Greetings. Thank you for taking part in today's conference call for Mirae Asset Securities. We will first hear Mirae Asset Securities presentation and then have a Q&A session. For those who have questions, please press star and the asterisk, and then ask your question. We will now begin Mirae Asset Securities' 2024 Full Year Business Results Presentation. For earnings call, we have here with us Mirae Asset Securities' CEO, Kim Mi-seob, as well as CFO and Head of Business Innovation Division, Lee Kang-hyuk. We will provide English simultaneous interpretation for overseas investors. The agenda for today's conference will consist, first of a walkthrough, Mirae Asset Securities 2025 key strategies, 2024 business results and performance for different businesses, then Q&A session. 2024 business presentation materials will be uploaded on our regular report menu in our IR website, ci.securities.miraeasset.com.
A recorded version of today's conference call will also be uploaded on our IR website as well. The content of this conference call includes forecast information based on the current writing of this data, please note that the actual business performance may differ due to changes in the business environment and strategy revisions. First, we will invite the CEO. Please refer to page two of the business results.
Greetings, everyone. I am Mirae Asset Securities CEO, Kim Mi-seob. Thank you very much for participating in our 2024 earnings call. Mirae Asset Securities 2024 consolidated pre-tax income posted KRW 1,184.5 billion, net income posted KRW 893.7 billion, grew 217% and 168% YoY, respectively. In addition, 2024 end consolidated equity capital posted KRW 12.2 trillion, around KRW 1 trillion increase compared to KRW 11.3 trillion in 2023.
A more detailed business results review will be provided by CFO Lee Kang-hyuk. I will walk you through Mirae Asset Securities' 2025 key focus strategies. Mirae Asset Securities' 2025 key focus strategies are to, first, enhance company's profit generation capacity focused on global WM and pension. Second, improve global business profitability. Third, strengthen AI competitiveness and enhance shareholder value. First, I will touch upon enhancing company's revenue generation capacity, centering on global WM and pension. Last year, we announced corporate value enhancement plans to achieve more than 10% ROE, to generate more than KRW 500 billion global pre-tax income by 2030. Our company will focus on global WM and pension business. We will strengthen IB, PI, and trading revenues to pull up our company's overall revenue level. For WM, we will strengthen client-customized comprehensive asset management and continuously execute asset growth and revenue expansion.
Utilizing AI, we will rapidly and accurately provide high-quality global investment data through m.Stock, strengthen personalized marketing based on data analysis. For ultra high-net-worth individuals, or UHNW, focusing on our newly established PWM business, we will cooperate with IB and trading to expand private product supply and strengthen differentiated comprehensive consulting and services, including family office. For our pension business, we will accelerate the money move to our company, utilizing the transfer of retirement pension as an opportunity, strengthen investment portfolio that has long-term stability and growth potential, including robo-advisor, MP subscription, and personal pension wrap to stably manage our profitability. In IB, PI, and trading, we will well analyze the performance and risk factors that can be acquired through investment and trading, reduce profit volatility, increase our company's revenue contribution.
In addition, we will reshuffle our somewhat downside global IB business. From our investment perspective, pay more attention to not only U.S. and Indian companies, but also to Chinese companies and markets, which has the highest level of manufacturing competitiveness in the world. Second, I will touch upon global business profitability improvement. We are strategically implementing our strategies to expand revenue contribution generated from our global business. In particular, late last year, we completed acquisition of Sharekhan, which has 133 branches all around India, as well as 3.1 million customers. Secured the next driver for the next 20 years of growth focused on global WM. Based on the many years of accumulated our global know-how, we will actively expand our brokerage and asset management business in the Indian market with 1.4 billion population.
