BIDV Securities (BSC) wants to increase capital to nearly 2,500 billion

BIDV Securities Joint Stock Company (BSC - code BSI) will submit a plan to increase capital through paying dividends in shares at the 2025 Annual General Meeting of Shareholders taking place on April 18, 2025.  

According to the proposal, BSC plans to issue 22.3 million shares to pay dividends at a rate of 10%. The charter capital after issuance is expected to increase from VND2,230 billion to VND2,453 billion. The purpose of issuance is to increase charter capital to serve the Company's business development needs.

Previously, in 2024, BSC achieved VND 516 billion in profit after tax, a slight increase of 1.3% compared to 2023.  

BSC said that this business result was set in the context of a sharp decline in market liquidity in the second half of the year, reaching an average of VND 21,017 billion/session, 9% lower than the assumption when building the 2024 business plan at VND 23,000 billion/session. The bond market is still recovering slowly, while related legal regulations tend to be tighter, creating more challenges for businesses, investors and financial consulting activities.

Last year, BSC's stock brokerage market share reached 2.34%, down from 2.59% in 2023 due to fierce competitive pressures, but the company is still in the top 7 brokerages on the HNX floor and top 10 brokerage market share on the UPCoM floor.

Regarding lending activities, as of December 31, 2024, total outstanding loans reached VND 5,306 billion,   increased by 19% compared to the end of 2023. BSC's loan interest revenue reached VND 505.5 billion, an increase of 13.3% compared to 2023. BSC said that general market lending interest rates remain low and competition for margin lending policies in the market is increasingly fierce. To maintain outstanding debt levels, BSC's margin lending product policies must ensure increased competition, which means that profit margins will decrease but can still promote increased scale and profits from lending activities.

Assessing opportunities and challenges in 2025, BSC said there are 3 favorable factors affecting the securities industry, including: The driving force from the "institutional, human resources, and structural" revolution is creating a solid foundation for economic development, enhancing the attractiveness of the stock market;   The macroeconomic recovery and low interest rate environment create favorable conditions for capital inflows into the market and Prospects for upgrading. Vietnam is gradually addressing the remaining issues to meet the criteria for upgrading from a frontier market to an emerging market by FTSE.

Besides, the market still has difficulties, in addition to the factors of uncertain international developments, competition for market share will become increasingly fierce, delivery fees will continue to decrease gradually following the Zero-fee trend, at the same time, the pressure to increase exchange rates in the context of maintaining low interest rates continues to be a barrier for foreign capital to re-enter the market.  

In this context, BSC sets a target of pre-tax profit in 2025 of VND 560 billion, an increase of 9% compared to 2024, while ensuring safe and effective operations; lending, investment and available capital ratios are within the permitted limits according to regulations.  

This year, BSC said it will gradually restore its leading position in brokerage activities, diversify products, expand product portfolios, distribute open-end fund certificates, distribute/broker individual bonds. At the same time, it will update product policies, adjust fee policies and lending interest rates according to market trends, ensuring competitiveness...

Source: https://baodautu.vn/chung-khoan-bidv-bsc-muon-tang-von-len-gan-2500-ty-d260082.html