NH INVESTMENT & SECURITIES CO., LTD. – Company Intelligence Brief

1. Business Overview

NH Investment & Securities is a major Korean financial services company operating as a full-service brokerage and investment house. The company's business model centers on traditional securities brokerage, asset management, and proprietary trading operations.

[TRANSLATION NOTE] The filings contain Korean terminology for business segments that may include brokerage, investment banking, wealth management, and trading divisions, though specific segment breakdowns were not detailed in the provided data.

Based on the balance sheet composition, the firm maintains substantial trading inventories with financial assets measured at fair value through profit/loss (FVTPL) reaching KRW 32.1 trillion in 2024, alongside KRW 8.2 trillion in fair value through other comprehensive income (FVOCI) assets and KRW 19.3 trillion in amortized cost financial assets. Customer deposits (예수부채) totaled KRW 8.0 trillion, indicating a significant retail brokerage presence.

2. Financial Trend

The company demonstrates strong positive momentum across key metrics:

• Asset Growth: Total assets expanded 10.1% year-over-year from KRW 56.7 trillion (2023) to KRW 62.4 trillion (2024), representing a three-year CAGR of approximately 8.2% from the KRW 53.4 trillion base in 2022.

• Profitability: Net income surged 24.1% to KRW 686.6 billion in 2024 from KRW 553.0 billion in 2023, more than doubling the 2022 result of KRW 302.9 billion. Pre-tax income reached KRW 924.9 billion, up 28.3% year-over-year.

• Revenue Drivers: Net interest income grew modestly to KRW 801.8 billion (2024) from KRW 791.3 billion (2023), while interest income increased 7.9% to KRW 1.74 trillion, suggesting margin compression as funding costs rose.

• Leverage: Borrowed liabilities (차입부채) increased sharply by 29.2% to KRW 24.4 trillion from KRW 18.9 trillion, driving the debt-to-equity ratio from approximately 6.4x to 6.7x. Total liabilities grew 10.6% to KRW 54.3 trillion while equity strengthened to KRW 8.1 trillion (13.0% equity-to-assets ratio).

3. Ownership Structure

Specific ownership data was not included in the provided DART filing extracts. The company's stock code is 005940 on the Korean exchange, but major shareholder details, controlling entity information, and foreign ownership percentage require additional disclosure documents not present in this dataset.

[TRANSLATION NOTE] Standard Korean business registry filings would typically contain detailed ownership schedules (주주명부) that are not included here.

4. Key Risks

Leverage and Market Exposure Risk: The firm's borrowed liabilities jumped KRW 5.5 trillion in a single year, representing a 29% increase that significantly outpaced equity growth of 6.6%. With approximately 87% of assets funded through liabilities and a debt-to-equity ratio near 7x, the company faces material refinancing and interest rate sensitivity risks.

Trading Book Concentration: FVTPL assets represent 51% of total assets (KRW 32.1 trillion), creating substantial mark-to-market volatility exposure. Any adverse market movements could produce significant losses that impact capital adequacy under Korean Financial Services Commission regulations.

5. Investment Consideration

NH Investment & Securities offers exposure to Korea's capital markets through a growing, profitable platform, but investors must weigh 127% net income growth over two years against escalating financial leverage and concentrated trading book risk.