Mirae Asset Securities Posts KRW 405.6 Billion Q3 Loss... "To Retire 65 Million Treasury Shares"

SpaceX investment losses factored into estimates
Third-quarter recurring earnings remained solid at KRW 380 billion excluding investment losses
Plans to retire 65 million treasury shares

Mirae Asset Securities swung to a loss in the third quarter. The company said on November 12 that it posted a consolidated pretax loss of KRW 520.6 billion and a net loss of KRW 405.6 billion for the third quarter of this year. Earnings declined from the previous quarter as market trading activity slowed and valuation losses on investment assets, including SpaceX, were reflected. However, excluding losses on third-quarter PI (proprietary investment) investments, recurring earnings remained solid at approximately KRW 380 billion.

For the first three quarters of this year, cumulative consolidated pretax profit and net profit totaled KRW 3.3657 trillion and KRW 2.5016 trillion, respectively, up 156% and 148% from the same period last year. Overseas subsidiaries posted cumulative pretax profit of KRW 713 billion, up 138% year over year and a record high for the first three quarters. The annualized return on equity (ROE) based on net profit was 24%, an increase of 13 percentage points from the same period last year.

Mirae Asset Securities also announced a new shareholder-return policy to be applied from 2027 through 2029. It plans to retire 65 million of its 108,338,501 common treasury shares, or approximately 60% of its current holdings, immediately after next year's annual general meeting, taking into comprehensive consideration the relevant systems and procedures. The shares are valued at KRW 1.4 trillion based on the closing price on November 11.

The company will also consider further share retirements or using the remaining treasury shares as a source of shareholder returns. As under its existing policy, it will return at least 35% of consolidated adjusted net profit to shareholders through dividends and treasury share purchases.

Mirae Asset Securities has established and implemented shareholder-return policies in three-year cycles since 2018 to improve the predictability and sustainability of shareholder returns. Since 2021, it has returned more than KRW 2.2 trillion to shareholders through dividends and treasury share retirements, and recorded a shareholder-return ratio of approximately 40% over the past two years.

A Mirae Asset Securities representative said, "Building on the expertise and experience we have gained through our overseas expansion, we will accelerate our efforts to bring forward the timing of monetization in developed markets and translate it into tangible results. We will also return to our domestic headquarters, in the form of dividends, profits generated by our overseas subsidiaries through local investments and business operations, and actively use them as a source of shareholder returns."

This content was produced with the assistance of AI translation services.