Securities firm profits fall amid market decline

VIETNAM, July 12 –

HÀ NỘI — Securities firms are expecting a less positive earnings season in the second quarter, following a bleak outlook for the stock market.

The domestic stock market closed the second quarter with the VN index down 20% from its peak at the end of the first quarter. The market value of the entire market has declined by almost 30%.

Phan Văn Tuấn, chairman of the board of directors of Agribank Securities Company (Agriseco), said that the sharp drop in the stock market had an effect on the profits of companies in the sector.

Agriseco’s second quarter pre-tax profit reached VNĐ60 billion (US$2.6 billion). Loans and receivables contributed the most to the earnings structure, while the trading value of bonds was not as expected.

In the first six months of the year, the firm’s brokerage services revenue fell as market liquidity declined, proprietary trading revenue was only 48% of the same period. year, but title services revenues still grew by 50%. Profit in the six months reached over VNĐ120 billion, down nearly 25% from the same period in 2021.

For major securities companies such as HCM Securities Corporation (HSC) and VNDirect (VND), although the second quarter profit still increased compared to the same period last year, but compared to the first quarter of 2022 , it was still a step back .

Specifically, VNDirect’s 6-month pre-tax profit reached VN1.620 billion, up 43% from the same period in 2021, completing approximately 45% of the annual business plan. Profit in the second quarter alone was VNĐ660 billion, down more than 30% from the previous quarter.

Saigon-Hanoi Securities Joint Stock Company (SHS) said the company’s profit in the second quarter may still maintain its growth momentum from the same period in 2021, but it will be difficult to achieve the result as in first quarter of 2022.

The situation is similar for securities companies with smaller capital. Hoàng Anh, managing director of Guotai Junan Vietnam Securities Joint Stock Company, said the company’s second quarter 2022 after-tax profit was estimated at VNĐ8 billion, down slightly from VNĐ9 billion in the previous quarter. .

The stock market turned negative in the second quarter of 2022, with a sharp decline in scores and liquidity, leading to lower gross margin in the brokerage segment, while the proprietary trading segment of many securities companies declined. been affected. Securities companies’ profit in the second quarter would come mainly from margin lending services.

According to Fiinpro statistics, the balance of margin loans as of March 31, 2022 was almost flat compared to the end of 2021. Fiinpro forecasts that securities companies should increase their after-tax profit by 14% this year, decelerating sharply by compared to the 165% increase recorded in 2021. VNS

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