Daishin Securities is rapidly improving its performance and strengthening its capital as it accelerates its leap toward becoming a major investment bank (IB). The company reported that its net profit for the first half of this year more than doubled compared to the same period last year, reaching 403.3 billion won, while its equity capital expanded to the mid-4 trillion won range. With a goal of entering the major IB sector by 2028, the growth strategy of Vice Chairman Yang Hong-seok, the third-generation owner, is gaining momentum.
According to the financial investment industry on August 14, Daishin Securities' consolidated net profit for the first half of this year was 403.3 billion won, a 165.2% increase from 152.1 billion won in the same period last year.
Among the top 10 securities firms by equity capital, Daishin Securities ranked ninth in net profit for the first half of the year. While its ranking remained unchanged from last year, the size of its net profit nearly tripled in one year.
In the first half of this year, Mirae Asset Securities led with a net profit of 2.9 trillion won, followed by Korea Investment & Securities with 1.7 trillion won and Kiwoom Securities with 1.1 trillion won. Daishin Securities surpassed Hana Securities, which reported 273.1 billion won, although its ranking did not change, the increase in profit was significant.
Notably, the improvement in performance was sharp in the second quarter. Daishin Securities reported a consolidated operating profit of 359.9 billion won for the second quarter, a 165.2% increase from the same period last year. Pre-tax profit reached 320.7 billion won, up 196.0%, and net profit was 257.8 billion won, a 242.8% increase.
The increase in trading volume led to higher commission and credit income, while gains from the evaluation of held securities also boosted performance. Subsidiaries such as Daishin F&I and Daishin Savings Bank also experienced steady growth.
Alongside its performance growth, Daishin Securities is also expanding its capital base, which is essential for its leap into a major IB. As of the end of June, the company's consolidated equity capital stood at 4.557 trillion won, an increase of over 300 billion won from 4.250 trillion won at the end of March.
Daishin Securities has actively pursued capital expansion as it aims to enter the comprehensive financial investment business. By the end of 2023, its standalone equity capital was 2.8532 trillion won, falling short of the 3 trillion won requirement for designation as a comprehensive financial investment firm. Subsequently, in March 2024, it issued 230 billion won worth of redeemable convertible preferred shares (RCPS), meeting the 3 trillion won requirement, and was designated as the 10th comprehensive financial investment firm in the country by the Financial Services Commission in December of the same year.
Daishin Securities' next goal is to become a major IB. The company aims to enter the major IB sector and obtain approval for its issuance business by 2028. It has designated the period from this year until 2028 as a 'capital expansion period' to establish a foundation for growth, with plans to significantly enhance profitability by 2030. A company official stated that there are currently no specific plans for additional capital expansion.
Vice Chairman Yang is the grandson of the late Yang Jae-bong, the founder of Daishin Securities, and the son of Chairman Lee Eo-ryong of Daishin Financial Group. As the third-generation owner leading the group's growth strategy, Yang views entry into the major IB sector as a key task to elevate Daishin Securities' status.
With a sharp improvement in performance this year and equity capital rising to the mid-4 trillion won range, the strategy for becoming a major IB is gaining strength. The extent to which Daishin Securities can maintain profitability while narrowing the capital gap with large securities firms will likely determine the success of Vice Chairman Yang's 'major IB leap' strategy.
* This article has been translated by AI.
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