"Strong in Crisis"... Mirae Asset Securities' "Surprise Earnings" Amid Stock Market Slump

[Asia Economy Reporter Ji Yeon-jin] Amid ongoing stock market sluggishness this year due to global inflation and U.S. tightening, Mirae Asset Securities posted surprising earnings in the second quarter. While most domestic securities firms recorded large losses from bond price declines during this period, Mirae Asset is analyzed to have offset bond valuation losses by reflecting investment asset revaluation gains.

According to Mirae Asset Securities on the 10th, the company recorded consolidated operating profit of 321.3 billion won in the second quarter, a 12.9% increase compared to the previous quarter. Although this is a 26% decrease from the same period last year when the company achieved record-high earnings, it is an 'earnings surprise' exceeding market expectations by more than 30%. Due to a decline in domestic trading volume, total brokerage commission revenue on a separate basis was 133.8 billion won, down 7.6% from the previous quarter, but thanks to securing distribution and dividend income from investment assets, the asset management division earned 110 billion won.

The scale of investment assets expanded from 7.4 trillion won in the first quarter to 8.2 trillion won. This is attributed to increased investments in Seoul Yeouido IFC and U.S. real estate projects (PE)(PF). Yoon Yoo-dong, a researcher at NH Investment & Securities, stated, "It is understood that they are focusing on sales to expand overseas transactions." Jung Min-ki, a researcher at Samsung Securities, said, "While the massive equity investment exceeding 8 trillion won and the potential increase in book value volatility due to market environment changes remain ongoing concerns for Mirae Asset Securities, the distribution and dividend income generated from these asset groups are observed to contribute to stabilizing recurring operating profits. Additionally, the continuation of shareholder return policies, including expectations for further share buybacks in the second half, is viewed positively."

A representative from Mirae Asset Securities said, "It is significant that we achieved a stable profit and loss structure even in a difficult environment by thoroughly managing risks and utilizing maximum capital capacity based on a differentiated business model," adding, "We plan to continue shareholder return activities such as share buybacks and cancellations to enhance shareholder value."

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