[E-Daily Reporter KIM YOON-JEONG ] DB Securities forecast that SamsungSecurities(016360)will post second-quarter earnings that exceed market expectations, driven by increased trading volume amid a strong stock market and growth in its wealth management (WM) division. The firm maintained its “Buy” investment rating and target price of 163,000 won.

On the 13th, Na Min-wook, an analyst at DB Securities, predicted, “SamsungSecurities’ second-quarter net income attributable to controlling shareholders is expected to reach 524.3 billion won, a 123.4% increase year-over-year, exceeding expectations by 13.2%.”
Brokerage commissions are projected to rise 27.2% quarter-over-quarter, driven by increased trading volume resulting from strong stock market performance. Wealth management (WM) commissions are also expected to grow 6.4% as strong sales of financial products continue. In contrast, investment banking (IB) commissions are estimated to decline 3.7% due to the absence of major deals and ongoing refinancing of existing project financing (PF) deals.
Trading and other gains and losses are projected to rise 0.4% quarter-over-quarter, as CARRY income offsets bond valuation losses resulting from rising interest rates. Na Min-wook, an analyst at DB Securities, explained, “As high-net-worth individuals increasingly participate in the stock market, large securities firms with strong wealth management (WM) businesses are showing a clear trend of improving performance.” He added, “Amid rising stock prices and growing demand for target-date funds and advisory-type WRAP accounts, the number of high-net-worth clients (with assets of 3 billion won or more) has surpassed 10,000.”
He continued, “In particular, given the KOSPI-led market conditions, the number of orders placed by high-net-worth individuals at branch offices has increased, and we estimate that market share (M/S) based on contract value is gradually rising.”
Researcher Na assessed, “We believe this is a period in which the strengths of our wealth management (WM) business, accumulated over time, are clearly coming to the fore,” noting, “It is a business structure that fully capitalizes on the benefits of the rising stock market and increased trading volume.”
He went on to forecast, “While the partnership with IBKR will not contribute significantly to earnings immediately, a gradual increase in trading volume is expected as we expand our asset classes, such as exchange-traded funds (ETFs).”
He also noted, “Given the need to maintain capital to qualify for an Integrated Investment Account (IMA) in the future, it is difficult to expect an aggressive expansion of the dividend payout ratio this year,” but added, “Nevertheless, a valuation of a 12-month forward price-to-book ratio (PBR) of 1—compared to a dividend yield in the 5% range and a return on equity (ROE) in the high 10% range—is highly attractive.”