Record high margin debt, reported profit of nearly 1,100 billion VND

The brokerage segment still accounts for the largest proportion of VPS's operating revenue structure in the fourth quarter of 2024 with VND 618 billion.

VPS Securities: Record high margin debt, reported profit of nearly 1,100 billion VND

The brokerage segment still accounts for the largest proportion of VPS's operating revenue structure in the fourth quarter of 2024 with VND 618 billion.

VPS Securities Joint Stock Company has just announced its financial report for the fourth quarter and the whole year of 2024.

Accordingly, the company recorded VND 1,544 billion in operating revenue in the fourth quarter of 2024, a decrease of 3% compared to the same period last year. Operating expenses decreased sharply by 42% to VND 604 billion. This period, profit from financial assets recorded through profit/loss (FVTPL) was VND 278 billion, down 10%, while loss on this item was only 31%, down sharply by 90% compared to the same period.

The brokerage segment still accounts for the largest proportion of operating revenue with VND618 billion. After deducting expenses, the gross profit of the brokerage segment in the fourth quarter of 2024 was VND93 billion. In addition, interest from loans and receivables brought in VND458 billion for VPS in the last quarter of 2024, an increase of 36%.

Notably, during the period, VPS recorded a sudden increase in other investment revenue of VND448 billion, while this figure in the same period was only nearly VND32.7 billion. Financial expenses decreased by 16% to VND177 billion, while management expenses increased by 37% to VND173 billion.

As a result, VPS reported a net profit of VND837.3 billion in the fourth quarter of 2024, an increase of 329% over the same period. Accumulated for the whole year of 2024, this securities company achieved VND6,466 billion in operating revenue, an increase of 1.45% compared to 2023. Pre-tax profit reached VND3,157 billion, an increase of 279%. After-tax profit increased by 278% to VND2,521 billion. Meanwhile, according to the plan approved at the 2024 annual general meeting of shareholders, the company's pre-tax profit in 2024 is VND1,500 billion.

As of December 31, 2024, VPS Securities' total assets reached VND 30,371 billion, an increase of nearly VND 8,000 billion (35%) compared to the end of 2023. Loans accounted for a large proportion of VND 12,493 billion, an increase of 7.4%, of which margin lending outstanding reached a record of VND 12,209 billion. The FVTPL item had a market price of VND 8,079 billion, an increase of 44% compared to the beginning of the year. Of which, market instruments accounted for VND 6,953 billion, an increase of more than 22% compared to the beginning of the year. Listed bonds were VND 1,093 billion, while listed stocks were only over VND 17 billion. Investments held to maturity - HTM (term deposits over 3 months) increased from VND 1,671 billion at the beginning of the year to VND 7,075 billion.

VPS's total liabilities are at over VND19,000 billion, up 41% compared to the beginning of the year, mainly short-term loans and financial leasing debts of VND18,329 billion.

Recently, VPS held an extraordinary general meeting of shareholders in 2025. Accordingly, the company's shareholders approved the 2025 business plan with consolidated pre-tax profit of VND 3,500 billion, 2.3 times higher than the 2024 plan.

Shareholders also approved the plan and policy of issuing bonds to the public with a maximum total issuance value of VND 5,000 billion in 2025. At the same time, these bonds will be registered at the Vietnam Securities Depository and Clearing Corporation and listed on the trading system at HNX.

In addition, VPS will issue and offer private convertible bonds in 2025 with a maximum value of VND 7,000 billion. These securities will be offered to professional institutional securities investors and strategic institutional investors. Of which, the number of strategic institutional investors is less than 100 organizations. The purpose of the issuance is to restructure the debt with a maximum value of VND 7,000 billion, with a term of 6 months, and at the same time, increase capital when converting bonds into common shares.

VPS is still the leading "face" in brokerage market share in the fourth quarter and the whole year of 2024 at the Ho Chi Minh City Stock Exchange (HoSE). In the fourth quarter of 2024, VPS achieved a market share of 16.45%. Thus, VPS has maintained its leading position in brokerage market share on the HoSE for 16 consecutive quarters since the first quarter of 2021. In the whole year of 2024, VPS will still "monopolize" the leading position with a market share of 18.26%, down 0.8% compared to 2023.

Source: https://baodautu.vn/chung-khoan-vps-du-no-margin-cao-ky-luc-bao-lai-gan-1100-ty-dong-d241305.html