Stock rally, overseas growth, SpaceX gains fuel record profit
Mirae Asset Securities has made history as the first South Korean brokerage firm to achieve a quarterly net profit exceeding 1 trillion won ($673 million), propelled by a robust domestic stock market rally and strategic overseas expansion initiatives.
For the first quarter, Mirae Asset reported impressive consolidated revenue of 14.43 trillion won and an operating profit of 1.38 trillion won. These figures represent significant year-on-year increases of 138.4 percent and 297.2 percent, respectively, showcasing strong financial performance.
The company’s net profit surged by 288 percent year-on-year, reaching 1.0019 trillion won. This landmark achievement solidifies Mirae Asset’s position as the pioneering local brokerage to surpass the 1 trillion won mark in quarterly net profit.
Capitalizing on the thriving domestic stock market, Mirae Asset’s global assets under management (AUM) expanded to 660 trillion won by the end of the first quarter, adding approximately 58 trillion won within three months. This growth trajectory continued, with AUM further escalating to 776 trillion won as of May 10.
Overseas subsidiaries were key drivers of this exceptional growth, delivering their strongest performance to date. First-quarter pretax profit from international units totaled 243.2 billion won, with an estimated annualized return on equity (after tax) of around 14 percent.
Specific successes include the Hong Kong unit, which posted a record quarterly pretax profit of 81.3 billion won, and the New York subsidiary, which contributed 83 billion won. Furthermore, wealth management client assets in pivotal emerging markets such as India, Vietnam, and Indonesia demonstrated consistent growth, reaching 78 trillion won by the end of March.
Mirae Asset’s principal investment division maintained its profitability for a fifth consecutive quarter, generating substantial valuation gains of 804 billion won. This robust performance highlights the company’s strategic pivot towards higher-yield investment opportunities, diversifying beyond traditional brokerage commission income.
A notable flagship principal investment, SpaceX, is anticipated to generate additional valuation gains for Mirae Asset upon its projected public listing by the end of the second quarter, according to company statements.
Separately, the brokerage successfully secured cornerstone investment opportunities in a Hong Kong-listed company, resulting in profits of 156 billion won during the first quarter.
Mirae Asset has articulated a compelling vision to evolve into a comprehensive global investment platform operator, offering brokerage services across both traditional and digital assets. The firm aims to transcend a purely wealth management-focused model, building an integrated investment platform that fully embraces the rapidly expanding digital asset landscape.
As part of this strategic shift, Mirae Asset significantly increased its stake in local crypto exchange Korbit to 92 percent in February, reinforcing its commitment to digital finance.
The brokerage also plans to launch an advanced mobile trading system in Hong Kong, designed to expand its global retail client base. In a progressive move, Mirae Asset’s Hong Kong unit received approval from the Securities and Futures Commission in April to provide digital asset trading services directly to retail investors.
Furthermore, Mirae Asset is actively pursuing the acquisition of a brokerage firm in the US to fortify its global investment platform capabilities. This initiative is strategically aligned with the anticipated acceleration of global capital inflows into the Korean stock market, driven by the introduction of omnibus accounts for foreign investors.
“We are committed to continuously identifying high-quality assets and innovative investment opportunities, while concurrently expanding our wealth management services and global investment platform to offer clients a broader spectrum of investment possibilities as a leading global investment manager,” stated an official from Mirae Asset.
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