Self-trading loss, SHS's profit in the third quarter of 2024 decreased by 70%

Not only did SHS incur losses in its proprietary trading segment, but both its lending and brokerage segments also declined simultaneously in the third quarter of 2024.

Saigon - Hanoi Securities Joint Stock Company (SHS) has just announced its Q3/2024 financial report with less than positive results.

Proprietary trading was the segment that caused SHS the most trouble, with revenue from this activity reaching only VND 61.9 billion in Q3 2024, a decrease of 68% compared to the same period last year. Meanwhile, losses from proprietary trading amounted to VND 106 billion, resulting in a net loss of over VND 44 billion in this segment.

In addition, two other high-revenue segments, lending and brokerage, both experienced simultaneous declines. Specifically, interest income from loans and receivables reached only VND 110 billion, a decrease of 47%. Brokerage revenue also decreased by 33% compared to the same period last year, bringing it down to VND 49 billion.

As a result, SHS's pre-tax profit in the third quarter of 2024 was only 74 billion VND, a decrease of 70%. This is the most modest profit for SHS since the second quarter of 2023.

For the first nine months of the year, SHS achieved a pre-tax profit of VND 952.7 billion, nearly reaching its profit target of VND 1,035 billion for the whole year of 2024.

SHS stated that the unfavorable market conditions in the third quarter were the reason for the above results. According to the securities company's report, customer deposits decreased sharply compared to the beginning of the year. As of September 30, 2024, customer deposits totaled 989 billion VND, a decrease of more than half compared to the beginning of the year, mainly due to a sharp decline in deposits from securities issuers for principal, interest, and dividend payments.

While many securities companies are investing heavily in margin lending, this segment of SHS has not seen significant fluctuations. The outstanding balance of margin loans at the end of the third quarter was VND 3,666 billion, equivalent to the beginning of the year.

The majority of SHS's assets are allocated to FVTPL assets, totaling VND 6,902 billion, accounting for 53% of total assets and increasing by 37% compared to the beginning of the year. The largest investments are in listed stocks (VND 3,703 billion) and listed bonds (VND 1,694 billion).

The large-cap stocks that SHS currently holds include FRT,FPT , MWG, and VPB. VPB is currently down 11%. However, VPB has since rebounded with significant gains compared to the end of September. In addition, SHS is currently down over 326 billion VND from other stocks.

Regarding financial assets available for sale, AFS and SHS hold two stocks,SHB and TCD. While SHB has a temporary profit of over 314 billion VND, TCD is currently recording a loss of over 129 billion VND.