Agriseco reports third-quarter profit decline despite strong increase in brokerage revenue

Recently, Agribank Securities Joint Stock Company (Agriseco – HoSE: AGR) announced its financial report for the third quarter of 2023. Accordingly, in this quarter, Agriseco brought in nearly 100 billion VND in revenue, an increase of 18% over the same period.

Of which, the largest source of revenue came from interest from loans and receivables, reaching VND37 billion, down 5% compared to the previous quarter. At the same time, interest from financial assets recorded through profit/loss (FVTPL) also decreased by 21%, to VND9 billion.

In contrast, Agriseco increased its profit from held-to-maturity (HTM) investments and brokerage revenue by 57% and 37% year-on-year, respectively, to VND20 billion and VND21 billion. In the last quarter, the company also recorded an additional VND5 billion in profit from available-for-sale (AFS) financial assets, while it did not record this amount in the same period.

In terms of expenses, total operating expenses were nearly VND26 billion, up 13%, FVTPL asset losses and securities brokerage expenses also tended to be more expensive, increasing by 23% and 39% respectively over the same period, reaching VND5 billion and VND9 billion. Deducting all expenses, Agriseco recorded a profit after tax of VND27 billion in the third quarter, down 11% over the same period in 2022.

Accumulated in the first 9 months of 2023, the securities company's operating revenue reached VND 272 billion, an insignificant change compared to the same period, but Agriseco reported a slight increase in after-tax profit of 10%, to VND 112 billion.

Compared to the results achieved in the third quarter of 2023, Agriseco has simultaneously completed 61% of the revenue and profit targets set for 2023.

As of September 30, Agriseco's asset size was over VND3,200 billion, up 14% compared to the beginning of the year. Of which, the largest proportion was still loans and investments held to maturity (HTM), both up 12% and 3% compared to the beginning of the year, reaching VND1,332 billion and VND1,120 billion. Accordingly, the outstanding margin loan balance at the end of the third quarter was VND1,120 billion, up 12% compared to the beginning of the year.

Notably, the value of available-for-sale (AFS) assets increased fourfold over the same period, recording VND313 billion. Meanwhile, undistributed profits decreased by 12% to VND240 billion .

Source