Mirae Asset Daewoo Securities logs record-high quarterly net profit

Headquarters of Mirae Asset Financial Group in central Seoul / Courtesy of Mirae Asset Finnacial Group

By Anna J. Park

Mirae Asset Daewoo Securities reported its strongest-ever quarterly net profit of 304 billion won ($257 million) during the second quarter, up 38.6 percent, year-on-year.

On a quarter-on-quarter basis, the country's top-tier brokerage saw a whopping 184 percent increase in terms of net profit during the given period. Mirae Asset Daewoo generated an operating profit of 387.1 billion won for the three months ended June 30, a jump of nearly 48 percent year-on-year, or 179.2 percent quarter-on-quarter.

This is a historically high quarterly profit after Mirae Asset Securities acquired Daewoo Securities back in 2016 and renamed it Mirae Asset Daewoo.

“Our brilliant second-quarter performance was largely thanks to increased brokerage commissions coming from massively expanded stock trading volume. A solid increase in operating financial investment products such as domestic and overseas bonds and over-the-counter (OTC) derivatives, as well as stable growth from overseas branches also contributed,” an official from Mirae Asset Daewoo said.

The brokerage earned 58.8 billion won in profit from its overseas businesses, up 33 percent from the same period last year.

By the business divisional breakdown, brokerage commissions stood at 189.9 billion won, an increase of 32.5 percent from the previous quarter. Profits from operating various financial investment products particularly saw a huge jump of 479.2 percent from the previous quarter, as it earned 319.8 billion won from the area.

“As global stock markets rebounded, key indices also increased, while credit spread has been reduced. The firm's appropriate moves in handling financial products like local and overseas bonds, derivatives and prop trading contributed to logging of the all-time high performance in the area,” the official said.