We will have global ETF-linked sales and trading businesses in advanced countries including U.S., Hong Kong, U.K., and Singapore. Focus on online-based brokerage business in emerging countries, including Indonesia, Vietnam, Brazil. Pursues stable revenue growth to enhance global business contribution to the company. Thirdly, we will strengthen our own AI capability and provide global asset allocation strategy. We are focusing on AI. Around the world, we are seeing accelerated development of AI. According to the differences in AI development, we will have a difference in the company's growth. We will strengthen our AI capabilities and provide investment content service in a timely manner and pursue continuous innovation in trading and asset management. In addition, we will establish AI infrastructure and expand diverse solution development to enhance work efficiency and productivity.
We plan to connect to our group's AI subsidiary, Wealth Spot, to provide diverse AI trading products with much lower costs and lower volatility to our customers. We will work hard to bring about ultra gaps in the market using AI as core competitiveness in all businesses and work. Last but not least, I would like to touch upon shareholder value enhancement. In the three-year shareholder return policy that we established in February, we made detailed plans to have more than 35% or above shareholder returns and cancel at minimum 15 million common stocks and at minimum 1 million secondary preferred stocks. In addition, in the corporate value enhancement plan that was announced in August, we set additional goal of canceling a cumulative 100 million shares by 2030. The return size in 2024 will increase in absolute size on the back of profit improvement.
We are currently reviewing cash dividends and the amount of share cancellation. We plan to announce the size of our cancellation of shares and shareholder return ratio in February through our cash dividend disclosure. Regarding our return policy, which was consistently practiced during the past several years, we believe that the trust from the market will increase as time passes. In order to enhance value for our shareholders, regarding the policies that we are committed to, we will implement them according to our plans consistently and faithfully. With this, I will end my explanation regarding 2025 key business strategies. Next, CFO Lee Kang-hyuk will explain in detail regarding the performance of each business.
Thank you. Good morning. I am the CFO, Lee Kang-hyuk, Head of the Business Innovation Division. Please refer to page three for the business highlights for 2024, then I will go into more details about the performance. Last year, due to the increased profit contributions by the overseas stock commission revenue, the overall brokerage revenue increased by 28% YoY As of the end of November 2024, Mirae Asset Sharekhan acquisition was completed, and Mirae Asset Sharekhan was launched. Going forward, it will serve as the growth engine of our global business. In last year, second half, we recognized non-recurring gain of KRW 340 billion owing to capital reduction gain from Hong Kong subsidiary and gains from sale of an office building. The valuation losses from assets held for investment purposes fell 36% YoY and contributed to improvement of the company's profit.
For your information, page four is a summary of the business performance. Please read through them at your leisure. Next, on more details on the performance by business segment. First, let's start off with performance of the brokerage business. Please refer to page five. Mirae Asset Securities continued a solid growth trend in this segment as we focus on increasing global assets and improving client profitability. In particular, in 2024, the contributions by overseas stocks increased, and overseas stock assets passed the KRW 40 trillion mark for the first time in the industry. The brokerage commission revenue is up 28% YoY, posting KRW 704.9 billion. In particular, the individual clients overseas stock trading volume increased significantly in overseas stock assets as of the end of Q4, is up 72% YoY to post KRW 40.8 trillion, and overseas stock commission revenue is up 114% YoY to post KRW 283.1 billion.
The domestic stock trading value since Q1 of last year has shown a steady decline, and the domestic stock commission revenue posted KRW 421.8 billion, similar to the year before. In Q4, for the first time, the commission revenue from overseas stocks surpassed that of the domestic stock and drove the brokerage revenue of our company. Next on Wealth Management, WM performance, and please refer to page six of the presentation material. In 2024, our company's WM commission revenue is up 15% YoY to post KRW 281.8 billion on the back of pension, trust, and wrap account commission revenue growth. The WM assets is up 5% YoY to post KRW 190.4 trillion. The pension business of the company is continuing a steady growth in last year as well.
