Credit Suisse Korea, the South Korean operation of Switzerland-based financial company Credit Suisse Group AG, posted the largest net profit among foreign investment banks operating in Seoul last year, retaining its top position for a fourth consecutive year thanks to its strong corporate finance business.

According to the Korea Financial Investment Association on Monday, Credit Suisse Korea raised 131.3 billion won ($123.4 million) in net profit last year, becoming the country’s top foreign investment bank. The local unit of J.P. Morgan Chase & Co. came in second after raking in 76.4 billion won in net profit last year, followed by another big foreign investment bank UBS AG’s Korean operation that earned 71.7 billion won. Among local brokerages, Korea Investment & Securities Co. posted the largest net profit of 482.3 billion won last year.

Credit Suisse Korea’s equity capital was 585.5 billion won - similar to local mid-size brokerage IBK Securities Co. with 588.4 billion won - but its return on equity (ROE), a key measure of profitability, was 23.3 percent as of last year, becoming one of the only two brokerages among all securities firms in Korea with 100 billion won or more in equity capital with 20 percent or higher ROE. The other brokerage is UBS with 24.1 percent.

The strong performance by Credit Suisse Korea is largely attributed to its corporate finance business, such as arranging mergers and acquisitions.

Last year, Credit Suisse Korea led a number of mega deals such as SK Hynix and Bain Capital consortium’s acquisition of Toshiba’s memory-chip business, SK Group’s acquisition of silicon wafer manufacturer LG Siltron, DoubleU Games’ acquisition of Double Down Interactive LLC, and CJ Korea Express’ acquisition of Vietnam’s Gemadept Logistics.

An unnamed official from Credit Suisse Korea said the company strategically seeks to create long-term relationship with its clients to make them return to the bank for more work. The financial company also strives to satisfy diverse overseas investment needs of local institutional investors ranging from M&A deals to global bond and property investments, the official added.

It also continued to show solid performance in traditional equity sales and trading and other alternative investment products to institutional investors.

By Han Woo-ram and Lee Eun-joo

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]