Mirae Asset posts highest quarterly earnings since 2016 merger
Seoul-based brokerage house Mirae Asset Daewoo posted its highest quarterly earnings since 2017 during the April-June period this year on the back of expanded investment profits and stock trade commissions.
The company said in a regulatory filing on Aug. 6 that it has recorded 304.1 billion won ($257 million) in net profit in the second quarter, a 38.6 percent year-on-year jump.
It is the highest quarterly net profit since it merged with Mirae Asset Securities in December 2016, according to the company.
Operating profit came to 387.1 billion won during the second quarter, a 47.9 percent on-year increase.
“Exponential growth in domestic stock trades as well as an influx of capital to assets based on overseas countries led to an increase in commission fees,” the company said in a release.
“Success in investment on bonds in and outside of Korea, stocks and derivatives as well as solid growth of overseas corporations also contributed to the all-time high quarterly profit."
Mirae Asset Daewoo made 189.9 billion won out of commission fees during the April-June period, showing 32.5 percent quarter-on-quarter growth, largely thanks to a bullish market with retail investors going on a massive buying spree after the coronavirus peaked in March in Korea. Investment profits came to 319.8 billion won, recording a 479.2 percent growth compared to the previous quarter.
The brokerage firm’s overseas subsidiaries posted 58.8 billion won in net profit before tax, a 33 percent jump from the previous quarter. Mirae Asset Daewoo has 11 overseas operations with branches in Hong Kong and New York being the biggest.
Depending on the market, Mirae Asset Daewoo said it built different local strategies, ranging from brokerage businesses to wealth management and investment banks.
"In an unprecedented environment regarding Covid-19, Mirae Asset Daewoo will try to make differentiated earnings and continuous returns policies toward shareholders," the company said.
Mirae Asset Daewoo recently announced this year's third share buyback plan worth 113.4 billion won, slated to be completed by Oct. 30.
BY JIN EUN-SOO [firstname.lastname@example.org]