Mirae Asset Daewoo Reports 71.6% YoY Increase in 3Q Operating Profit... Overseas Subsidiaries Achieve Record High Performance

[Asia Economy Reporter Song Hwajeong] Mirae Asset Daewoo announced on the 12th that it recorded an operating profit of 294.2 billion KRW, a pre-tax net profit of 306.3 billion KRW, and a net profit of 231.0 billion KRW on a consolidated basis for the third quarter of this year. These figures represent increases of 71.6%, 59.8%, and 67.7%, respectively, compared to the same period last year.

Accumulated through the third quarter, operating profit reached 820.0 billion KRW, pre-tax net profit 872.3 billion KRW, and net profit 642.2 billion KRW, bringing the company one step closer to achieving the industry's first pre-tax profit of 1 trillion KRW. On a consolidated basis, controlling shareholders' equity stood at 9.5 trillion KRW.

In particular, the brokerage commission segment and overseas subsidiaries recorded record-high performances. Since the first quarter, following the COVID-19 pandemic, the rapid inflow of funds from individual investors into the stock market continued this quarter, breaking the previous quarter’s record for the highest brokerage commission revenue. Overseas subsidiaries also posted a pre-tax net profit exceeding 70 billion KRW, achieving a cumulative performance of 174.1 billion KRW. This surpasses last year’s full-year overseas subsidiary performance of 170.9 billion KRW within just three quarters of this year.

When broken down by business segment, the revenue proportions were 39.6% from brokerage commissions, 29.2% from investment income, 11.3% from corporate finance fees, 10.2% from interest income, and 9.7% from financial product sales commissions.

A Mirae Asset Daewoo official explained, "Although an unprecedented global market crisis was triggered by COVID-19, we were able to generate balanced results this quarter following the previous one through a stable business structure, including brokerage commission revenue driven by abundant liquidity, expanded profit contributions from overseas subsidiaries, solid investment income, and increased financial product sales commissions."

Looking at net operating income by segment, brokerage commission revenue was 232.4 billion KRW, up 179.4% year-on-year. Overseas transaction commission income, including overseas stocks, increased by 160.1% to 44.8 billion KRW. The balance of overseas stocks continued to rise, increasing by 2.9 trillion KRW this quarter to reach 14.3 trillion KRW, firmly establishing overseas transaction commissions as a new source of brokerage commission revenue.

Mirae Asset Daewoo’s total customer assets, including entrusted assets of 165.3 trillion KRW, amounted to 295.1 trillion KRW, an increase of 61.5 trillion KRW compared to the same period last year. The number of HNW (High Net Worth) customers with assets over 100 million KRW rose by 38.9% to approximately 216,000.

Financial product sales commission revenue increased by 18.5% year-on-year to 57.1 billion KRW, driven by a 47.6% increase in derivative-linked product issuance and a 25.1% increase in wrap account balances.

Pension balances also increased by 600 billion KRW, resulting in a total financial product sales balance of 129.9 trillion KRW, up 10.0% from the same period last year.

Investment income rose 12.7% to 171.2 billion KRW. A Mirae Asset Daewoo official stated, "Despite unfavorable operating conditions due to rising domestic market interest rates, we performed well by achieving increased profits compared to the previous year through proactive risk management, diversification of revenue bases via expanded overseas bond trading, and income from distributions and dividends generated by investment purpose assets."

Corporate finance fee income was 66.2 billion KRW, down 22.7% year-on-year. This year, Mirae Asset Daewoo led 17 deals as the lead underwriter, including with Mitogen and Kyochon, ranking first in the number of underwriting deals. Recently, it was selected as the lead underwriter for Krafton, considered the largest IPO next year.

This content was produced with the assistance of AI translation services.