Securities companies record third consecutive quarter of profit growth

Data compiled from the financial reports of the third quarter of 2023 of 26 securities companies shows that the securities companies had the most successful business quarter in the past 6 quarters.

According to data compiled from 26 securities companies, operating revenue increased by 17.8% in the third quarter of 2023 compared to the previous quarter, reaching VND 15,544 billion. Profit after tax increased by 20.5% to VND 4,873 billion. Thereby, these securities companies had the third consecutive quarter of profit growth and the second quarter reaching over the VND 4,000 billion milestone.

The champion in terms of profit in the third quarter of 2023 was TCBS with the announced figure of VND 915 billion. The following securities companies were SSI (VND 710 billion), VND (VND 636 billion).

Brokerage and margin lending are still the foundation of the operations of securities companies with a contribution ratio of 50% of operating revenue. In the last 3 quarters, the contribution ratio of these 2 segments to 26 securities companies was recorded at over 40%.

VPS with a dominant brokerage market share continues to outpace the remaining securities companies with brokerage revenue reaching 953 billion VND, more than 400 billion VND higher than the 2nd place SSI. Other securities companies such as VND, HCM, MBS, MAS are behind with brokerage revenue of 301 billion, 224 billion, 213 billion, 193 billion respectively.

However, SSI is the securities company that earns the most profit from margin activities with interest from loans and receivables of 430 billion VND. TCBS (423 billion), VPS (406 billion), MAS (387 billion), VND (357 billion), HCM (+292 billion) are the names right after SSI.

And the 6 enterprises mentioned above are also the top Securities Companies in margin lending activities when outstanding loans and receivables both reached over 10,000 billion VND, in which MAS has the 5th consecutive quarter topping outstanding loans.

Besides brokerage and margin, brokerage strategy and self-trading ability are important factors to help securities companies increase profits in the third quarter of 2023.

The securities company with the largest after-tax profit – TCBS with a strategy of not using brokers has the lowest brokerage cost/brokerage revenue ratio in the group of 26 listed securities companies, reaching 42%. Along with that, profit from self-trading brings TCBS more than 700 billion VND.

Meanwhile, SSI has a brokerage cost to revenue ratio of 74% and also has an additional VND700 billion from proprietary trading activities.

VPS maintains a brokerage cost to revenue ratio of around 80% but has a loss of nearly VND40 billion from proprietary trading activities.

VPBankS Securities Company still accepts losses from brokerage activities when the brokerage cost to revenue ratio is 104%. However, VPBankS has a profit of more than VND270 billion from proprietary trading.

After VPBank increased its equity to more than VND16,000 billion, VPBankS currently holds an investment portfolio of nearly VND13,000 billion, including more than VND10,500 billion in unlisted bonds and VND1,500 billion in certificates of deposit.