Domestic and international stock market booms and inflows into funds have propelled Mirae Asset Management's net profit for the first half of the year to nearly 1 trillion won. A significant increase in equity method gains from overseas subsidiaries has driven the company's record performance.
According to the Financial Supervisory Service's electronic disclosure system on August 19, Mirae Asset Management reported a standalone net profit of 906.2 billion won for the first half of the year. This marks an increase of approximately 2.8 times compared to 326.7 billion won during the same period last year. The consolidated net profit was recorded at 954.6 billion won.
Pre-tax profit exceeded 1 trillion won, reaching 1 trillion 74 billion won. This is the first time in the asset management industry that a company has surpassed 1 trillion won in pre-tax profit for a half-year period.
The improvement in performance was significantly influenced by the increase in equity method gains. Mirae Asset Management's operating profit for the first half was 238.6 billion won, while equity method gains amounted to 768.5 billion won, more than three times the operating profit. Corporate tax expenses were 101.2 billion won.
Mirae Asset Management attributed the growth in operating and net profits to increased fee income from rising fund assets under management, along with strong growth from overseas subsidiaries in the U.S. and Hong Kong.
Compared to other asset management firms, the gap was substantial. According to the Korea Financial Investment Association, Korea Investment Value Asset Management, the second-highest in net profit for the first half, recorded 274.6 billion won. DS Asset Management reported a net profit of 177.3 billion won.
Tiger Asset Management and Timefolio Asset Management, which close their books in March, reported net profits of 183.8 billion won and 156.1 billion won, respectively, for the second quarter. Among large firms, Samsung Asset Management recorded 129.3 billion won, KB Asset Management 78.2 billion won, Shinhan Asset Management 47.4 billion won, and Korea Investment Trust Management 43.6 billion won in net profits.
In terms of operating profit, the differences among asset management firms were relatively smaller. DS Asset Management and Korea Investment Value Asset Management reported operating profits of 235.2 billion won and 209.0 billion won, respectively, while Tiger Asset Management generated 228.3 billion won in operating profit in the second quarter alone. Samsung Asset Management's operating profit for the first half was 160.8 billion won.
The influx of funds into mutual funds and exchange-traded funds (ETFs) due to rising domestic and international stock markets has been analyzed as a factor boosting overall performance in the asset management industry. The total net asset value of the domestic ETF market briefly surpassed 500 trillion won during the first half.
* This article has been translated by AI.
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