HONG KONG: Net profit of Haitong International Securities (0665) nearly doubled last year to HK$1.02 billion, driven by more listings and bond issuances.
Deputy chairman Lin Yong said mainland brokers might be granted a banking license in the future if the regulator allows lenders to get brokerage licenses.
It would allow brokers to tap into higher- end wealth management business to further boost their income.
The overseas unit of the mainland’s second-largest brokerage, Haitong Securities (6837), saw its revenue jump 65 percent to HK$2.71 billion.
About 43 percent of revenue was derived from brokerage and margin financing, which rose nearly 50 percent to HK$1.18 billion from a year earlier.
Executive director Wilson Hui Yee expects commission to grow another 50-100 percent this year.
This will be driven by the solid customer base for trading both in the Shanghai-Hong Kong Stock Connect and in the upcoming Shenzhen link, expected to be launched in the second half of this year.
The transaction volume drawn by the trading link is five times higher than that in the local market, Lin said.
Commission from securities, futures and options trading rose 20 percent last year to HK$528 million. Revenue from corporate finance, comprised mainly of underwriting and placing activities, more than doubled to HK$396.3 million.
Haitong International Securities completed 15 initial public offerings and 21 bond issuances last year.