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Business activities of securities companies in May 2023 

 Tuesday, May 30,2023

AsemconnectVietnam - In Q1/2023, SSI earned over VND590 billion pre-tax profit and HSC Securities reported VND154 billion pre-tax profit; FPT Securities (FTS) pays 5% cash dividend and 10% stock bonus; Bao Viet Securities (BVSC) target VND155.7 billion profit after tax in 2023.

SSI Securities Joint Stock Company
In the first quarter of 2023, SSI Securities Joint Stock Company (code SSI) achieved a revenue of VND1,457 billion, profit before tax of more than VND590 billion, double that of the previous quarter, also the highest profit in the securities industry now.
In the revenue structure, the profit from financial assets recorded through profit and loss is more than VND679 billion, higher than VND616 billion in the first quarter of last year.
Interest from investments held to maturity is nearly VND112 billion.
The securities brokerage and lending segments were VND257.1 billion and VND338.3 billion, respectively.
In the first quarter, SSI increased its brokerage market share to 11.53%, an increase of 1.57% compared to the previous quarter, the number of new accounts opened was 1.5 times higher than that of the fourth quarter of 2022. Currently, SSI is also actively launching many incentive programs, increasing transaction frequency, such as a margin loan package of VND5,000 billion with a preferential interest rate of 9%, a preferential interest rate program of 0% in the first 7 days of purchase and outstanding balance...
Revenue from capital and financial business is nearly VND160 billion, equivalent to about 10.9% of total revenue - this is SSI's strength when taking advantage of large scale, combined with investment into profitable assets such as deposit contracts, valuable papers.
In 2023, SSI is also the company with the highest business plan in the market with revenue of VND6,917 billion and pre-tax profit of VND2,540 billion. Thus, at the end of the first quarter, the Company fulfilled more than 23.2% of the whole year plan.
At the end of the first quarter, total assets of SSI reached VND52,105 billion, equity of VND22,428 billion. SSI's margin loan balance was recorded at VND10,950 billion, slightly up from VND10,872 billion at the end of 2022.
HSC Securities
Ho Chi Minh City Securities Corporation (HSC, stock code HCM - HOSE) announced its business results for the first quarter of 2023 with pre-tax profit of more than VND154 billion.
According to the statistics of the first quarter of 2023, the average trading value on the stock market was only VND11,400 billion/session, down 63% compared to the same period in 2022. This affects the activities of securities companies in general and HSC in particular.
In that context, HSC recorded a revenue of nearly VND489 billion, pre-tax profit of more than VND154 billion, down 43% and 56% respectively compared to the same period in the first quarter of 2022. Threee business segments: brokerage, margin lending and proprietary trading contribute more than 98% of the Company's total net revenue.
Securities brokerage revenue accounted for 27% of HSC's total revenue, reaching VND132 billion, down 53% compared to the same period in 2022. Revenue from margin lending activities reached VND223 billion, down 40% compared to the same period in 2022 and contributed 45.6% to total revenue. Proprietary investment reached more than VND125 billion, down 33% compared to last year, contributing 25.6% to total revenue.
Earnings per share (EPS) in the first quarter of 2023 reached VND271/share.
As of March 31, 2023, HSC's total assets reached VND14,139 billion, down 8% compared to the beginning of the period. In which, equity reached VND8,016 billion.
FPT Securities (FTS)
On May 12, FPT Securities Joint Stock Company (FTS - HOSE) will close the list of shareholders paying dividends in 2022 and issue shares to increase capital from equity.
Accordingly, the Company will pay a cash dividend at the rate of 5%, equivalent to a shareholder owning 1 share will receive VND500. Thus, with more than 195 million shares outstanding, FPT Securities will have to spend about VND97.5 billion to pay dividends to existing shareholders. Dividend payment time is expected from June 1, 2023.
At the same time, the Company plans to issue more than 19.5 million bonus shares to existing shareholders at the rate of 10%, respectively, shareholders owning 100 shares will receive 10 new shares. The number of decimal odd shares (if any) will be canceled and not issued.
The source of issuance is from undistributed after-tax profit as of December 31, 2022 in the audited financial statements of 2022, up to a maximum of more than VND195 billion.
Recently, a major shareholder from Japan continues to increase its ownership in FTS. Specifically, from March 16 to April 14, SBI Financial Services Co., Ltd. bought 100,000 FTS shares out of a total of 1 million registered shares. Thereby, this organization increased its ownership in FTS to 47,665,806 shares, ratio 24.44%, being the largest shareholder of FPT Securities.
Thus, with the above dividend and share bonus, major shareholder SBI Financial Services Co., Ltd. will receive about 23.84 billion dong in cash and nearly 4.77 million FTS shares.
At the end of last March, FPT Securities successfully held the Annual General Meeting of Shareholders in 2023 and approved this year's business plan with the target of revenue from business activities and financial activities of VND770 billion, down 26 ,54% compared to the results in 2022; pre-tax profit of VND420 billion, down 34.18% compared to the previous year.
Bao Viet Securities (BVSC)
On April 21, the 2023 Annual General Meeting of Shareholders of Bao Viet Securities Joint Stock Company - BVSC (BVS) approved the business plan and dividend payment plan.
Assessing the market situation in 2023 in the direction of continued difficulties, liquidity is expected to decrease by 30% compared to 2022, BVSC sets a business result target in the direction of "going backward". Specifically, the target of total revenue is VND768.5 billion, equivalent to 83% of the implementation level in 2022. Profit after tax is VND155.7 billion, equivalent to 106% of the implementation level in 2022.
The business plan for 2023 is prepared on the basis of the forecast of the stock market conditions in 2023 as follows: The average VN-Index fluctuates around 1,125 – 1,175 points, the average trading value is around the level VND14,000 billion/session, down 30% compared to 2022.
BVSC's financial report for the first quarter of 2023 shows that, in the quarter, the Company's total realized profit after tax reached VND27.3 billion, down 43.6% compared to the same period in 2022. According to BVSC, the reason for the decline in profit was due to unfavorable market movements, the trading value of the whole market in the first quarter of 2023 was only VND11,337 billion/session, down 36.3% over the same period last year. As a result, the Company's realized revenue dropped sharply by VND124 billion, equivalent to a decrease of 51.3%, resulting in a decrease in profit compared to the same period last year.
In addition, the meeting also reported business results in 2022, with total revenue of VND923.8 billion, of which realized revenue reached VND898.4 billion, completing 99.8% of the plan. Realized profit after tax reached VND213.7 billion, completing 101.8% of the plan, down 8% compared to 2021.
This number is somewhat more positive than the general result of securities companies, when the profit after tax of this group decreased by 27% in 2022 compared to the previous year due to unfavorable market movements.
At the General Meeting, shareholders unanimously approved the payment of dividends in cash from the after-tax profit of 2022, which is 10%, with a total value of more than VND72.2 billion.
BVSC plans to pay dividends in 2023 in cash at the rate of 8%.
A new point in this year's General Meeting was the approval of the Board of Directors' report on the use of the reserve fund for supplementing charter capital and the reserve fund for financial and operational risks. As of December 31, 2022, according to the audited financial statements for 2022, the balance of each fund is about more than VND59.3 billion.
It is expected to use the reserve fund to supplement charter capital to supplement the Company's charter capital, assigning the Board of Directors to consider and implement the capital increase based on the actual situation. The financial and professional risk reserve fund is used to compensate for loss and damage to assets occurring during the Company's business.
N.Nga
Source: VITIC/Tinnhanhchungkhoan
 

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