Currently, 24 securities brokerages have posted losses in 2010 with the total losses of 574 billion dong.
As of April 4, 87 securities brokers announced their business results in 2010. Thus, nearly 20 securities companies left have not released the fiscal report yet.
Amongst companies announced the business results, 24 ones posted losses in 2010 with the total loss of 574 billion dong.
The biggest loss was seen at Kim Long Securities Joint Stock Co (KLS) with 173 billion dong, marking the sole securities broker with the loss of more than 100 billion dong, and followed by Bao Viet Securities Joint Stock Co (BVS) with the loss of 92.7 billion dong, KIS Vietnam Securities JSC (-57.6 billion dong), Hai Phong Securities JSC (-48.7 billion dong) and Vina Securities JSC (-35.4 billion dong).
Totally, there are 10 securities posting losses of more than 10 billion dong.
Notably, nine securities brokers have seen no profits for three consecutive years from 2008 to 2010.
Especially, Nam Viet Securities Co (Navis) and Tam Nhin (Vision) Securities Co (HRS) posted losses for the fourth straight year. Seven remaining brokers are KIS Vietnam, Thanh Cong, Nam An, Navibank, Mien Nam (South), Hanoi and Vina.
Many others although gaining profit for two years 2009-2010, the profit can not make up their heavy losses in 2008.
At present, there are about 35 securities companies posting accumulated losses, of which, the biggest loss belonged to BVS with -214 billion dong, and then KLS with -169 billion dong and HPC (-149 billion dong).
The increasing accumulated losses means that the equity is decreasing if not being raised capital.
The Vision Securities JSC has a chartered capital of 45 billion dong, with the loss of 36.2 billion dong, its equity will be only 8.8 billion dong and the ownership capital of the other securities brokers such as Rubse, NVS, HSSC is also very low.
Facing the negative equity issue caused by the prolonged losses from business operations, some securities companies have been “rescued” recently such as Gia Quyen Securities JSC (EPS) was supported by the capital contribution of up to 49 percent stake by Korean KIS Securities Co, increasing its chartered capital from 135 billion dong to 236.6 billion dong and changing its name to KIS Vietnam Securities Co.
E-Viet Securities Co (EVS) also hiked its chartered capital from 35 billion dong to 161 billion dong and changed its name to Navibank Securities JSC.
Mien Nam (Southern) Securities JSC also scaled up its chartered capital from 40 billion dong to 340 billion dong.
Also in 2010, there were many changes in the name and the owner such as Viettranimex Securities changed its name to Lien Viet Securities JSC, Pacific Securities JSC changed its name to Tri Viet Securities Co and Standard Securities JSC changed its name to Maritime Bank Securities JSC.
Thus, many banks that have no securities arms are seeking opportunities to cooperate with small securities companies.
Dai Tin (Great Trust) Bank-TrustBank also contributed capital into Dai Viet Securities Co and Southern Bank also poured capital into Mien Nam (Southern) Securities Co.