Mirae Asset enjoys earnings surprise in Q2

NH, Shinhan suffer setback in earnings

By Kim Bo-eun

Mirae Asset Daewoo's net profits for the second quarter of this year exceeded 200 billion won, surpassing market expectations.

The securities firm's investment banking sector and earnings from overseas subsidiaries drove the growth in net profit, the company said.

Mirae Asset Daewoo posted 219.4 billion won in net profit in the second quarter, a 39.6 percent growth from the same period a year earlier, well above the market consensus of around 170 billion won, which is similar to its first-quarter earnings.

Mirae Asset recorded over 200 billion won in net profit in six quarters since the first quarter of 2018.

The company's net profit for the first half of this year is 387.6 billion won, the greatest half-yearly figure since Mirae Asset merged with Daewoo Securities in 2017.

Net profit from its investment banking sector services including advising in M&As came down to 146.2 billion won.

Net profit from overseas subsidiaries renewed the first quarter's record, amounting to 44.8 billion won.

“Subsidiaries in Hong Kong, London, India and Los Angeles that specialize in IB deal sourcing and investment saw their net profits grow,” the company said.

Net profits from subsidiaries in Brazil, Indonesia and Vietnam also contributed 11.6 billion won.

“Earnings of overseas subsidiaries for the first half of the year have already exceeded last year's net profit of overseas subsidiaries,” the company said.

Net profit from trading came down to 166.3 billion won, a 34.4 percent growth from the first quarter.

It is yet to be seen whether Mirae Asset will top the list of securities companies' earnings for the second quarter, as Korea Investment and Securities has yet to unveil its earnings.

Korea Investment and Securities topped the list from the third quarter of 2018 to the first quarter of this year. It marked 218.6 billion won in net profit in the first quarter, becoming the only brokerage that made over 200 billion in net profit for the period.

Meanwhile, Meritz Securities' net profit for the second quarter amounted to 145.8 billion won, up 33.8 percent from the same period a year earlier.

KB posted a net income of 93.1 billion won, a 20.8 percent year-on-year growth, while Hana's net income rose by 40 percent to 90.3 billion won.

However, NH and Shinhan Investment saw their net profits drop by 7.9 percent and 16.2 percent, respectively, to 107.6 billion won and 71.9 billion won.