Mirae Asset Securities’ overseas business is taking on a larger role in its earnings profile, with foreign subsidiaries posting a record pretax profit of nearly 300 billion won ($207 million) through the third quarter, representing 23 percent of total company profit, the highest to date.
“Supported by robust flow trading operations in advanced markets and expanding wealth management businesses in emerging markets, including Vietnam, Indonesia and India, the company maintained solid recurring profits through the third quarter,” the company said.
The overseas units generated 299 billion won in pretax profit in the January-September period. Mirae Asset said it plans to further strengthen the business foundation of its global network by enhancing independent governance, upgrading risk management systems and reinforcing IT security across local entities.
Meanwhile, Mirae Asset Securities posted 1.31 trillion won in pretax profit and 1.08 trillion won in net profit on a cumulative basis through the third quarter.
For the third quarter alone, it logged 447 billion won in pretax profit and 344 billion won in net profit, each gaining 26 percent and 19 percent from the same period last year.
Both the brokerage and wealth management divisions delivered record-high quarterly performances in the third quarter.
Brokerage commission income surged 22 percent from the previous quarter to 264 billion won with increased trading in the upbeat global equity markets, while commission income from financial product sales climbed 21 percent quarter-on-quarter to 91.8 billion won.
In terms of consolidated operating profit, however, Mirae Asset Securities logged 223 billion won in the third quarter, marking a 39.9 percent drop year-on-year.
The company explained the decline was largely due to a change in accounting treatment regarding its sale of the Pangyo Tech 1 Tower in October.
"The decline in the company’s third-quarter operating profit was not driven by weaker business performance, but was rather a result that reflects changes in accounting treatment under the International Financial Reporting Standards," the company explained.
silverstar@heraldcorp.com
