East Asia Securities reports 3 times higher profit in Q2/2023

Recently, Dong A Bank Securities Company Limited (DAS) announced its financial report for the second quarter of 2023 with operating revenue reaching nearly VND 9 billion, down 3% over the same period last year.

In the second quarter of 2023, DAS's interest from loans and receivables reached VND3.4 billion, down 4% year-on-year; securities brokerage revenue decreased by 37% to VND3.3 billion. These are the two activities with the largest proportion in the company's operating revenue, each accounting for about 38%.

Meanwhile, DAS's profit from financial assets recorded through profit/loss (FVTPL) reached VND 1.6 billion, a negative VND 401 million over the same period.

On the contrary, DAS's operating expenses decreased sharply by 49% to VND3 billion. The company recorded a loss of more than VND7 million from FVTPL assets, compared to VND1.3 billion in the same period last year. In addition, expenses from the proprietary trading, securities brokerage and financial consulting segments also decreased by 47%, 34% and 65% respectively compared to the same period.

After deducting all expenses, Dong A Securities' after-tax profit increased 3.4 times compared to the same period in 2022, reaching VND 2.7 billion.

In the first 6 months of the year, the company's operating revenue decreased by 29% to VND16.2 billion. Profit after tax reached VND3.7 billion, down 35% compared to the same period last year.

On the balance sheet, as of June 31, 2023, the company's total assets reached VND 231 billion, an increase of 1% compared to the beginning of 2023. Of which, the financial assets recorded through profit/loss (FVTPL) decreased by 57% compared to the figure at the beginning of the year, to VND 19 billion, mostly fixed term deposits over 3 months worth VND 15 billion.

In terms of available-for-sale (AFS) financial assets, there was little change compared to the beginning of the year, reaching VND137 billion at the end of the June 2023 quarter, mainly unlisted stocks. In terms of loans, the outstanding margin loan balance was VND123 billion, up 61% compared to the beginning of the year and up 54% compared to the end of the first quarter.

At the same time, the company's payables decreased by 20% compared to the beginning of the year to VND5.5 billion. The company reduced short-term payables to employees by 32% to VND705 million; long-term payables to suppliers also decreased by 33% to VND1.5 billion .

Source