Mirae Asset Securities Issuer Flash

Report date: 2026-05-14
Event date: 2026-05-12
Event title: Q1 2026 Results

1. Flash Conclusion

Mirae Asset Securities’ Q1 2026 results reinforce the view outlined in the most recent issuer summary: that the firm’s profitability improved markedly from 2025 into early 2026, but should be assessed as a market-facing financial institution rather than a bank-style credit entity. According to the official IR Q1 Financial Statements, consolidated operating profit reached approximately KRW 1.375 trillion, consolidated net profit was around KRW 1.002 trillion, and net profit attributable to parent shareholders was KRW 0.996 trillion—an exceptionally strong quarterly performance. The depth of earnings is clearly supportive of capital accumulation and rating stability. However, total assets, repo sales, borrowings, and client deposits have also expanded, shifting the focus of credit analysis from “high earnings per se” to “the extent to which these earnings can sustain capital, liquidity, and risk-asset growth.”

This flash report does not materially change the credit level, direction, or likelihood of sudden rating moves from the most recent issuer summary. Mirae Asset Securities remains a top-tier Korean securities firm, positioned as a market-facing financial issuer with an international investment-grade equivalent of BBB/Baa2, and Q1 profits support continued holding. That said, annualizing Q1 earnings as recurring is risky. The official XLSX shows operating revenue includes significant items sensitive to market conditions: gains and losses on fair value financial assets, derivatives, FX, and repo-related expenses. Credit-wise, the results are positive, but they should be interpreted as reinforcing the assumptions underpinning S&P’s June 2025 Stable outlook rather than as new grounds for an upgrade.

2. What Was Announced

The official IR disclosed Q1 2026 on a pre-audit basis. Key consolidated figures are:

On the balance sheet, as of Q1-end, consolidated total assets stood at KRW 169.9 trillion, consolidated capital at KRW 14.3 trillion, and cash & deposits at KRW 9.4 trillion. Compared with end-2025, total assets increased from KRW 150.3 trillion and capital from KRW 13.5 trillion. While profit retention supports capital growth, total asset expansion outpaces capital increase, requiring continued monitoring of risk-adjusted capital, regulatory capital, and leverage trends.

Funding and liquidity: Q1-end borrowings were KRW 83.0 trillion, repo sales KRW 49.6 trillion, CP borrowings KRW 3.6 trillion, client deposits KRW 21.8 trillion, and derivative-linked securities outstanding KRW 7.2 trillion. These reflect large-scale trading and client base but, under stress, raise considerations around rollover risk, collateral value, haircuts, client outflows, and short-term market access. Cash & deposits of KRW 9.4 trillion are a key liquidity buffer, though maturity ladders, currency diversification, unused commitments, and entity-specific liquidity are not fully visible from the Q1 IR.

Business metrics are also strong. Official factsheets show Q1-end wealth management (WM) assets at KRW 224.0 trillion, retirement pensions at KRW 42.4 trillion, and brokerage assets at KRW 357.6 trillion. Increases since end-2025 indicate client assets, pension inflows, and trading flows support earnings. High average daily trading volume across the market likely contributed to Q1 brokerage fee growth. However, asset growth driven by favorable market conditions is sensitive to market prices and risk appetite, making the durability of balance-driven earnings under weaker conditions a key follow-up.

3. Credit Read-Through

1. Profitability supports capital: Q1 results reinforce the positioning in the issuer summary, where FY2025 net profit attributable to parent shareholders of KRW 1.57 trillion and Q1 2026 high earnings were aligned with S&P’s Stable outlook. Q1 net profit attributable to parent of KRW 0.996 trillion enhances loss-absorbing capacity and tolerance for future real estate or alternative investment losses. However, simultaneous dividend payouts, share buybacks, overseas business, proprietary trading, and balance sheet expansion may limit the portion of earnings available as a credit buffer.

2. Profit quality: Fee revenue of KRW 0.727 trillion, brokerage KRW 0.534 trillion, WM assets KRW 224.0 trillion, and pensions KRW 42.4 trillion indicate a robust client-driven base. Yet, the P&L includes significant market-sensitive items: valuation and disposal gains, listed/OTC derivatives, FX, financial liability P&L, and repo interest expenses. While Q1 profits are credit-positive, the persistence of normalized earnings, loss potential under stress, and minimum earnings under declining brokerage volumes remain to be tested.

3. Balance sheet expansion: Total assets of KRW 169.9 trillion, liabilities KRW 155.5 trillion, borrowings KRW 83.0 trillion, and repo sales KRW 49.6 trillion indicate market presence and access. For bondholders, this implies reliance on market funding, collateral revaluation, short-term rollover, FX liquidity, and derivative/securities lending needs. Despite capital growth vs. end-2025, the combined expansion of assets and funding necessitates assessing leverage and liquidity alongside earnings.

