1. An Earnings Surprise: What Happened?

Korea Investment Holdings reported impressive Q1 2025 results with revenue of KRW 70.338 trillion, operating profit of KRW 5.856 trillion, and net profit of KRW 5.390 trillion. These figures exceeded market consensus by a remarkable 27% and 52%, respectively.

2. Reasons Behind the Earnings Surge

The strong performance was primarily driven by improved market conditions for the securities business, increased trading volumes, reduced losses from derivatives trading, and better performance in underwriting. The growth of the asset management division and expansion of overseas operations also contributed positively. In particular, the growth of the securities business in Southeast Asia and the accelerated entry into the US investment banking business are attracting attention as future growth engines.

3. Future Outlook

Korea Investment Holdings is expected to continue its positive growth trajectory, supported by continued earnings recovery in the securities business, stable financial soundness, and the pursuit of new businesses. However, continuous monitoring of potential risk factors such as the soundness of PF loans is necessary.

4. Action Plan for Investors

  • Short-term Investment: Consider a short-term investment strategy leveraging the positive momentum.
  • Long-term Investment: It is advisable to develop a long-term investment strategy by analyzing the competitiveness and growth potential of each business segment.
  • Risk Management: Continuously monitor risk factors such as PF loans, and pay attention to the impact of external factors such as macroeconomic variables and exchange rate fluctuations.