Samsung Securities (016360) Q2 2024 earnings summary

Executive summary

• 2Q24 consolidated net income reached KRW 257.9bn, up 70.2% year-over-year and 1.9% sequentially; annualized ROE at 15.1%.

• Net revenues for 2Q24 were KRW 595.3bn, up 43.8% year-over-year, with strong growth in trading, interest income, and investment banking.

• Retail client assets grew to KRW 319.7tn, with net new inflows of KRW 7.6tn and HNWI clients increasing 1.7% quarter-over-quarter.

Financial highlights

• Consolidated pretax income for 2Q24 was KRW 344.7bn, up 69.7% year-over-year and 2.5% quarter-over-quarter.

• Brokerage commissions were KRW 156.9bn, up 12.0% year-over-year but down 3.7% sequentially; overseas trading value rose 22.4% quarter-over-quarter.

• Financial product sales increased 11.5% sequentially to KRW 50.6bn, with retirement pension balance up 4.8% quarter-over-quarter.

• Trading and interest income surged 118.4% year-over-year to KRW 339.8bn.

• Investment banking revenue rose 44.2% year-over-year to KRW 57.9bn, driven by major deals in IPOs and bond issues.

Outlook and guidance

• Management highlights robust client asset growth and continued expansion in investment banking and trading activities.

• Forward-looking statements caution that results are subject to risks and uncertainties.