In Q4, institutional clients had undertaken ERP and the pension transfer system had been implemented in October, which drove a clear trend toward the money move. The cumulative pension assets passed the KRW 40 trillion mark for the first time in the industry to post KRW 42.7 billion. In particular, personal pension DC IRP assets exceeded KRW 10 trillion each respectively, achieving a pension triple crown. Also, our company is working to leverage the AI technology in all of our business areas. We're working to promptly and accurately convey overseas investment information news so as to support global asset management. Then, AI-driven pension, robo-advisors, AUM, as a result, has exceeded KRW 2 trillion already. Next, on trading performance. Please refer to page seven of the presentation material. The trading income in 2024 includes the income gained in bonds, derivatives, FNT, and PI.
In 2024, in the midst of a volatile interest rate market environment, we have still been able to post stable bond investment returns. In addition, the flow trading and derivative business performance has also strengthened over the previous year. The overall trading investment returns is up 7% YoY to post KRW 371.8 billion. The overall trading investment returns is up 7% YoY to post KRW 371.8 billion. As of the end of last year, the bond assets of the company is up 22% YoY to post KRW 339.5 billion, although the pace might be a bit slower than initially anticipated as we foresee interest rate cuts at both home and abroad. Our expectation is of increasing gains from the bond investment. Next is on the performance of IB. Please refer to page eight.
In 2024, the IB commission revenue is down 7% YoY to post KRW 185.8 billion. Last year, unsold assets and real estate PF issues had to be responded to, and under the judgment that a cautious approach is called for in consideration of the market situation. We focused on risk management rather than overly aggressive deal involvement. In 2024, Hyundai Electric, and so what included, a total of 15 IPO lead was undertaken, and in case of Hyundai Electric, we also took part in the pre-IPO and achieved positive results. In terms of IPO, we were number one in the league table in 2023, and in 2024, we ranked second, thus continuing to maintain a dominant position in the market.
In real estate PF, Seongsu-dong K project office facility construction project, the wholesaling district office in Asan, Tangjeong Apartment Housing Development businesses were some of the projects for which we provided PF advisory and arrangement services. Also, the Busan Osiria Resort Development Project Hillstate, Daejeon Hillstate, Changwon, for such existing equity investment, we realized valuation gains and dividends. The gains on valuation and dividends are classified as trading income in our earnings report. Next is performance of overseas subsidiaries. Please refer to page nine. In 2024, in overseas subsidiaries, since Q1, recurring profit was recovered, and in Q2 to Q4, on average, more than KRW 50 billion in pre-tax income was generated. The annual pre-tax income on a YoY basis is up 243% to post KRW 166.1 billion.
Excluding the Q1 fair value valuation loss, which had an impact on the full-year performance, the recurring pre-tax earnings is KRW 230.5 billion. Also, last year, the U.S. subsidiary posted earnings of KRW 94.5 billion, the largest since its inception. The U.S. subsidiary is the only domestic entity to hold a local clearing license and is providing stable U.S. stock brokerage services. Last August, the system connection with major local exchanges, such as the New York Stock Exchange and NASDAQ, was successfully completed and, through IT and localization strategies, capabilities is being strengthened. Starting from January, in overseas subsidiary segment, we can look forward to increased profit due to the launch of Mirae Sharekhan. Based on a full-service securities license, we will do our utmost to increase market dominance in the Indian market.
With this, we conclude the earnings presentation for the full year 2024 of Mirae Asset Securities.
Now we will take questions. Please press star and one on your phone to ask questions. Please press star and two to cancel your question. We will not be able to take all questions because of the time constraints. From Samsung Securities, we have Jongm in Kim. You are on the line, sir.
Thank you very much. I am Jongm in Kim from Samsung Securities. I have a question related to your Indian subsidiary among your overseas subsidiaries. You had about KRW 300 billion of increase of capital for India subsidiary, and if you have your current pre-tax income level of an Indian subsidiary and going forward, when you break down the revenue from India subsidiary for brokerage or interest and IB.
Can you tell us about what will be your guidance for the future, can you tell us about where you will use the increased capital that was invested? Thank you very much.
