Rong Viet Securities recorded over 306 billion VND in profit after tax, up 21%

Brokerage revenue decreased by nearly 60% compared to the third quarter of last year, significantly affecting the business results of the last period. However, for the whole year, Rong Viet Securities' profit still increased by 21% compared to the same period and exceeded the annual plan by 6.4%.

Dragon Capital Securities' profits fell due to the gloomy trading situation in the market.

Dragon Viet Securities Joint Stock Company (VDSC, code VDS - HoSE) announced its financial report for the third quarter of 2024 with operating revenue at VND 219 billion, down 11% year-on-year. Profit after tax was recorded at nearly VND 75 billion, down 18.4% year-on-year.

Explaining the reason for the decline in profits, VDSC leaders said that although most of the company's business segments were maintained and developed compared to the same period in 2023, the sharp decline in liquidity value and unfavorable market conditions significantly affected the company's revenue from securities brokerage and investment banking activities.

Specifically, brokerage revenue in the period reached VND41 billion, down 58% compared to the same period last year. Meanwhile, profit from financial assets recorded through profit/loss (FVTPL) reached VND64 billion, up 20%. Interest from loans and receivables accounted for the largest proportion in the structure of operating revenue, reaching nearly VND101 billion and up 12.7% compared to the same period.

Operating expenses were over VND107 billion, up slightly by 1.9% year-on-year, of which brokerage expenses decreased by 24% to VND33.5 billion. Losses from financial assets recorded through profit/loss were over VND2 billion, up sharply from only VND840 million in the same period.

Accumulated in 9 months, net revenue was VND799 billion, up 40% over the same period. Of which, profit from financial assets recorded through profit/loss contributed the most with VND342 billion, up 178%. Profit from loans and receivables increased 21% to VND286 billion. Meanwhile, brokerage revenue reached VND148 billion, down 23%.

The company recorded more than VND306 billion in profit after tax, up 21% over the same period and exceeding the yearly plan by 6.4%.

According to information from Rong Viet Securities, Rong Viet Fund Management Joint Stock Company (VDAM), a subsidiary 58% owned by VDSC, recorded total revenue in the third quarter of 2024 of VND 3.2 billion and negative profit after tax of VND 1 billion. In the first 9 months of 2024, this fund management company earned VND 16.8 billion in revenue, up 130% over the same period, and VND 2.2 billion in profit after tax, down 39% over the same period. The above results respectively completed 81% and 34% of the 2024 plan.

VDAM's fund management and asset management consulting services still recorded outstanding performance compared to the VN-Index. Specifically, Rong Viet Active Investment Fund (RVIF) recorded a net asset value (NAV) growth of 20.1%, the two wealthDragon portfolios RongViet Growth and RongViet Wealth achieved performance of 28.7% and 32.9% respectively after 9 months of 2024.

As of September 30, 2024, VDSC recorded total assets and equity at VND6,056 billion and VND2,803 billion, up 14.5% and 17.2% respectively compared to the beginning of the year. The growth in VDSC's asset size partly comes from capital mobilization activities through the issuance of individual corporate bonds. In the first 9 months of 2024, VDSC successfully issued 3 bond tranches with a total actual issuance value of nearly VND2,200 billion. Currently, Rong Viet is continuing to offer the 4th bond tranche with a total value of VND900 billion with a fixed interest rate of 8.2%/year, further consolidating the company's capital source.

The value of financial assets recorded through profit/loss is VND 1,179 billion, up 11% compared to the beginning of the year. Of which, the majority are listed stocks (VND 1,040 billion). The company's portfolio of stocks includes VNM (VND 157 billion), CTG (VND 143 billion), ACB (VND 123 billion), MWG (VND 138 billion)...

Financial assets available for sale were VND436 billion, double the VND211 billion at the beginning of the year. Of which, the company holds the most shares of KBC (VND247 billion), KDH (VND142 billion) and QNS (VND48 billion).

Loans reached VND3,359 billion, up 21%, of which margin loans were VND3,105 billion.

The financial safety ratio reached 550.6%, far exceeding the minimum of 180%. The debt/equity ratio was 1.16 times (lower than the prescribed ceiling of 5 times) and the margin loan/equity ratio was stable at 1.09 times (the maximum prescribed limit is 2 times). The return on equity (ROE) and the return on total assets (ROA) (cumulative of the last 4 quarters) reached 14.8% and 6.8%, respectively. Earnings per share (EPS) for the first 9 months of 2024 reached VND 1,411.

Source: https://baodautu.vn/chung-khoan-rong-viet-ghi-nhan-hon-306-ty-dong-loi-nhuan-sau-thue-tang-21-d227679.html