Fire, securing new contracts and soundness management
Focus on securities and conservative risk management
[서울=뉴시스] Reporter Park Eun-bi = Meritz Financial Group announced on the 14th that its net profit for the first half of this year, based on consolidated financial statements, increased by 6.8% year-on-year to KRW 1,203.3 billion.
During the same period, sales and operating profit also increased by 1.6% and 4.9% to KRW 30,663.8 billion and KRW 1,597.9 billion, respectively. Total assets on a consolidated basis are KRW 95,918.5 billion, and the return on equity (ROE) is 34.0%.
Internally, the group believes that such performance is due to the continued growth in net profit of Meritz Fire & Marine Insurance and Meritz Securities.
By company, Meritz Fire & Marine’s operating profit and net profit on a separate basis in the first half of the year increased by 23.0% and 25.2% year-on-year to KRW 1,133.4 billion and KRW 839 billion, respectively.
As of the second quarter, they increased by 22.0% and 25.9% to KRW 578.7 billion and KRW 434.3 billion, respectively. This is the result of focusing on profitability-oriented sales growth and long-term soundness management by securing high-quality new contracts.
Meritz Securities’ consolidated operating profit and net profit in the first half were 443.1 billion won and 361.3 billion won, respectively, down 23.0% and 18.0% from the same period last year. However, as of the second quarter, they increased by 2.3% and 1.9% to KRW 203.5 billion and KRW 161.5 billion, respectively.
The company explained that it has continued its efforts to generate solid profits through differentiated risk management amid difficult conditions such as the expansion of financial market instability and the real estate market recession.
By business sector, commissions and interest income in the corporate finance (IB) sector drove the overall performance, while the sales and trading (S&T) sector focused on minimizing losses by preemptively managing limits on CFDs.
An official from Meritz Financial said, “Meritz Fire & Marine will focus on cost efficiency and profitable sales expansion. Meritz Securities will focus on strengthening risk management and building a safe profit portfolio from a more conservative perspective, taking into account uncertain market conditions.” “he said.
◎Sympathy Press Newsis email@example.com