The South Korean securities house has posted a slight drop in its sales volume of ELS and DLS in Q2 23 YoY, however.

Mirae Asset Securities recorded a drop in net income to KRW140.9 billion (US$110m) in the second quarter of 2023, down 47% compared to the prior-year quarter, according to the Korean securities house’s latest earnings report.

Net operating revenue dropped by 11% to KRW367.3 billion in Q2 23 year-on-year (YoY).

Equity-linked securities (ELS) and derivative-linked securities (DLS), which are housed under the wealth management segment including equity-linked bonds (ELBs) and derivative-linked bonds (DLBs), saw a 14% increase in their combined revenue at KRW3.1 billion during the quarter. Total assets invested in the ELS and DLS remained unchanged at KRW5.1 trillion.

Wealth management’s overall revenue amounted to KRW61.7 billion, sliding 1.7% YoY but rising eight percent quarter-on-quarter (QoQ).

By sales volume, ELS and ELBs posted KRW1.1 trillion in Q2 23, a decline from KRW1.2 trillion YoY while no DLS or DLBs booked. Meanwhile the total redemption amount increased to KRW1.3 trillion from KRW700m, according to the earnings report. 

SRP data shows that from April to June, KB Securities remained the most active issuer in Q2 23, with 502 products – led by ELS – sold at KRW906.7 billion. The volume decreased by 19% compared to the prior-year period when the issuer marketed 500 products at KRW1.12 trillion. 

Hana Securities was the second-largest issuer during the quarter after collecting KRW 2.78 trillion from 452 products, rising from 355 products that collected KRW 1.59 trillion from a year ago.

Mirae Asset Securities came in as the third-largest issuer on back of 449 products in Q2 23, with sales volume reaching KRW1.05 trillion. The volume dropped eight percent YoY when 447 products were issued at KRW1.14 trillion.

Other large issuers in Q2 23 include Korea Investment & Securities (432) and Shinhan Investment (396).

ELS remain dominant in the South Korean market, which is linked to index basket (3,366), single share (795) and single index (533). Some 352 DLS were linked to interest rate and 132 to credit.

Samsung Securities’ profit goes up

Samsung Securities reported solid earnings in Q2 23, with net income jumping 17% to KRW139 billion YoY, according to the financial group’s latest earnings report.

Net revenues grew 12.6% to KRW383.3 billion.

Brokerage commission reached KRW127.9 billion in Q2 23, ticking up by 25% YoY. Domestic and overseas brokerage commissions contributed KRW99.8 billion and KRW28.1 billion, respectively.

Financial product sales stood at KRW69.6 billion, down 7.3% QoQ, and 63% of sales stemmed from over-the-counter (OTC) derivatives. Additionally, ELS early redemption volume recorded a 21.7% increase to KRW1.1 trillion YoY.

The Korean securities house gathered KRW128.3 billion for trading and interest income during the quarter, soaring 52% YoY yet tumbling 59% QoQ. Both ELS and DLS recorded KRW4.2 trillion in trading income-related client assets during the quarter.

Samsung Securities was the sixth largest issuer in Q2 23 on back of 356 ELS and DLS together sold at KRW987 billion, according to SRP data.

Click the links to read Mirae Asset Securities’ FY2023 2Q earnings release and Samsung Securities' 2Q23 earnings release.

Image: Jinho Park/Adobe Stock.