The picture of second quarter profits of the securities industry is gradually being revealed. Most businesses recorded post-tax profit growth compared to the same period last year. Typical examples include Techcom Securities (up 192%, marking a record quarterly growth result), MB Securities (up 75%), Ho Chi Minh City Securities (up nearly 100%, also the highest level of nearly 3 years). year), Vietcap Securities (up 140%)... Observations show that this group's breakthrough profits mainly come from effective self-trading.
Statistics from FiinTrade as of July 21, securities are one of the industry groups that mainly contributed to the increase in total profit after tax in the second quarter of 2024 compared to the same period last year.
On the contrary, in the group of decreasing profits, BIDV Securities (BSC, code BSI) reported a decrease in profit before tax in the second quarter by 11% to 136 billion VND. The corresponding profit after tax reached 114 billion VND, down 7%. Compared to the profit level in the first quarter of 2024, BSI's profit results are "exhausted" with a decrease of about 17%. In reflection, BSI shares have lost nearly 20% of their value in the past quarter.
It is worth mentioning that BSC recorded less positive profits from its proprietary trading segment, contrary to the majority in the industry. Accordingly, in the second quarter, the company only profited 48 billion VND from self-trading activities, while the same period profit was 91 billion VND.
Rookie on HOSE - DNSE Securities Company recorded second quarter after-tax profit of 34 billion VND, down 33% over the same period last year. Explaining the reason, DNSE said that operating revenue in the second quarter increased by 12% over the same period, mainly from the brokerage segment. However, similar to BSC, profits from DNSE's FVTPL assets decreased by 81%. Operating costs increased by 26%, mainly from brokerage operations. In addition, losses from FVTPL assets recorded 24 billion VND, while the same period reversed more than 4 billion VND. Management costs also increased by 62% to 36 billion VND.
Another name is VIX Securities (code VIX) and announced that its profit after tax in the second quarter narrowed by 78% compared to the same period last year, down to 124 billion VND. Profit from FVTPL assets reached 222 billion VND, only half compared to the second quarter of last year. According to VIX, the stock market witnessed a deep correction in April and June, due to many domestic and foreign factors. This significantly affects the company's proprietary trading portfolio.
Elsewhere, securities companies reporting losses in the second quarter are mainly small-scale such as CV Securities, Wall Street Securities, Beta, JB Vietnam, Eurocapital...
According to assessments from experts from VNDIRECT Securities Company, the long-term growth potential of the securities industry has been reflected in stock valuations. Therefore, the sector's valuation is no longer attractive compared to other sectors in the context of long-term prospects related to the implementation of the KRX system, upgrade to emerging market status and the fourth interest rate cut. The Fed's opening scheduled for March 2024 has been delayed.
In the context of businesses continuously increasing capital, investment efficiency is forecast to be the main difference in business results of businesses in the industry.
