South Korea’s top securities company Mirae Asset Daewoo posted a 21.8 percent increase in operating profit in the second quarter and largest-ever profit in the first half thanks to brisk investment banking (IB) business and overseas operations.
Mirae Asset Daewoo announced in a regulatory filing on Wednesday that it raked in 213 billion won ($190 million) in operating profit on a consolidated basis during the April to June period, up 21.8 percent from the same period last year. Sales surged 90.6 percent to 4.07 trillion won while net profit fell 4 percent to 157.1 billion won.
Operating profit and net income during the January to June period hit a record half-year high of 427.6 billion won and 357.8 billion won, respectively.
On Thursday, shares of Mirae Asset Daewoo closed 0.25 percent lower at 8,040 won.
“The strong earnings were driven by sound IB and trading businesses and increased interest and dividend income,” said an official from the company.
The combined net operating profit made from the IB, trading businesses and interest earnings surged 37.8 percent from the previous quarter to 330 billion won. In particular, the IB sector generated 111 billion won, up 75.5 percent from the previous quarter and exceeding 100 billion won for the first time.
Commission income also rose as it conducted many large-scale investment deals for Hong Kong’s skyscraper The Center building, a power complex in the U.S. and a coal terminal in Australia.
The share of the company’s global business in its entire net operating profit expanded to 27 percent in the first half of this year from 19 percent last year. The overseas operation raised 13.6 billion won in pre-tax net profit in the second quarter.
“Profits from subsidiaries in London, India and Los Angeles have begun to increase after they restructured their investment portfolio,” said another official from the company. “Subsidiaries in Brazil, Vietnam, and Indonesia are expected to contribute much more to our entire profits as they are strengthening businesses to advance into comprehensive financial firms.”
By Han Ye-kyung and Choi Mira
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]