital platforms and global expansion to support future growth.

• The company expects continued growth in IB and retail, with a focus on expanding the IMA business and digital transformation.

• A KRW 650 billion rights issue is planned for Q3 2025 to support capital requirements for new business and regulatory compliance.

• Management anticipates stable asset quality and further improvement in profitability, barring significant market disruptions.