Of nine securities companies that announced third quarter performance, six had losses and the remaining saw profit falls. According to the explanation of the brokers, the bleak stock market is main reason causing the losses of securities companies in the third quarter.
In the fiscal report in Q3, Hai Phong Securities JSC (HPC) posted revenue of eight billion dong while business operation expenses were up to 47 billion dong plus corporate management costs of 4.6 billion dong, therefore HPC reported a loss of 42.9 billion dong in Q3 and the total losses were 143 billion dong in Jan-Sep.
Bao Viet Securities JSC (BVS) also announced a big loss in Q3 due to revenue from business activities and securities brokerage decreased strongly, especially securities self-trading activities. Meanwhile in the same period last year, the company’s securities self-trading activities earned 62.8 billion dong plunging to 18.3 billion dong in Q3. Additionally, the business operation expenses increased to 110.9 billion dong, therefore BVS’s loss in Q3 was 74.6 billion dong.
One of big losers in Q3 was VietinBank’s Securities Co (Vietinbanksc). The reason was still that the company’s securities self-trading activities shrunk from 59.8 billion dong to 8.6 billion dong year-on-year while costs increased to 59.45 billion dong, causing the loss of 26.96 billion dong in Q3.
Unlike the golden age of Vietnam’s stock market, revenue of securities brokers was mainly from securities self-trading activities. In Q3 this year, main revenue of these brokers was from other activities such as finance support for investors or listing consultancy services.
Particularly, in Q3, SME Securities Co’s loss of only 1.18 billion dong was thanks to revenue from other activities. Similarly, Phu Hung Securities Co (PHS)’s loss was also only 4.93 billion dong.
Conversely, HCM City Securities Joint Stock Co (HCM) still posted 31.7 billion dong of after tax profit, mainly from securities investment cooperation, interest from deposits, and share buying contracts while the company’s revenue from self-trading activities decreased from 80.8 billion dong to 15.5 billion dong year-on-year.
Saigon Securities Inc (SSI) also gained 146.2 billion dong of after tax profit in Q3. In particular, the company’s main revenue was from other activities with 33.14 percent, 29.5 percent from securities investments (self-trading) and 23.6 percent from securities brokerage activities.
According to Le Dat Chi, head of financial investment subject, HCM City Economics University, investors should remain cautious with the profit figures of securities companies, because to have good profit result, many companies sold out profitable self-trading categories, and after accounting profit, they will buy back the share codes that are losing prices to average the price and avoid heavy deduction for stock risk standby fund in the last months.