Mirae Asset Securities Achieves Cumulative Operating Profit of 755.7 Billion KRW Through Q3 This Year

[Asia Economy Reporter Ji Yeon-jin] Mirae Asset Securities announced on the 10th that its cumulative operating profit up to the third quarter of this year reached 755.7 billion KRW.

The preliminary key performance for the third quarter of this year showed a consolidated operating profit of 149.8 billion KRW, down 62.3% compared to the same period last year, and a net profit of 104.4 billion KRW, a decrease of 69.3%.

As of the third quarter, the equity capital stood at 10.99 trillion KRW, increasing by approximately 900 billion KRW in about a year since surpassing 10 trillion KRW in August last year. Based on the industry's largest equity capital scale, the company plans to secure stable financial soundness and leap forward as a global IB. The net capital ratio (NCR), which showed a high financial soundness of 1995.4% in the second quarter, is also expected to be maintained stably.

The third quarter performance is analyzed to have relatively held up by proactively diversifying its business structure and investment portfolio despite unfavorable domestic and international environments such as the U.S. Federal Reserve's consecutive giant steps and prolonged instability due to the Ukraine crisis. In terms of operating profit and loss, through thorough risk management and conservative asset operation, it recorded a relatively favorable 43 billion KRW even amid unstable market conditions.

Moreover, despite the market situation slowing down to an average daily trading volume of less than 15 trillion KRW due to the base interest rate hikes and increased market volatility causing outflows of individual and institutional stock market funds, overseas stock balances showed a continuous upward trend, increasing by 1.4 trillion KRW from the previous quarter to 22.5 trillion KRW. Pension balances recorded 25.4 trillion KRW, generating stable profits this quarter as well through a fee-based revenue structure. Corporate finance fee income reached 52.9 billion KRW, and total IB revenue achieved 78.4 billion KRW.

Overseas subsidiaries recorded a pre-tax net profit of 28.7 billion KRW in the third quarter, achieving favorable results by securing stable profits as local comprehensive securities firms in Vietnam, Indonesia, and other countries despite the global stock market contraction caused by global tightening policies.

A Mirae Asset Securities official stated, “The operating environment for the remainder of 2022 is expected to be unfavorable due to ongoing unstable international conditions and the continued trend of interest rate hikes,” adding, “However, we will do our best to generate stable profits through thorough risk management even in a market environment with increased volatility.”

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