VPS Securities brings 8,000 billion to lend and buy and sell financial assets

VPS Securities Joint Stock Company recently announced its financial report for the first quarter of 2023. Accordingly, the company's operating revenue reached VND 1,362 billion, down 46% over the same period, mainly due to the fact that financial consulting revenue did not record revenue in this quarter, while in the same period it reached VND 2.1 billion.

The securities brokerage segment also decreased by nearly 60% to VND411.3 billion. However, the company's securities custody segment alone increased by 180% to VND32.6 billion this quarter.

On the contrary, the proprietary trading segment was somewhat better when the loss from financial assets recorded through profit/loss (FVTPL) decreased by nearly 50%, to VND 588 billion, while the profit from financial assets (FVTPL) decreased by 37%, reaching VND 668 billion, so this segment still made a profit of VND 15 billion, while in the same period, it lost more than VND 214 billion.

In terms of expenses, VPS's securities brokerage expenses and proprietary trading expenses decreased by 53% and 40% year-on-year, respectively, to VND360 billion and VND65.2 billion. After deducting expenses, VPS recorded a 52% decrease in after-tax profit to VND116.46 billion.

On the balance sheet, as of March 31, 2023, the company's total assets reached VND 21,440 billion, a slight increase of 6% compared to the beginning of 2023, however, cash and cash equivalents decreased by more than VND 8,000 billion, to only VND 944 billion.

Notably, the company's short-term asset structure changed when cash flows in cash and cash equivalents were converted into FVTPL financial assets, loans and receivables from the sale of financial assets.

Therefore, VPS's financial assets recorded through profit/loss (FVTPL) reached nearly VND 8,968 billion, 2.4 times higher than at the beginning of the year, mainly due to a sharp increase in investments in money market instruments.

In addition, VPS also holds VND23.6 billion in listed shares, VND15.4 billion in unlisted shares and VND78.9 billion in bonds.

Loans and receivables amounted to VND10,865 billion, up 69% compared to the beginning of the period, while VPS's current equity is only VND8,591 billion.

In the loan portfolio, outstanding margin loans and sales advances from customers in the first quarter reached VND7,434 billion, up 10% compared to the beginning of the year, of which the principal margin loan reached VND7,052 billion, up more than VND1,100 billion in just 3 months.

In the first quarter of 2023, VPS Securities continued to lead the brokerage market share on all three exchanges with Ho Chi Minh City Stock Exchange (HoSE) with a market share of 15.67%, Hanoi Stock Exchange (HNX) with a market share of 25%, UPCoM with a market share of 25.54%, and derivatives trading with a market share of 61.54% .

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