Mirae Asset Daewoo posted a record quarterly performance in the second quarter of this year on the back of the growth of profits from its foreign subsidiaries as well as investment banks (IB).
The foreign corporations recorded 87.2 billion won in the first half of this year alone, surpassing the 84.5 billion won in the first quarter of last year, as its pre-tax net profit surpassed 40 billion won in the second quarter.
Mirae Asset Daewoo said in a regulatory filing on Aug. 8 that its consolidated operating profit rose by 22.9 percent on-year to 261.8 billion won in the second quarter.
Sales reached 4.2 trillion won, up 4.8 percent from a year earlier. Pre-tax net profit rose 33.3 percent to 292.4 billion won and net profit rose 39.6 percent to 219.36 billion won over the same period of last year.
In particular, operating profit and pre-tax net profit rose 84.3 percent and 30.1 percent, respectively, from the previous quarter, renewing their biggest earnings in the second quarter after the merger that they had made in the first quarter.
“Hong Kong, London, India and L.A. corporations specialized in IB deal sourcing and investment business gained 3.4 percent on-quarter to 30.2 billion won, while Brazil, Indonesia and Vietnam corporations, which grew into major local securities firms there, posted 11.6 billion won in pre-tax profits,” the company said.
For the IB sector, its earnings (fee plus corporate credit profit) rose 31 percent on-quarter to 108.6 billion won amid the growth of all business-related sectors. It has stayed above 100 billion won for five consecutive quarters since the second quarter of last year.
The trading sector also saw its earnings rise 34.4 percent from the first quarter to 166.3 billion won as lower interest rates and a recovery in the size of issuing and repaying derivative linked securities added to its favorable performance.
The quarterly return on equity (ROE) also achieved double-digit growth by recording 10.19 percent (annualized). Regarding the outstanding performance recorded this time, the company said, "It presented the possibility of a change in its constitution as a global investment management company and the success of a new growth model."
"This performance is a reflection of the stable profit structure, and the fact that the quarterly earnings of foreign corporations exceeded 40 billion won consecutively is the proof that Mirae Asset Group's global business is gaining momentum," an industry source said.
