Margin lending interest soars, KAFI still hasn't completed its annual plan

KAFI's loans increased by VND4,200 billion in 2024 and were nearly 5 times the loan balance at the beginning of the year, of which 99.3% was for margin lending activities.

KAFI's loans increased by VND4,200 billion in 2024 and were nearly 5 times the loan balance at the beginning of the year, of which 99.3% was for margin lending activities.

KAFI Securities JSC has just announced its financial report for the fourth quarter of 2024 with operating revenue in the period increasing sharply by 102% over the same period last year, reaching 340 billion VND.

KAFI's activity with the strongest profit growth in the fourth quarter was Interest from loans and receivables, reaching VND 94.7 billion, 4 times higher than the same period in 2023.

This period, KAFI also recorded high revenue from financial activities of 4.4 billion VND, of which the difference from exchange rates contributed more than 3.3 billion.

Although interest expenses increased sharply by 77%, the high increase in revenue helped KAFI's after-tax profit in the last quarter of 2024 reach VND 86.3 billion, equivalent to a growth of 38%.

In 2024, KAFI's total operating revenue will reach VND955.9 billion, nearly double the revenue in 2023. In particular, all business segments have grown. In particular, the strongest increase is in loan interest and receivables, up to 276%, reaching VND260 billion.

According to its independent financial report, the total assets of this securities company reached VND16,054 billion at the end of 2024, an increase of more than VND9,500 billion compared to the beginning of the year. Most of the assets are in FVTPL assets (VND8,879 billion) and loans (VND5,359 billion).

Of which, loans increased by VND 4,200 billion in 2024, equivalent to nearly 5 times the loan balance at the beginning of the year, of which 99.3% was for margin lending activities.

KAFI's margin lending value to increase sharply in 2024

KAFI said that the securities of investors participating in margin trading are held by the company as collateral for this loan of the investor with the company. As of December 31, 2024 and December 31, 2024, the face value of the securities used as collateral for margin trading loans is VND 6,038 billion and VND 1,350 billion, respectively, the market value of the securities used as collateral for margin trading loans is VND 12,793 billion and VND 2,857 billion, respectively.

Regarding the proprietary trading portfolio, financial assets recorded through profit and loss accounted for VND8,842 billion, double that at the beginning of the year. Of which, VND7,044 billion was put into valuable papers and term deposits by KAFI and more than VND1,086 billion was unlisted bonds of credit institutions. Only about VND560 billion was invested by KAFI in listed stocks.

Over the past year, the company has increased its charter capital from VND1,500 billion to VND5,000 billion. Liabilities also increased sharply from VND4,894 billion at the beginning of the year to VND10,783 billion at the end of the year. Of which, more than VND10,474 billion is short-term financial asset leasing debt, including 60% from banks and financial institutions and the rest from individual organizations under K-Wealth transaction packages and third-party loans.

Source: https://baodautu.vn/lai-tu-cho-vay-margin-tang-vot-kafi-van-chua-hoan-thanh-ke-hoach-nam-d241288.html