Woori Investment & Securities posted a third-quarter net profit of 3.4 billion won, down from the previous quarter as bond trading conditions deteriorated. Cumulative net profit still rose 27.3% from a year earlier, lifted by higher investment banking fees.
Net profit for the first nine months came to 28.2 billion won and operating profit to 31.2 billion won, up 27.3% and 72.2% respectively from a year earlier, the brokerage said on the 23rd. Net operating revenue climbed 46.0% to 203.5 billion won.
Investment banking drove the improvement. IB-related fees and commissions surged 163.5% to 67.2 billion won, as the firm won more large mandates following a 1 trillion won rights offering in May. Interest income rose 17.2% to 102.1 billion won, while non-interest income jumped 94.2% to 101.4 billion won.
Profitability weakened in the third quarter, however, as rising interest rates cut trading income and new IB deals slowed. Quarterly operating profit came to just 1.8 billion won.
Costs also remained a burden. Cumulative credit loss expenses more than doubled, rising 105.3% to 39.3 billion won, after the firm tightened feasibility assessments on real estate project finance assets taken on during its days as a merchant bank and as some sites soured. Selling and administrative expenses rose 31.7% to 133.1 billion won on spending to build IT systems and recruit specialists.
The brokerage expects earnings to improve in the fourth quarter as large IB deals are completed. It aims to accelerate growth from 2028, when the burden of initial investments and legacy distressed project finance eases, and to become a comprehensive financial investment business operator by 2030.