GF Securities Q3 revenue increased by 51.82% year-on-year, net profit surged by 86%, driven by investment and brokerage businesses | Earnings Report Highlights

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GF Securities’ Q3 operating income increased by 51.82% year-on-year, and net profit attributable to shareholders surged by 85.86% to 4.46 billion yuan. The growth was mainly driven by proprietary investment and brokerage business, with gains from changes in fair value soaring by 343.24% year-on-year, and net fee and commission income rising by 38.09% year-on-year. Notably, net income from brokerage business increased by 74.96%, indicating a significant increase in market activity.

On the 31st, GF Securities released its 2025 Q3 report:

The company achieved total operating income of 10.77 billion yuan for the quarter, up 51.82% year-on-year.Net profit attributable to shareholders was 4.46 billion yuan, a sharp increase of 85.86% over the same period last year.

Growth Driven by Investment and Brokerage Business

Looking at the cumulative data for the first three quarters, the company achieved a cumulative net profit of 10.93 billion yuan, up 61.64% year-on-year; cumulative total operating income was 26.16 billion yuan, up 41.04% year-on-year. The robust results were mainly driven by two core businesses: gains from changes in fair value (i.e., investment income) and net fee and commission income.

In the first three quarters this year, the company realized gains from changes in fair value of 4.29 billion yuan, a staggering increase of 343.24% compared with 968 million yuan in the same period last year. The financial report explained that this was mainly "due to changes in the fair value of financial instruments during the period," indicating the company’s proprietary trading business achieved great success.

Meanwhile, as a traditional pillar, net fee and commission income for the first three quarters reached 13.64 billion yuan, up 38.09% year-on-year. The increase in net commission income from brokerage business was the main contributor, reflecting more active market trading and the company’s competitive edge in this segment.

The company’s total asset size grew more than 25% compared to the end of last year, and multiple balance sheet items related to investment and financing recorded rapid growth.

Significant Balance Sheet Expansion

As of September 30th, the company's total assets reached 953.44 billion yuan, up 25.66% from 758.75 billion yuan at the end of 2024.

Balance sheet expansion was reflected in multiple items. On the asset side, "trading financial assets" surged by 45.47% compared to the end of last year. The financial report indicated this was primarily due to an increase in bond and other investment positions at period-end. On the liabilities side, "short-term borrowings" and "borrowings from other financial institutions" soared by 97.65% and 93.58%, respectively, while "trading financial liabilities" skyrocketed by 216.39%. The company previously disclosed that, as of August 31, the total new borrowings for the year had already accounted for 34.61% of net assets at the end of last year, evidencing an aggressive financing and expansion strategy.

At the end of the reporting period, the parent company's risk coverage ratio fell from 276.22% at the end of last year to 226.88%; the capital leverage ratio declined from 13.29% to 11.20%.

In addition, the ratio of self-owned equity securities and their derivatives to net capital rose from 31.55% to 48.23%, while that for non-equity securities and derivatives surged from 296.51% to 374.27%.

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