Profits skyrocket for Vietnamese securities traders

HÀ NỘI — A prosperous first six months of this year for securities traders has led to many reaching their profit targets for the whole year already.

Everest Securities Joint Stock Company (EVS) has just announced second-quarter revenue of more than VNĐ 二 五 二 billion (US$ 一 一 million), up three-fold over the same period last year. Pre-tax profit was VNĐ 一 二 八. 六 billion, up  六. 七 times.

EVS leaders attributed the strong increase in business results in the second quarter to the outstanding growth of the stock market in both prices and liquidity.

In the first  六 months of  二0 二 一, EVS’s revenue reached nearly VNĐ 三 七 八 billion, up more than double compared to the first half of last year. Profit before tax increased nearly  二 四 times over the same period last year, reaching more than VNĐ 二 二 一 billion.

In  二0 二 一, EVS had targeted revenue of VNĐ 二 三 八. 四 billion and pre-tax profit of VNĐ 八 一. 二 billion. Thus, with the above business results, EVS has achieved  一 五 八 per cent and  二 七 二 per cent, respectively, of the revenue and profit targets for the whole year.

Việt Dragon Securities Joint Stock Company also announced that it exceeded  七0 per cent of its profit target for the whole year of  二0 二 一 after only six months.

The company’s total revenue of the first  六 months of  二0 二 一 reached more than VNĐ 五 三0 billion, meeting their yearly target, and up by  三 一 一 per cent compared to the first  六 months of  二0 二0.

Revenue from its major businesses, brokerage and investment banking, almost all completed and exceeded their targets for the year.

Its profit before tax was estimated at more than VNĐ 三0 六 billion. Profit after tax was more than VNĐ 二 四 五 billion, equaling  一 七0 per cent of the  二0 二 一 plan,  一 八. 六 times higher than the same period in  二0 二0. This is also the highest profit the company has achieved to date.

Việt Dragon attributed the impressive results to the company’s prioritising the interests of its customers and extensive efforts to perfect its services.

The positive business results were also attributed to Rồng Việt’s ability to quickly make good use of new opportunities on the Vietnamese stock market in the first half of  二0 二 一.

In the second quarter of  二0 二 一 alone, Techcombank Securities JSC (TCBS) reported revenue of VNĐ 一. 三 trillion, up  五 二 per cent year-on-year and pre-tax profit reached VNĐ 一 trillion, up  三 二 per cent over last year.

In the first six months of this year, its revenue and pre-tax profit were VNĐ 二. 三 二 trillion and VNĐ 一. 八 四 trillion, respectively, up  五 六 per cent and  四 五 per cent over the same period last year.

After six months, TCBS has been in the list of the top securities companies with the highest margin balance, reaching VNĐ 八. 六 trillion, up  二 三 八 per cent over the same period last year.

At the end of last month, Agribank Securities Company also announced six-month pre-tax profit of about VNĐ 一 六0 billion, up by three times over the same period in  二0 二0.

In a recent report on the securities industry outlook for the second half of  二0 二 一, SSI estimated that the six-month profit before tax of the four largest listed securities companies would grow by  一 五 五. 三 per cent from last year. These four companies were SSI Securities Joint Stock Company, Hồ Chí Minh City Securities Corporation, Việt Capital Securities Joint Stock Company and VNDirect Securities Joint Stock Company.

On the stock market, the benchmark VN-Index surpassed  一, 四00 in June. Since the beginning of this year, the VN-Index has recorded an increase of  二 七. 六 per cent, making Việt Nam's stock market one of the strongest gainers in the world.

In the second half of  二0 二 一 and  二0 二 二, the main revenue growth driver of securities companies will be loosening monetary policy, new cash flow from individual investors, capital flow from foreign investors, investment banking services and capital raising of securities companies.

Although their revenue is expected to continue to grow until  二0 二 二, SSI experts believe that the current market dynamics may decelerate in the second half of  二0 二 一 after a strong increase in the first half of the year.

SSI estimates that profit growth for these four companies will return to normal at  七. 七 per cent in the second half of  二0 二 一. Estimated profit growth is  六 六. 八 per cent for the whole year of  二0 二 一 and will stay at a  二 一. 四 per cent increase in  二0 二 二.

The main risk of the securities industry is falling profit margins for core businesses, including lending and securities brokerage, due to intense competitive pressure. Rising inflation, rising interest rates, and falling stock prices can lead to lower market liquidity and lower profits, SSI said. — VNS