I am CFO Lee Kang-hyuk, and I will answer your question. Thank you very much for your question. For 2024, the Indian subsidiary's revenue, to give you more details, pre-tax income was about KRW 16.6 billion, and for Sharekhan that we acquired late last year, it's KRW 64 billion. It's about KRW 80.6 billion. However, for Sharekhan, the acquisition was completed in late November. In the 2024 financial statement, only the December numbers are reflected. Also, for Sharekhan, after the acquisition, for our revenues and our P&L breakdown, we can't really give it to you in detail. I think you can take into account our Indian subsidiary numbers and the P&L, and interest income will be about the local brokerage fee income, and interest income will be about six to four for the breakdown.
For our Indian subsidiary, we will have about $200 million capital increase, and it will be completed in March. I mentioned $200 million increase, and our equity capital will go up to fourth or fifth place. We will have this capital increase for future, and we will have brokerage margin loan business expansion and strengthen our growth and profitability potential. Thank you very much.
Next question is from Baek Doosan from Korea Investment. Please ask your question.
Good morning. I have a question about pensions. Including ourselves, many large securities companies, since the pension transfer system, they have strengthened their pension business, in terms of the absolute size and also from last year's growth rate, you're doing quite well. However, because competition is intensifying not only asset growth, how you're going to generate profit has become all the more important. In conclusion, my question is, the increase of customer pension assets, how can it contribute to our profitability, both directly and indirectly?
Thank you very much for that question. In the case of our company, within the group, as an affiliate, we have Mirae Asset Global Investments. They have nurtured the ETF business for a long time with a long-term vision. The steady growth of the AUM has served as the basis for this ETF business becoming a key revenue stream.
I think our pension business is similar to ETF business of Mirae Asset Management. Starting with 2025, we have been investing in pension business, back when no other peers were investing as seriously as ours. We take great pride in that. The revenue from pension business is the sales fees, as well as other commissions. In 2022, in the pension business, about KRW 100 billion of revenue was generated related to pension business. Every year, KRW 30 billion of growth in revenue is being achieved. Along with the steady growth in the pension asset, in terms of profitability as well, snowballing effect is being generated. In terms of pension revenue, it is becoming a key source of revenue stream for the company, especially starting from last year. The retirement pension transfer system was implemented in October.
Along with this regulatory change, I think this trend will be more accelerated going forward. Thank you very much.
The next question will be given by Ahn Young-joon from Kiwoom Securities.
Hello, I am Ahn Young-joon from Kiwoom Securities. Looking at your full year earnings results, it seems very positive. Congratulations. For 2025, I'm curious about what your outlook is for 2025 earnings. Can you give us your guidance for 2025?
Yes, I will elaborate on that. In August of last year, we had our corporate value enhancement plan that we announced. We mentioned our target is to achieve annual ROE of 10%. When we drew up 2025 business plans last year, we actually thought that we would have a favorable market environment with interest rate cuts. As we had mentioned, we have a target to achieve more than 10% ROE each year. We have a sizable fixed income asset or balance so that it is actually favorable for us to improve our performance in a market decline regime. However, we had some political issues domestically and with the second Trump administration. We are seeing a lot of challenges in the market and economy. However, despite that, we are going to do our best to reach 10% ROE each year. Thank you very much.
Next question is from Daishin Securities, Park Hye-jin. The floor is yours.
Good morning. I'm Park Hye-jin from Daishin Securities. I have two questions. In the case of overseas commercial real estate, I have a question. As of the end of December, what is the total exposure for overseas commercial real estate? Up until now, I'm sure a lot of impairment losses have been reflected in Q4. How much of an impairment loss have you recognized? My second question is, starting from 2025, are there any assets that are potentially at issue? I think there's a lot of DNA potential depreciation and motivation issues that can come up.
