Securities brokers report high profits

26-Jan-2021 Intellasia | The Leader | 6:52 AM Print This Post

Securities companies raced to report double or triple profit in one year, the stock market boomed strongly in liquidity. According to the newly released separate financial report, SSI Securities Company (SSI) had Q4/2020 revenue of 1.207 trillion dong, an increase of 40 percent and pre-tax profit of 489 billion dong, an increase of 124 percent compared to the same period in 2019. For the whole year of 2020, SSI recorded 43 percent growth in revenue and 54 percent of profit before tax, equivalent to 4.528 trillion dong of revenue and 1.565 trillion dong of profit before tax. SSI was currently the securities company with the largest brokerage market share on the Hochiminh Stock Exchange (HOSE).

Exciting stock market transactions, especially in the last quarters of the year, helped SSI’s securities service revenue grow by 43 percent over the same period in 2019 to 474.35 billion dong. In particular, SSI’s investment activities continued to be successful in the quarter when revenue had increased by 130 percent over the same period in 2019, reaching 551 billion dong, profit growth of 278%. Besides, profit from capital trading & finance business increased by 46%. By the end of 2020, SSI had total assets of 35.429 trillion dong, which was an increase of 33 percent compared to the beginning of the period, of which the equity was 9.591 trillion dong.

Before SSI, a series of other securities companies on the market had also announced a successful business year. Hochiminh City Securities Corporation (HSC) recorded net revenue of 1.591 trillion dong in 2020, an increase of 26 percent compared to the whole year of 2019. The company’s cumulative profit after tax for the whole year 2020 reached 530 billion dong, increasing by 23%.

Although not officially closing the business book in 2020, Viet Capital Securities Company (VCSC) said that by 2020, the pre-tax profit was estimated at 950 billion dong, 73 percent higher than the set plan.

Saigon Hanoi Securities Company (SHS) recorded revenue of 2020 reaching 1.805 trillion dong, up 69 percent over the same period, in which there was a significant contribution from proprietary investments in stocks and bonds. Profit before tax of this company for the whole year reached 939 billion dong, nearly three times the profit target of the whole year 2020 and was the highest level in the history of SHS since its establishment.

Securities companies’ profit champion continued to belong to Techcombank Securities Company (TCBS) with a profit of nearly 2.7 trillion dong in 2020, an increase of 48 percent compared to last year. The company’s profit before tax was 83 percent and its return on equity (ROE) reached 40%.

Foreign securities companies with the advantage of abundant margin resources also gained positive business results. Mirae Asset Securities Company Vietnam (MASVN) had announced Q4/2020 financial statements with profit after tax of 146.32 billion dong, a sharp increase of 61 percent over the same period last year. Accumulated in 2020, MASVN reached approximately 500 billion dong of profit after tax, up 33 percent over the previous year.

By the end of 2020, outstanding loans, and receivables (mainly margin loans), of MASVN reached 11.132 trillion dong, an increase of nearly 1.5 trillion dong compared to the previous quarter. This was also the record number of Vietnam stock market.

Small and medium sized brokers also had a big year. In particular, Viet Dragon Securities Company (VDSC) announced Q4/2020 pre-tax profit reached 130 billion dong, which of the whole year 2020 reached 193 billion dong, far exceeding the plan. According to VDSC, with the strong growth of Vietnam’s stock market in the last three months of the year, the company’s business activities recorded positive and impressive results. The company’s total revenue in Q4/2020 reached 206 billion dong, an increase of 156 percent over the same period last year. Accumulated for the whole year 2020, VDSC’s total revenue reached 466.32 billion dong, exceeding 49 percent of the year plan.

Similarly, Agribank Securities Company (Agriseco) also ended 2020 with nearly 100 billion dong of profit after tax, up 42 percent over the same period last year.

Many securities companies raced to report high profits in a year, the stock market exploded. The Covid-19 epidemic had had an impact on production and business, causing social gap orders, low interest rate environment and the limitation of other investment channels, making cash to flow strongly into stocks.

According to the Vietnam Securities Depository, by the end of 2020, there were more than 2.77 million securities trading accounts of domestic and foreign investors. In which, there were 2.74 million domestic accounts, equivalent to 2.8 percent of Vietnam’s population. The individual investor had 2.73 million accounts.

In 2020 alone, 393,659 domestic investors’ securities trading accounts had been opened. Along with the rushing appearance of ‘F0′, who were investors entering the market for the first time, cash flow into stocks also increased sharply. From the average liquidity level of 3 trillion dong to 4 trillion dong per session before the disease, the liquidity in the market increased rapidly and was always above 10 trillion dong, especially in some sessions it was over 20 trillion dong. The large cash inflow even led to the system congestion on the HOSE.

 

Category: Stocks, Vietnam

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