1. DB Securities H1 2025 Performance: What Happened?

DB Securities reported consolidated pre-tax profit of KRW 58.5 billion (+15% YoY) and net profit of KRW 40.1 billion (+10% YoY) for H1 2025. However, standalone pre-tax profit decreased to KRW 38.8 billion (-19% YoY) and net profit to KRW 31.1 billion (-14% YoY).

2. Drivers of Performance: Why These Results?

The strong consolidated performance is attributed to overall growth in the financial investment industry and the company’s diversified business portfolio. Increased commission revenue, gains from financial instrument valuation/disposal, and interest income were key drivers.
Conversely, the decline in standalone performance is primarily due to weaker earnings in the Wealth Management (WM) segment, reflecting market volatility and profitability changes in specific business areas.

3. Outlook and Investment Strategy: What’s Next?

DB Securities maintains positive fundamentals with strong consolidated earnings. Future corporate value growth is expected, depending on market conditions and the company’s ability to manage potential risks. However, continued monitoring of the factors contributing to weaker standalone performance and the DB Savings Bank lawsuit is crucial.

4. Investor Action Plan

  • Monitor DB Securities’ business diversification strategy and the recovery of the WM segment.
  • Track the progress of the DB Savings Bank lawsuit and assess its potential impact.
  • Develop an investment strategy considering DB Securities’ earnings volatility in response to changes in macroeconomic indicators.