Let me answer that question. As of the end of 2024, the overseas commercial real estate investment exposure is around KRW 1.4 trillion, and the losses that were recognized is around KRW 340 billion in 2024.
In 2025, overseas commercial real estate, that can be an issue. There's about four such assets. These assets will go through a restructuring or through other measures. The investment managers that are managing these assets, together with ourselves, we are looking into different options. At this point, we're not able to disclose any further details. Please understand this. However, already sufficiently, the losses have been reflected, and also, given the interest rate regimes, some of the asset is expected to turn around. This year, we really think that any additional losses will be quite limited. That is our expectation. Thank you.
The next question will be given by Seol Yong-jin from SK Securities. Please go ahead.
Thank you for the opportunity. In my case, I have a question related to 10% of ROE that you had mentioned. You would need to have returns coming in from your previously invested assets. Can you actually give us some color on what investment assets will bring you revenues going forward, that you had already invested in?
Thank you very much for your question. As you had mentioned, in order for us to achieve higher than 10% ROE, we would need to have proactive profitability enhancement of our investment assets. Currently, as of late last year, the position of our major innovative companies that we had invested in is about KRW 1.9 trillion. During our investment, we actually signed NDAs with several companies. I cannot really give you a detailed breakdown of each company and the numbers. However, in the media, I think there were some estimations of our position, so maybe you can actually refer to it for some information. Regarding our investment assets, well, for corporations, they are mostly focused on innovative companies in and out of Korea. We are looking forward to great results. We are actually forecasting valuation gains as well. Thank you very much.
Next question is from NH Securities. Yoon Yoodong, please ask your question.
Good morning. Thank you very much for giving me the opportunity to ask my question. I think we cannot help but talk about overseas stocks starting from Q4. Toss Securities and Meritz Securities have been posting very significant results. Responding to this, do you have any strategies or in 2025 with regards to overseas stocks? What kind of strategies you have in mind going forward?
Thank you very much for your question. As you said, in the case of Toss Securities in the overseas stock segment, it is posting very strong results. Meritz Securities also moving aggressively into this area. Especially in the case of Toss Securities, so it's very high turnover rate. It is increasing the trading volume, value as well as revenue.
In the case of our company, rather than the P&L of the company, increasing the returns of the customers is what we're focusing on. Thus, we're differentiating our investment contents and services in that manner. We do believe that we can carve out a very strong position for ourselves by pursuing this approach. As has been reported in the media, in 2024, our overseas stock customers revenue was KRW 14 trillion. The return rate was 16%. As a result, despite the strong performance of online specializing securities in terms of our assets or revenue market share, there wasn't any big impact. Going forward as well, utilizing AI, we'll continue to focus on providing high quality service and research on blue-chip stocks so that we can secure more returns for our customers.
However, Toss or Meritz Securities, these online securities companies, they may have advantages that we do not have, so we will carefully review our business to supplement any assets that we're lacking. Thank you.
Because of time constraints, we will take the last question. The last question is from Yuanta Securities, Woo Do-h yung. Please go ahead.
Thank you very much. I am Woo Do-h yung from Yuanta Securities. I have some questions regarding IMA. Compared to your competitors, there are some media coverage saying that you are a little bit passive. I'm curious about your stance on IMA business.
I will answer your question. Thank you very much for your question. For IMA, it will guarantee principal to the customer, and it can also provide high profits at the same time. It is a very attractive financial instrument or product. However, for Mirae Asset DNA, our core is in trading, so we believe that IMA business will be a new opportunity for our company. Regarding the business strategy or the business possibility or potential of IMA, it hasn't been strictly set out yet. There could be many changes according to the detailed regulatory setting.
When the regulatory authorities come up with a complete setting for IMA, we will come up with responses according to that. Thank you.
We would like to thank everyone for taking part in the 2024 earnings call of Mirae Asset Securities. If you have any further questions, please pose your questions to the ESG IR team. You will find the website address in our homepage. Thank you very much.