Mirae Asset Securities to cancel 65 million treasury shares, pledges 35% shareholder return ratio for three years

Mirae Asset Securities plans to cancel 65 million treasury shares — about 60% of its holdings — next year and return at least 35% of consolidated adjusted net profit for the period to shareholders annually over the next three years.

The brokerage posted a loss in the third quarter of this year due to valuation losses on investment assets, but its cumulative net profit surged 148% year-on-year and overseas subsidiaries continued to grow, prompting the firm to strengthen its medium- to long-term shareholder return policy.

Mirae Asset Securities announced its third-quarter 2026 earnings and a new shareholder return policy covering 2027 to 2029 on Thursday. The company recorded a consolidated pre-tax loss of 520.6 billion won ($389 million) and a net loss of 405.6 billion won for the quarter, as slowing market activity and investment asset valuation losses weighed on results quarter-on-quarter.

Cumulative consolidated pre-tax profit and net profit for the period reached 3.37 trillion won and 2.5 trillion won, respectively, up 156% and 148% from the same period last year. Cumulative pre-tax profit from overseas subsidiaries rose 138% year-on-year to 713 billion won, a record for any three-quarter cumulative period. The annualized return on equity based on net profit stood at 24%, up 13 percentage points from the same period last year.

Mirae Asset Securities also unveiled a new shareholder return policy covering 2027 through 2029, the result of a comprehensive review of how to deploy treasury shares accumulated since a past merger in a way that aligns with the spirit of the Commercial Act and enhances shareholder value.

The company plans to cancel 65 million common treasury shares — roughly 60% of the 108.33 million shares currently held — immediately after next year's annual general meeting of shareholders, taking into account all relevant regulations and procedures.

For the remaining treasury shares, the company said it would review options including additional cancellations or using them as a source of funding for shareholder returns. Consistent with its existing policy, the company will also return at least 35% of consolidated adjusted net profit for the period to shareholders through dividends and treasury share acquisitions.

Mirae Asset Securities has operated a rolling three-year shareholder return policy since 2018 to improve the predictability and sustainability of returns. Since 2021, it has returned more than 2.2 trillion won to shareholders through dividends and treasury share cancellations, achieving a shareholder return ratio of about 40% over the past two years.

"Drawing on the expertise and experience we have built through our overseas expansion, we will accelerate the path to profitability in advanced markets and translate that into tangible results," a company official said. "We will also actively channel profits generated by our overseas subsidiaries through local investment and business activities back to the domestic headquarters as dividends, using them as a key source of funding for shareholder returns."

Mirae Asset Securities is also pushing ahead with new product launches. The company said Wednesday it would open a subscription period for individually held government bonds, running through Tuesday for five business days. The total issuance size is 200 billion won, broken down by maturity: 2 billion won in three-year coupon bonds, 3 billion won in three-year compound-interest bonds, 20 billion won in five-year bonds, 140 billion won in 10-year bonds, and 35 billion won in 20-year bonds.