BIDV Securities, DNSE, VIX reduce interest rates

The second quarter profit picture of the securities industry is gradually being revealed. Most businesses recorded growth in after-tax profits compared to the same period last year. Typical examples include Techcom Securities (up 192%, marking a record quarterly growth result), MB Securities (up 75%), Ho Chi Minh City Securities (up nearly 100%, also the highest level in nearly 3 years), Vietcap Securities (up 140%)... Observations show that the breakthrough profits of this group mainly come from the effective proprietary trading segment.

Statistics from FiinTrade as of July 21, securities is one of the industry groups that contributed the most to the increase in total after-tax profit in the second quarter of 2024 compared to the same period last year.

On the contrary, in the profit decline group, BIDV Securities (BSC, code BSI) reported a pre-tax profit in the second quarter down 11% to VND136 billion. The corresponding after-tax profit reached VND114 billion, down 7%. Compared to the profit in the first quarter of 2024, BSI's profit results "weakened" with a decrease of about 17%. Reflecting that, BSI shares lost nearly 20% of their value in the last quarter.

It is worth mentioning that BSC recorded a less positive profit from its proprietary trading segment, contrary to the majority in the industry. Accordingly, in the second quarter, the company only earned 48 billion VND from its proprietary trading activities, while in the same period last year it earned 91 billion VND.

Newcomer to HOSE - DNSE Securities Company recorded a profit after tax of VND34 billion in the second quarter, down 33% year-on-year. Explaining the reason, DNSE said that operating revenue in the second quarter increased by 12% year-on-year, mainly from the brokerage segment. However, similar to BSC, DNSE's profit from FVTPL assets decreased by 81%. Operating expenses increased by 26%, mainly from brokerage activities. In addition, losses from FVTPL assets were recorded at VND24 billion, while in the same period, the reversal was more than VND4 billion. Management expenses also increased by 62% to VND36 billion.

Another name is VIX Securities (code VIX) also announced that after-tax profit in the second quarter decreased by 78% compared to the same period last year, down to 124 billion VND. Profit from FVTPL assets reached 222 billion VND, only half of the second quarter of last year. According to VIX, the stock market witnessed a deep correction in April and June, due to many domestic and foreign factors. This significantly affected the company's proprietary trading portfolio.

In another development, securities companies reporting losses in the second quarter were mainly small-scale such as CV Securities, Wall Street Securities, Beta, JB Vietnam, Eurocapital...

According to the assessment of experts from VNDIRECT Securities Company, the long-term growth potential of the securities industry has been reflected in stock valuations. Therefore, the valuation of this industry is no longer attractive compared to other industries in the context of the long-term prospects related to the implementation of the KRX system, the upgrade to emerging market status and the first Fed rate cut expected in March 2024 have all been delayed.

In the context of businesses continuously increasing capital, investment efficiency is expected to be the main difference in business results of businesses in the industry.

Source: https://laodong.vn/kinh-doanh/chung-khoan-bidv-dnse-vix-giam-lai-1369997.ldo