[Global Finance Awards] Korea Investment & Securities seeks to become Asia’s top investment bank

SECURITIES
KOREA INVESTMENT & SECURITIES

Korea Investment & Securities is quickly becoming Asia’s leading investment bank, as it increases its presence in major global markets while securing a stable profit model.

The Korean securities firm has been pursuing a two-track model combining investment banking with asset management and trading, with aims to develop a stable profit model.

As a result of such efforts, Korea Investment & Securities posted net profit of 410.9 billion won ($364 million) in the third quarter of this year. The firm’s return on equity -- a measure of financial performance calculated by dividing net income by shareholders’ equity -- stood at 12.7 percent, well above the industry average, during the cited period.

Profits were dispersed evenly across different categories as well, with consignment sales accounting for 22.4 percent, asset management for 13.7 percent, investment banking for 22.4 percent and asset investment 21.6 percent.

“Though Korea’s securities market in the third quarter experienced a slump, Korea Investment & Securities was able to reap formidable earnings through synergy among its diverse business areas,” the company said.

In addition, Korea Investment & Securities was the first in the industry to earn regulatory approval to offer note payables to customers for the first time. Total sales of such products currently reach 3.45 trillion won, according to the securities firm.

Expanding its global presence has been another priority, as the company seeks to further tap not only global financial hubs, including the US, the UK, Singapore and Hong Kong, but also high-growth developing markets such as Vietnam, China and Indonesia.

In October, Korea Investment & Securities’ Hong Kong unit decided to issue additional shares to raise new capital worth $400 million to fund the start of proprietary trading activities and new financial product offerings there.

In February, the company’s Vietnam unit became the first foreign company there to acquire a license to issue derivatives. Its Indonesia unit, launched in July, has adopted Korea’s HTS/WTS online stock trading platform, with aims to become one of the top five securities brokerages in the country.

By Sohn Ji-young (jys@heraldcorp.com)