MB Securities is holding more than 1,600 billion VND in bonds.

MB Securities Corporation (stock code: MBS) recently announced its separate financial report for the first quarter of 2023. Accordingly, MBS's operating revenue reached nearly VND 336 billion, down 45% over the same period.

The main reason comes from the securities consulting and brokerage sector, in which consulting activities alone decreased by 86% to 3.2 billion VND, while securities brokerage revenue, accounting for nearly 28% of operating revenue, also decreased by 64% to 93.1 billion VND.

Revenue from loan interest and receivables (accounting for 36% of operating revenue) also decreased by 43%, to more than VND120 billion. In contrast, interest from held-to-maturity (HTM) investments and revenue from securities custody increased by 40% and 24%, respectively, to VND38.4 billion and VND5.4 billion.

In the proprietary trading segment, profit from financial assets recorded through profit and loss (FVTPL) was almost flat compared to the same period at VND68 billion. However, FVTPL loss decreased sharply from over VND24 billion to nearly VND257 million, helping MBS's proprietary trading activities earn a net profit of over VND67 billion.

In addition, the company's operating expenses decreased by nearly half compared to the same period, down to VND 115 billion. As a result, MBS's after-tax profit reached more than VND 121 billion, down 39% compared to the first quarter of 2022. However, this figure has increased compared to the fourth quarter of 2022 by VND 72 billion.

On the balance sheet, as of March 31, 2023, the company's total assets reached VND 9,561 billion, down 10% from the beginning of 2023, of which the held-to-maturity (HTM) investments decreased by 8% compared to the beginning of the year to VND 1,493 billion, mainly term deposits of less than 1 year.

In the financial assets recorded through profit/loss (FVTPL) section, of the total VND407 billion, VND406 billion is deposit certificates, VND888 million is stock portfolio, the company does not hold any bonds. This item has decreased sharply compared to the VND2,200 billion at the beginning of the year, mainly due to the decrease in deposit certificates.

In addition, MBS's available-for-sale (AFS) financial assets portfolio also recorded a total book value of VND2,794 billion, an increase of about VND1,400 billion compared to the beginning of the year, including VND118 billion of unlisted stocks, VND100 billion of fund certificates and VND1,625 billion of bonds.

In the loan portfolio, outstanding margin loans and sales advances from customers in the first quarter reached VND3,732 billion, a slight decrease compared to the beginning of the year, mainly margin loans reaching VND3,663 billion, up 4.8% within 3 months.

MBS stock performance over the past year (Source: Trading View).

MBS Securities is expected to present its 2023 business plan at the General Meeting of Shareholders on April 21, with a revenue target of VND 2,700 billion, an increase of 37% compared to 2022, and pre-tax profit of VND 900 billion, an increase of 36% over the same period.

In addition, MBS also aims to be in the top 5 brokerage market share this year, before which the company dropped in the HoSE brokerage market share chart in 2022. Thus, with the first quarter results, the company has completed 17% of the annual profit target.

On the stock market, at the end of the trading session on April 20, MBS shares closed up 1.83% to VND 16,700/share. Compared to the bottom in November 2022, this stock has doubled in market price .

Source: https://www.nguoiduatin.vn/chung-khoan-mb-dang-nam-giu-hon-1600-ty-dong-trai-phieu-a604041.html