Mirae Asset Securities Racks Up Operating Profit of 370.8 Bln Won in Q3

Chairman Park Hyeon-joo of Mirae Asset Group. (Photo: Mirae Asset Group)

Mirae Asset Securities posted operating profit of 370 billion won in the third quarter of 2024, the company announced recently.

Mirae Asset Securities said on Nov. 7 that it racked up operating profit of 914.5 billion won, pre-tax profit of 865.8 billion won, and net profit of 661.8 billion won in the first three quarters of this year.

For the third quarter, its operating profit stood at 370.8 billion, its pre-tax profit 356.8 billion won and its net profit 290.1 billion won.

Despite the presence of variables that could amplify volatility in the financial market, such as the US Federal Reserve’s big cut of 50 basis points in policy interest rates for the first time in four years, and six months and the US presidential election, the company generated stable profits in all business segments at home and abroad by quickly responding to changes in internal and external environments.

In particular, Mirae Asset Securities’ overseas subsidiaries posted pretax profit of 50.8 billion won in the third quarter, resulting in cumulative pretax profit of 110.8 billion won for the year.

Mirae Asset Securities’ overall profitability including its ROE improved through stable and balanced global businesses, with stable performances based on localization and digital platforms in emerging markets such as India and Vietnam, and the growth of its S&T business in developed markets such as Hong Kong, New York, and London.

Mirae Asset Securities India ranked ninth among online brokerage firms and 15th among all brokerage firms as of August. It surpassed 2 million retail accounts in October.

Once the acquisition of Indian securities firm Sharekhan is wrapped up by the end of the year, the company will aim to become the fifth largest brokerage firm in India with approximately 5 million retail accounts within the next five years.

In addition, Mirae Asset Group will establish WealthSpot, an AI algorithm-powered investment firm in New York in November.

Mirae Asset Securities will actively collaborate with WealthSpot’ to expand its management and asset allocation capabilities through AI and step up its efforts to lower service fees in the future.

The steady quantitative growth of pension and overseas equity balances also stood out, with pension assets exceeding 40 trillion won and overseas equity balances surpassing 31 trillion won.

Mirae Asset Securities’ trading division posted pre-tax profit of 34.07 billion, up 19 percent from the previous quarter on the back of strong fixed income performance following interest rate cuts in the United States and Korea. Its IB division accounted for more than 17 percent of the lead management for IPOs.

Breaking through Milestone of 40 Trillion Won in Pension Assets

Mirae Asset Securities has become the first in the securities industry to reach 40 trillion won in pension assets.

According to Mirae Asset Securities on Nov. 6, the company’s pension assets were 27.7 trillion won in retirement pensions and 12.3 trillion won in individual pensions. It grew about five-fold in eight years, ranking Mirae Asset Securities in the securities industry.

Recently, Mirae Asset Securities became the first company in the industry to surpass 10 trillion won in individual retirement plan (IRP) assets, winning the pension triple crown of 10 trillion won each in individual pension, defined contribution (DC) and IRP assets.

The company also fared well in returns. In the third quarter of 2024, both DCs and IRPs were among the top performers in public disclosures of pension fund contributions and return disclosure.

Mirae Asset Securities achieved these results by implementing two strategies focused on contributing to successful asset management and a comfortable retirement.

First, it provided customized products and portfolio services to meet the needs of its clients by boosting long-term returns.

Secondly, it provided consulting services to help people prepare for happy retirement lives.

In particular, Mirae Asset Securities expects that money’s moves to pensions for investment will go smoothly as pension transfers will be possible beginning from the end of October.

Mirae Asset Securities has been striving to provide specialized services through pension portfolio services (MP subscription, robo-advisor services, and personal pension wraps).

From mid-November, Mirae Asset Securities will provide the same personalized design as retirement pensions (DCs/IRPs) through M-Stock.

It will also provide customized designs in individual pensions as a robo-advisor service.