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Mirae Asset Daewoo racked up a record profit during the second quarter of this year on the back of brisk transactions in the domestic stock market this year. Photo courtesy of Mirae Asset Daewoo

Top-tier brokerage sees operating profit jump 47.9%

Mirae Asset Daewoo saw its second-quarter operating profit rocket 47.9 percent to 387.1 billion won ($327 million) from a year ago, which is the highest quarterly figure.

The country’s largest brokerage house announced August 6 that its net profit amounted to 304.1 billion won ($257 million) during the April-June period for a 38.6-percent increase year-on-year.

The operating profit was far higher than the market consensus, which was in the neighborhood of 220 billion won ($190 million).

The market expected that Mirae Asset Daewoo had chalked up solid results in the second quarter. And its performances were much better than the average estimate,” a Seoul analyst said.

The brisk transactions of individual investors appear to boost the performance of Mirae Asset Daewoo. Its profitability is expected to remain strong throughout this year.”

The country’s stock market was hit hard by the outbreak of the novel coronavirus early this year. In March, the benchmark KOSPI fell below 1,500 points.

Back then, retail investors stepped up to purchase shares, betting heavily on recovery from COVID-19. The strategy worked as the KOSPI surged thereafter to reach 2,300 this week.

Their aggressive investments helped domestic brokerages improve their bottom lines.

Exploits in global businesses

In a regulatory filing, Mirae Asset Daewoo said that the increased transactions on the Korean stock market also buoyed its second-quarter results.

Unlike its competitors, however, the Seoul-based outfit secured a unique revenue source _ its offshore affiliates netted 58.8 billion won ($50 million) in profit during the second quarter.

During the first six months of this year, the figure topped 100 billion won for the first time among securities companies here.

Mirae Asset Daewoo, which is co-headed by Executive Vice Chairman Choi Hyun-man and Executive Vice Chairman Cho Ung-kee, said that it will further jack up its profits in the overseas markets by expanding the business horizon across the board.