Focus on Investment Banking

Good Morning Shinhan Securities celebrates 5th anniversary of merger geared up for IB activities

"In the investment banking sector, Good Morning- Shinhan Securities Co. will generate 100 billion won worth of business to firm up its advanced type business structure,"declared President Lee Dong-girl on the occasion of the 5th anniversary of the two securities firms merger on Aug. 5. Good Morning Securities and Shinhan Securities merged five years to cut up a larger share of the securities market in the country.
President Lee said he sees the company is making a progress in firming up its work on building a futuristic infrastructure, adding that the company's H1 revenue amounted to 313.9 billion won, up 27 percent from the same period last year and operating profit posted 108.3 billion won, up 37 percent year-on-year including 53.7 billion won in the IB sector, 7 times over the same period last year. The figure accounted for 17 percent of the company's total operating profit.
He attributed the excellent record to the efforts for diversification of revenue sources and the synergy with Shinhan Bank,
an affiliate of the Shinhan Financial Group.
President Lee said the company will conclude strategic tie-ups with three financial organizations in countries in the Middle East and Northeast Asia this year, not just formal types, but with real objectives of strengthening the company's overseas operation capacities.
Following President Lee's arrival at the company in February, the company invested in real estate projects in Kazakhstan, followed by an investment in bio-diesel raw material project in Laos, and a tie-up with BNI Securities in Indonesia, a signal that the president is all out to focus on overseas projects to expand its global operation. At the present time, the company has tie-ups with four overseas securities firms and 3 wholly owned subsidiaries in London and Hong Kong and plans to set up another subsidiary in Shanghai to expand its IB operation to China.
The Shinhan Financial Group's H1 financial report shows that its operating revenue during the period came to 12.736 trillion won, up 21.7 percent from the same period last year and net income 1.06 trillion won, up 55.3 percent from a year earlier. Operating revenue in the Q2 amounted to 6.113 trillion won, down 7.7 percent from the preceding quarter but up 21.7 percent from a year earlier. Net income in the Q2 amounted to 686.6 billion won, up 16.3 percent from the same period last year and down 28.5 percent from the previous quarter. Quarterly net income for Q1 amounted to 959.8 billion won.
In the meantime, operating revenue of Shinhan Bank recorded 8.54 trillion won in the H1, up 38.2 percent from the same period last year, while net income amounted to 1.5 trillion won, up 113.5 percent from a year earlier. The major affiliate of the financial group recorded over 4 trillion won in operating revenue in the Q2, up 5.8 percent from the same period last year, but down 9.6 percent from the previous quarter. Net income in the Q2 posted over 710 billion won, up 36.7 percent from a year earlier, but down 14.2 percent compared to the preceding quarter.
LG Card, in the meantime, posted operating revenue of 1.4 trillion won in the H1, up 0.5 percent from the same period last year. Its net profit amounted to 1.2 trillion won, up 87 percent from a year earlier. Its Q2 operating revenue amounted to 679.1 billion won, down 5.9 percent from the previous quarter, while its operating income amounted to 352.2 billion won, up 2.1 percent from the preceding quarter, but up 22.7 percent from a year earlier.
Good Morning Shinhan Securities was established in August, 2002 through the merger of Good Morning Securities and Shinhan Securities. Shinhan Financial Group became, and is now, the major shareholder of GMSH. This merger will bring significant synergy effects to the company's overall business operations, as well as solidifying the ownership and management structures.
Because of its advanced management techniques, GMSH is being watched with keen interest as a rising securities company in the domestic market. Currently, the company is one of the top 6 in the Korean securities industry, and ithas unlimited future potential created by the vast array of synergy effects the company enjoys under the umbrella of its holding company. SHFG has been focused on stability and profitability as its top concerns. GMSH will put forth its best efforts toward maximizing shareholders'value as well as fulfilling its social responsibilities as a corporate citizen. nw

President Lee Dong-girl of Good Morning Shinhan Securities Co.