South Korea’s securities industry has narrowed the earnings gap with banks, buoyed by a strong stock market that has lifted trading and brokerage revenue.
On the 6th, the financial investment industry and FnGuide said the combined first-quarter net profit of the 10 largest brokerages by equity totaled 4.4656 trillion won, bringing results to roughly the level of the banking sector.
By firm (consensus estimates), Mirae Asset Securities posted the largest net profit at 1.0332 trillion won, followed by Korea Financial Holdings (Korea Investment & Securities) at 672.9 billion won, Meritz Financial Group (Meritz Securities) at 668.5 billion won, Kiwoom Securities at 417.9 billion won, Samsung Securities at 386.0 billion won and Daishin Securities at 69.5 billion won. Brokerage units of financial groups also reported: NH Investment & Securities 475.7 billion won, KB Securities 350.2 billion won, Shinhan Investment Corp. 288.4 billion won and Hana Securities 103.3 billion won.
Against that backdrop, the combined first-quarter net profit of the five major banks totaled 4.4420 trillion won. By bank, Shinhan Bank led with 1.1571 trillion won, followed by Hana Bank with 1.1042 trillion won and KB Kookmin Bank with 1.1010 trillion won. NH NongHyup Bank posted 557.7 billion won and Woori Bank 531.2 billion won.
The securities industry’s net profit relative to banks has risen steadily, from 27.8% in 2022 to 36.3% in 2023, 42.9% in 2024 and 50.0% in 2025. Last year, the combined net profit of the 10 brokerages reached 7.67 trillion won, close to half the 15.33 trillion won earned by the five banks. Analysts said the gap has narrowed faster this year as stock prices rose and trading value expanded, improving brokerages’ earnings structure.
Brokerage business was cited as the main driver, with commission income jumping as both retail investors and foreign funds flowed into the market. The industry has also diversified revenue sources compared with the past, with results from global investment and trading adding support. Mirae Asset Securities, which is expected to post more than 1 trillion won in first-quarter net profit, saw earnings surge as valuation gains tied to its SpaceX investment increased sharply.
Regulatory changes were also described as supportive. The introduction of comprehensive investment management accounts, known as IMA, and the expansion of short-term note issuance businesses are increasing the scale of brokerages’ fund management and broadening opportunities to generate revenue across investment and corporate finance.
Market watchers said the brokerage sector is likely to remain resilient for the time being on the back of the market rally. Woo Do-hyung, an analyst at Yuanta Securities, said credit provision balances and client deposits (130 trillion won) rose 4.1% and 17.6%, respectively, from the previous month to record highs. He said buying sentiment remains firm and turnover among retail investors is likely to keep rising.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.