After a period of volatility, the stock market has gradually recovered since the end of 2022 and had short recoveries in early 2023. The less negative market developments have led to a recovery in stock portfolios, causing a series of securities companies to report self-trading profits in the first quarter of 2023, while the fourth quarter of 2022 recorded losses, some even had negative growth.
According to the list of pre-tax profits of some securities companies compiled by Nguoi Dua Tin , most of them had a profit decrease of 40 - 65%, including MB Securities (MBS) down 40%; KIS Vietnam Securities down 43%; VPS Securities down 51%; Mirae Asset Securities (MAS) down 55%; Ho Chi Minh City Securities (HSC) down 56%; and Techcom Securities (TCBS) down 64%.
The majority of these enterprises' revenue is from proprietary trading activities. The proprietary trading segment includes financial assets recognized through profit/loss (FVTPL), investments held to maturity (HTM) and financial assets available for sale (AFS).
Securities trading used to be a money-making business for securities companies in 2021. However, in the context of a sharp market decline, many companies reported a sharp decline in revenue and profits at the end of 2022 due to losses in stock investments.
By 2023, when the market showed signs of recovery and remained flat, this business segment brought revenue to securities companies, while the brokerage segment was still declining. In the first quarter, 75% of securities companies had profits from self-trading, better than the figure of 58% in the fourth quarter of 2022.
Among them, the top leaders in self-trading profits have many familiar names such as SSI Securities, VNDirect Securities, Techcom Securities (TCBS), HSC Securities... However, a new face has appeared, VPBank Securities, a securities company acquired and restructured by VPBank in 2022.
Specifically, SSI Securities (SSI) recorded a slight increase in FVPTL profit to VND614 billion, but interest from loans and receivables decreased by half to less than VND340 billion. Brokerage revenue also decreased sharply by 57% to VND257 billion.
In the portfolio, more than 70% are investment stocks, especially the company is recording profits thanks to the investment in SGN. This is also the stock with the largest proportion in SSI's portfolio, reaching 407 billion VND. The rest are certificates of deposit and unlisted bonds.
Also having self-trading profit is VNDirect Securities (VND) with FVTPL profit reaching VND 302.5 billion, while in the same period, self-trading profit reached VND 409 billion. In addition to self-trading, having to bear high interest expenses also puts pressure on VNDirect's revenue and profit. In the first quarter of 2023, VNDirect increased the proportion of FVTPL financial assets by more than VND 1,000 billion, to VND 20,039 billion, accounting for 54% of total assets.
In the portfolio, VNDirect is holding mostly corporate bonds and deposit certificates. The company did not explain in detail the number of listed stocks and fund certificates it holds. As for the stock portfolio, the company's fund certificates increased slightly by 15% at this time to VND917 billion.
In the top 10 securities companies with the largest proprietary trading profits in the first quarter of 2023, most of them hold a large proportion of bonds. For example, VPBank Securities holds more than VND10,000 billion in unlisted bonds, accounting for 3% of the total portfolio value.
Ho Chi Minh City Securities (HSC, HCM) holds more than VND1,200 billion worth of listed bonds, accounting for nearly 84% of the total portfolio value. Regarding stocks, the prominent codes that HSC holds are all VN30 stocks (FPT, VPB, MWG, TCB, ACB, PNJ, ...).
In addition, Techcom Securities (TCBS) also has a listed bond portfolio of nearly VND740 billion from enterprises such as Thanh Thanh Cong Tourism, Masan Meatlife, Vingroup, Vinhomes. In the unlisted bond category, VND6,560 billion, accounting for more than 75% of the company's portfolio value, also belongs to large enterprises such as Saigon Urban Development and Investment Corporation and Vinfast Production and Trading Corporation.
BIDV Securities (BSC) currently owns nearly 1,000 billion VND of unlisted bonds. However, most of these come from credit institution bonds. In the stock portfolio, DGC, STB, VIB are the codes that account for a large proportion in the company's portfolio.
Thien Viet Securities (TVSI, TVS) alone has more than VND600 billion in corporate bonds in its portfolio. In addition, the company also holds prominent stocks with large proportions that have brought in profits from self-trading in recent times such as HPG, ACB, VPB, MBB.
Going against the trend, Vietcombank Securities (VCBS) has a large proportion of its proprietary trading portfolio in deposit contracts and deposit certificates, accounting for more than 70% of the total portfolio value, reaching VND2,795 billion. The proprietary trading portfolio of ACB Securities (ACBS) also recorded all investments in stocks, however, the company is losing nearly 20% compared to the original price.
Ranked 10th, Dragon Viet Securities (VDS) has a proprietary trading portfolio with the majority of investment stocks, including prominent codes such as DBC, ACB, TCB, CTG, QNS. In addition, the company still holds more than 507 billion VND in corporate bonds .
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