Mirae Asset Securities Reports Operating Profit of 543.8 Billion KRW in H1, Up 24% YoY

Mirae Asset Securities announced on the 8th that its consolidated operating profit for the first half of this year reached 543.8 billion KRW, a 24.0% increase compared to the same period last year. On a consolidated basis, the company recorded equity capital of 11.5 trillion KRW, pre-tax net profit of 509 billion KRW, and half-year net profit of 371.7 billion KRW.

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A representative from Mirae Asset Securities explained, "Contrary to market concerns about the business environment in the second quarter of this year, expectations of interest rate cuts in the second half were reflected, resulting in stable performance in asset management (WM), platform businesses such as pensions, and overseas operations."

The platform business recorded total customer deposits of 423 trillion KRW, including pension assets of 38 trillion KRW, overseas stock balances of 30 trillion KRW, and financial product sales balances of 194 trillion KRW. Overseas subsidiaries also strengthened their stable business operations, achieving the industry's highest pre-tax profit of 60 billion KRW in the first half.

In particular, regarding overseas operations, the New York branch recorded a 65.6% year-on-year growth in sales and trading (S&T), while the Vietnam and India branches grew by 26.5% and 245.6%, respectively, compared to the same period last year.

The India branch saw rapid growth in brokerage revenue, and the cumulative number of retail online brokerage accounts exceeded 1.5 million during the second quarter. Mirae Asset Securities expects that, along with Sharekhan in India, which is scheduled to be acquired within this year, these will become major future revenue sources. A Mirae Asset Securities official stated, "In emerging countries such as India, Vietnam, and Indonesia, we are demonstrating stable performance in the online brokerage business sector, while in advanced markets such as Hong Kong, New York, and London, we are showing rapid growth centered on S&T businesses like exchange-traded funds (ETFs). This will serve as a foundation for Mirae Asset Securities' next-level growth and significantly contribute to improving return on equity (ROE)."

Additionally, the value adjustments and revaluations of some investment assets due to the sharp rise in global benchmark interest rates since 2022 have affected Mirae Asset Securities' profitability. However, in the second quarter, valuation gains turned positive. If interest rate cuts begin in earnest in the future, the resilience of held assets is expected to be restored, leading to rapid profitability improvements alongside stable earnings from existing business operations.

Earlier, Mirae Asset Securities announced a shareholder return policy to be implemented over the next three years starting from the first quarter of this year. During the first half of this year, the company repurchased and canceled 10 million shares each (reflected in the 2023 shareholder return ratio) and disclosed the repurchase and cancellation of 10 million common shares yesterday. The value-up disclosure is planned for the third quarter.