Mirae Asset Securities (006800) Q3 2025 earnings summary

Executive summary

• Consolidated pre-tax income reached KRW 447.2 billion and net income was KRW 343.8 billion for Q3 2025, with annualized ROE at 10.8%, maintaining over 10% for two consecutive quarters.

• Brokerage and WM businesses achieved record-high quarterly revenues, with brokerage fee revenue at KRW 263.7 billion and WM fee revenue at KRW 91.8 billion, driven by increased trading volumes and strong financial product sales.

• Overseas subsidiaries posted stable operating profits, with Q3 pre-tax income at KRW 74.8 billion and YTD pre-tax income at KRW 299 billion, though Q3 saw a decline due to investment asset valuation losses.

• Surplus in investment asset portfolio for three consecutive quarters, posting net profit of KRW 93 billion.

• Maintained a strong capital base and robust risk management framework.

Financial highlights

• Brokerage fee revenue rose 22% Q-o-Q to KRW 263.7 billion; domestic stock brokerage up 27% Q-o-Q, overseas up 16% Q-o-Q.

• WM revenue from financial product sales increased 21% Q-o-Q to KRW 91.8 billion; wrap-related revenue up 35% Q-o-Q.

• Trading profit fell 49% Q-o-Q to KRW 241.2 billion due to reduced gains and valuation losses on alternative investments.

• Overseas subsidiaries' Q3 pre-tax income was KRW 74.8 billion; YTD pre-tax income reached KRW 299 billion, a record for the period.

• Equity capital (controlling interest) increased to KRW 12.7 trillion (QoQ +3.9%).

Outlook and guidance

• Expectation of stable and sustainable earnings base in pensions and WM, with a virtuous growth cycle anticipated.

• Fixed income management to remain cautious in Q4, considering U.S. inflation and increased domestic bond issuance.

• Anticipated expansion in overseas subsidiary performance, especially in New York and Asian markets.

• Continued investment in AI, digital platforms, and overseas expansion.

• Positive outlook for trading volume and brokerage earnings with the extension of U.S. trading hours to 24 hours.