During the 4th Quarter 2023 Financial Reporting Season, the business situation at a number of securities companies (SCs) showed not very positive results. Some SCs even had to report losses despite the market showing some signs of recovery.
Specifically, JB Securities Vietnam (JBSV) recorded a net loss of nearly VND 11 billion in its business results in the fourth quarter of 2023. The reason was that increased advertising and promotion costs pushed JBSV's management costs up to VND 30 billion, an increase of 2.4 times over the same period.
Many securities companies suffered losses in the fourth quarter of 2023 (Photo TL)
JBSV's revenue mainly comes from interest on financial assets recognized through profit/loss (FVTPL) and financial assets held to maturity (HTM). The Company's brokerage revenue and lending interest are low.
In addition, Bao Minh Securities (BMSC) also recorded a loss of up to VND 44 billion in the fourth quarter of 2023. The reason came from losses in proprietary trading activities, recording costs of up to more than VND 21 billion. Meanwhile, the loss of FVTPL financial assets in the fourth quarter also amounted to VND 60 billion.
Wall Street Securities also recorded a loss in the fourth quarter of 2023. The company's operating revenue for the period reached VND41 billion, mainly recorded from the difference in revaluation of FVTPL financial assets of VND36.7 billion. Brokerage revenue halved to VND260 million. Meanwhile, the company lost VND53 billion from proprietary trading. As a result, Wall Street Securities reported a loss of VND14.8 billion while in the same period last year it had a profit of VND2.8 billion.
Besides, some other units also announced unsatisfactory business results but in return the loss was not too large, just under 1 billion VND such as Stanley Brothers Securities (SBSI), EuroCapital Securities (ECC)...
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