Brokerages affiliated with financial holding groups posted about 1.41 trillion won in net profit in the second quarter this year, supported by a rise in stock market trading value in South Korea. NH Investment & Securities and KB Securities set quarterly record results, while Shinhan Investment and Hana Securities continued to grow on the back of expanding brokerage revenue.

As of July 24, the financial investment industry tallied the combined second-quarter net profit of five such brokerages - NH Investment & Securities, KB Securities, Shinhan Investment, Hana Securities and Woori Investment & Securities - at about 1.41 trillion won.

NH Investment & Securities posted second-quarter operating profit of 681.2 billion won and net profit of 489.4 billion won. That marked increases of 111.6 percent and 90.5 percent, respectively, from the same period a year earlier. It set a quarterly record again, following the first quarter.

Its first-half controlling shareholder net profit rose 107.6 percent from a year earlier to 965.2 billion won. Even growth across major businesses, including brokerage, sales of financial products and investment banking, drove the results.

KB Securities posted, on a consolidated basis, second-quarter operating profit of 600.6 billion won and net profit of 450.8 billion won. That was up 175.5 percent and 180.6 percent, respectively, from the same period a year earlier.

First-half operating profit came to 1.05 trillion won and net profit to 801.0 billion won, the highest on record for a half-year. Growth in wealth management, investment banking, capital markets and institutional sales supported the earnings improvement.

NH Investment & Securities and KB Securities posted combined second-quarter net profit of 940.2 billion won. The two companies accounted for about 67 percent of the total net profit of all five brokerages.

Shinhan Investment's second-quarter net profit rose 0.3 percent from the previous quarter to 289.3 billion won. First-half net profit increased 123.1 percent from a year earlier to 577.7 billion won.

A rise in stock brokerage commissions amid more active domestic stock trading, along with improved sales of financial products and better product management income, affected the increase in earnings.

Hana Securities said, based on regulatory filings, its second-quarter consolidated operating profit rose 783.3 percent from a year earlier to 203.7 billion won. Consolidated net profit increased 442.1 percent to 168.7 billion won.

First-half net profit rose 155.7 percent from a year earlier. An expansion in brokerage fees and improved performance across all business divisions, including investment banking, had an impact.

Woori Investment & Securities posted second-quarter net profit of 11.0 billion won, down 21.4 percent from the previous quarter.

Net operating revenue rose 8.6 percent from the previous quarter to 76.0 billion won, but bad-debt costs jumped 88.9 percent to 17.0 billion won, dragging down net profit.

Cumulative first-half net profit rose 47.1 percent from a year earlier to 25.0 billion won. Non-interest income increased 110.0 percent to 84.0 billion won, and retail customers rose 15.8 percent to 781,000.

The five brokerages' first-half net profit totalled 2.64 trillion won on a simple sum: NH Investment & Securities with 965.2 billion won, KB Securities with 801.0 billion won, Shinhan Investment with 577.7 billion won, Hana Securities with 273.1 billion won, and Woori Investment & Securities with 25.0 billion won.

Improved first-half results were commonly driven by a rise in brokerage income as stock market trading value expanded. But with sharp swings in the stock market continuing, second-half performance is expected to diverge significantly by brokerage depending on whether trading value holds up, profit and loss from product management, and risk management results.