4. Overseas and investment risk: Q1 profitability may reflect overseas subsidiaries, WM, brokerage, and investment-related income. The official Q1 statements do not fully disaggregate overseas commercial real estate, alternative investments, illiquid holdings, specific gains/losses, Sharekhan integration costs, or local capital requirements. Previous issuer summary issues—overseas CRE, real estate PF, structured products, proprietary trading, and foreign subsidiaries—remain. Q1 should be seen as a quarter where profits absorbed risk, not as risk elimination.

5. Liquidity and funding: Cash & deposits of KRW 9.4 trillion and client deposits of KRW 21.8 trillion are significant, but securities liquidity depends on collateral usability under multi-day stress, short-term market access, FX funding, and legal entity location. Q1 statements do not suggest deterioration in S&P’s liquidity profile, but are insufficient to confirm improvement.

In summary, Q1 results are credit-positive but do not warrant an upward revision of the previous issuer summary. Strong earnings support BBB/Baa2-level issuer credit, but Mirae Asset Securities remains a market-facing institution, not a bank-style stable-deposit credit. Investors should focus on post-Q1 revenue composition, capital ratios, repo/CP/FX funding, and real estate/alternative investment valuations.

4. What To Watch Next

1. Earnings repeatability: Monitor Q2 onward revenue sustainability. Separate brokerage fees, WM/pension revenue, overseas subsidiaries, proprietary/valuation P&L, and derivative P&L to determine whether Q1 high earnings were client-base driven or market/valuation influenced. Critical is whether fees and balance-driven income persist in weak markets.

2. Capital and leverage: Assess whether KRW 14.3 trillion capital provides adequate risk buffer against rapid total asset growth, factoring in NCR, risk-adjusted capital, proprietary trading, real estate/alternative investment, and overseas capital allocations. RAC trajectory, particularly risk of falling below 7% or sustaining above 10%, remains a key rating trigger.

3. Liquidity and funding: Analyze composition, maturities, currencies, collateral, haircuts, and FX liquidity of repo sales KRW 49.6 trillion, borrowings KRW 83.0 trillion, CP KRW 3.6 trillion, and client deposits KRW 21.8 trillion. Q1 data do not fully reveal short-term funding resilience or legal entity FX liquidity critical for overseas investors.

4. Overseas and investment risk: Track post-Sharekhan India operations, developed-market subsidiary liquidations, securities lending, ETF business, overseas commercial real estate, alternative investments, and illiquid asset valuations and impairments. High-profit periods may accelerate risk-asset growth or shareholder returns, potentially affecting credit buffers.

5. Sources

• Mirae Asset Securities, 2026 1Q Financial Statements, official IR XLSX, Q1 2026, posted 2026-05-12, pro forma / unaudited quarterly statements.
• Mirae Asset Securities, 2026 1Q Earnings Release, official IR PDF, Q1 2026, posted 2026-05-12.
• Mirae Asset Securities, 2025 4Q Financial Statements, official IR XLSX, Q4 2025 / FY2025.
• Mirae Asset Securities, 2025 4Q Earnings Release, official IR PDF, Q4 2025 / FY2025.
• Mirae Asset Securities, 2025 Integrated Report, official IR PDF.
• S&P Global Ratings, Mirae Asset Securities Outlook Revised To Stable On Sector's Improving Profits; 'BBB/A-2' Ratings Affirmed, 2025-06-24.
• Internal extraction file based on official XLSX: issuer_summary/issuers/mirae_asset_securities/data/mirae_asset_securities_key_metrics.json.
• Existing report used for comparison: issuer_summary/issuers/mirae_asset_securities/current/mirae_asset_securities_issuer_summary_20260513.md.

6. Unverified / Pending

• Event date 2026-05-12 is based on the saved official IR and posted date in the source registry. Confirm on the official IR page upon next update.
• Detailed management accounting breakdown of Q1 high earnings by proprietary trading, overseas subsidiaries, brokerage, WM/pension, valuation gains, FX/derivative P&L.
• Valuation gains of individual private or overseas investments (e.g., SpaceX) and Hong Kong-listed holdings.
• NCR, S&P RAC ratio, funding by currency and maturity, unused commitment lines, FX liquidity, and entity-specific liquidity.
• Detailed exposure and impairments for real estate PF, overseas commercial property, alternative investments, illiquid assets, and structured products.
• Individual foreign bond offering circulars, guarantees, covenants, change-of-control clauses, cross-defaults, subordination, and current spreads/yields.