BSC CEO reveals advantages when connecting to KRX, predicts the market is nearing the upgrade milestone

BIDV Securities held the 2025 Annual General Meeting of Shareholders to approve all proposals.

Conservative profit plan, Q1/2025 only completed 18%

On April 18, 2025, BIDV Securities Joint Stock Company (BSC, stock code BSI - HOSE) held the 2025 Annual General Meeting of Shareholders. According to the plan approved by shareholders, BIDV Securities aims to achieve pre-tax profit of VND 560 billion, an increase of 9% compared to 2024.

“Based on the assessment of the macroeconomic and stock market prospects in Vietnam in 2025, BSC has identified key targets for 2025 to maintain the company's sustainable development,” the report sent to the company's shareholders stated. These targets include improving financial capacity, comprehensive growth, expanding the scale of profitable assets, digital transformation, perfecting human resources and salary policies, and effective risk management. In particular, the company mentioned expanding foreign borrowing sources to meet the needs of business expansion, expanding outstanding loans, increasing the scale of investment in profitable assets, and developing a digital product ecosystem to enhance customer experience.

In the first quarter of 2025, the company recorded a profit after tax of VND 81 billion, down 41% year-on-year and completing more than 18% of the annual plan. The company's leaders said that operating revenue in the first quarter of 2025 did not fluctuate much, but operating expenses increased by 47% year-on-year, mainly due to the recognition of losses on financial assets recorded through profit and loss. Margin lending and sales advances brought in revenue of nearly VND 132 billion, up 10% year-on-year. BSC's outstanding margin lending and advances reached more than VND 6,694 billion, up 28.7% compared to the end of 2024.

In 2024, BSC recorded pre-tax profit of VND 516 billion, mainly from brokerage, margin lending and proprietary trading. Return on equity (ROE) reached 8.5%, total assets reached more than VND 10,315 billion, up 24% compared to the end of 2023.

With the above results, BSC has submitted a profit distribution plan for 2024 and received approval from shareholders to issue more than 22.3 million shares to pay dividends at a rate of 10%. After the issuance, the company's charter capital will increase from VND 2,230 billion to VND 2,453 billion, to serve the needs of expanding and developing business activities.

Hana shareholder advantage when connecting KRX

After 2024, the stock market will experience many fluctuations due to the intertwined impact of domestic and international factors. BSC forecasts that the Vietnamese economy in 2025 will face many breakthrough opportunities with the synchronous implementation of key economic policies and a series of large-scale public investment projects. In particular, the stock market is waiting for a strong boost from the official operation of the KRX system, along with the expectation of upgrading from a "frontier" to an "emerging" market.

Responding to a shareholder's question about the possibility of the Vietnamese stock market being upgraded, Mr. Nguyen Duy Vien, General Director of BSC, said that the prospect of upgrading the Vietnamese stock market has been mentioned for many years, but the prospect of upgrading has never been as close as it is now.

“Based on my subjective assessment, I believe that within this year or early next year, the prospect of upgrading will become a reality. BSC is clearly aware of the prospect of upgrading and has proactively prepared in terms of technology, products and people,” said Mr. Vien.

- Mr. Nguyen Duy Vien, General Director of BIDV Securities Joint Stock Company

Specifically, in terms of technology, BSC upgraded its hardware and software systems to prepare for the case of strong growth in trading volume. Second, BSC CEO assessed that the product is one of the biggest advantages of the KRX system. To prepare in advance, BSC has built an internal process to integrate the products. In terms of human resources, BSC actively conducted internal training courses, sending two working groups to study at Hana - a partner and also a strategic shareholder of BSC in Korea.

Mr. Vien added that this is a huge advantage of BSC compared to other securities companies. In addition, according to this CEO, major shareholder Hana is willing to hand over free products that BSC can use.

Regarding the financial center in Ho Chi Minh City expected to be established in the near future, BSC leaders assess that this will be a big boost for the Vietnamese stock market in particular and the Vietnamese economy in general. At the same time, BSC is also aware that the establishment of the financial center will have a profound impact on the business operations of securities companies.

According to Mr. Vien, BSC has had a branch operating for many years in Ho Chi Minh City and is contributing nearly half of BIDV Securities' activities. At the same time, BSC plans to improve standards and product quality to meet customer requirements. In the event that an international financial center is established, institutional investors will be potential customers of securities companies, requiring securities companies to improve operating standards, management standards and products to meet the criteria of foreign investors. BSC is currently also one of the major units serving this group of investors in the Vietnamese stock market.

Therefore, the CEO of BIDV Securities believes that the company will continue to provide good services to foreign institutional investors. At the same time, BSC will also strengthen IB activities to meet the needs of foreign institutional investors in buying and selling and merging businesses.

Regarding the cooperation plan to establish a fund management company with Edmond de Rothschild, Mr. Chung Jae Hoon, Vice Chairman of the Board of Directors and Deputy General Director of BIDV Securities Joint Stock Company (BSC), said that the two sides have continued to work and negotiate since March 2024. Sharing difficulties and obstacles.

Currently, BSC has completed the dossier to submit to the State Securities Commission (SSC). The SSC continues to review the content of the submitted dossier. At the same time, on the partner side, Edmond de Rothschild is also working with the management agency in Switzerland to review and consider the conditions of the dossier, ensuring its validity. The two sides are in a fairly favorable negotiation process, and it is expected that in June 2025, there will be an official response in Switzerland, which will serve as a basis for completing the establishment of the fund management company. According to the original goal, after being established, the fund management company will leverage the strength of BIDV, Edmond de Rothschild, Hana Securities and BSC to provide Private Banking services to high-end customers in Vietnam.

At the Congress, all reports were approved.

Source: https://baodautu.vn/ceo-bsc-he-lo-loi-the-khi-ket-noi-krx-du-cam-thi-truong-gan-moc-nang-hang-d269171.html