Illustrative picture (Picture: VNDirect Securities Company) Hanoi (VNS/VNA) – The less-optimistic actions of the
inventory market have negatively impacted the enterprise outcomes of securities corporations
within the first quarter of the 12 months.
Monetary assertion studies confirmed that the securities group, together with main
corporations, witnessed a pointy decline in revenue.
Particularly, VNDirect Securities Company reported a plunge of 81.6%
year-on-year in revenue after tax, from almost 762.2 billion VND within the first
quarter of 2022 to 140.5 billion VND in Q1 of 2023.
The securities agency defined the sturdy fall was as a result of adverse affect of
the overall market, which precipitated a 27% lower in its income to 1.29 trillion
VND.
Of which, income from margin lending and brokerage actions of VNDirect
dipped by 46.2% and 68.4% on-year, respectively. In the meantime, income from
proprietary buying and selling was the one enterprise exercise posting a rise of 17.8%
to 782 billion VND.
Then again, the corporate’s bills rose by 4.2% over the identical interval
final 12 months to 629 billion VND, whereas lack of proprietary buying and selling elevated by 220.5
billion VND, or 87.8%, and monetary bills additionally tripled.
Equally, Saigon – Hanoi Securities JSC (SHS) and Viet Capital Securities JSC
reported sturdy losses in enterprise outcomes. Within the first quarter, SHS’s revenue
after tax plummeted by 87.6% over final 12 months to 40.9 billion VND, whereas Viet
Capital recorded a revenue after tax of solely 73 billion VND, down 82.4%
year-on-year.
SSI Securities Company additionally couldn’t escape the downtrend. It reported a
lower of almost 30% in revenue after tax to 480.8 billion VND from 684
billion VND in the identical interval of 2022.
Its income dropped 26.4% on-year to 1.43 trillion VND, of which
the corporate’s proprietary buying and selling income rose barely to 679.1 billion VND,
however curiosity from loans and receivables halved to 338.3 billion VND. Income
from brokerage actions additionally fell by 57.1% to 257.1 billion VND.
The Q1 after-tax revenue of Techcombank Securities JSC (TCBS) and Ho Chi Minh
Metropolis Securities Company (HSC) declined by 64.5% and 56.2% over final 12 months,
respectively, to 333.5 billion VND and 123.8 billion VND. In the meantime, Mirae
Asset Securities reported a fall of 54.9% year-on-year in revenue after tax to 128.3
billion VND as a result of a 53% drop in revenue earlier than tax and a 25.1% lower in
income.
A lot of the securities corporations mentioned that the explanation for the decline in revenue
was as a result of volatility and uncertainties of the inventory market within the first
three months of 2023.
Given the excessive sensitivity to the market, securities corporations’ proprietary buying and selling,
brokerage, and margin lending actions suffered strongly because the market was
gloomy and buyers turned extraordinarily cautious.
Significantly, rates of interest are a significant component affecting the market temper. Excessive
rates of interest precipitated buyers to be anxious in regards to the prospect of company
income, whereas the extreme decline in world buying energy affected import
and export actions.
Increased rates of interest are additionally a big barrier to buyers’ demand for
margin loans.
The statistics haven’t proven many indicators of enchancment. Excellent steadiness
barely elevated within the first quarter of this 12 months after plummeting within the
fourth quarter of final 12 months to the bottom degree in seven quarters.
Throughout the interval, the full brokerage income of securities corporations
reached 2 trillion VND, a decline of 34% over the earlier quarter and fewer
than a 3rd of the worth within the fourth quarter of 2021. The determine was the
lowest within the final 9 quarters.
The bills for this exercise additionally decreased by 21% in comparison with the earlier
quarter to roughly 1.85 trillion VND. Because of this, the gross revenue from
brokerage actions throughout the interval fell sharply 76% to about 200 billion
VND, the bottom degree in 11 quarters.
VPS Securities JSC continued to guide in brokerage income, reaching 411.3
billion VND, down 57.8% year-on-year. This marked the sixth consecutive
quarterly fall in brokerage income.
Different securities corporations additionally posted a fall of at the very least 20% in brokerage income
within the first quarter, with SSI’s brokerage income reaching 257.1 billion VND;
VNDirect’s 145.7 billion VND, HSC’s 132 billion VND and Mirae Asset’s 105
billion VND.
Decrease liquidity and gloomy market actions have been attributed to the
poor efficiency of the brokerage actions of securities corporations./.