Market boom: Huge cash flow pouring in, securities companies make huge profits

Of the total of more than VND31,100 billion that VPBank Securities borrowed from banks, nearly VND2,360 billion was borrowed from BIDV, more than VND2,400 billion from VietinBank and nearly VND3,000 billion from TPBank. The remaining nearly VND23,400 billion was borrowed from other banks.

Editor's note:

In 2025, credit is forecast to increase sharply to support economic growth targets. Many experts emphasize that this capital flow needs to flow into priority areas, creating sustainable added value.

In fact, the cash flow into the stock market is exploding, from about 1 billion USD/session to nearly 2 billion USD/session, thanks to the push of individual investors and new capital. Notably, a significant portion comes from securities companies with strong support from banks.

VietNamNet reviews the trillion-dollar loans that banks have "poured" into the securities companies.

The stock market has just recorded an explosive trading session with liquidity and scores reaching new peaks. The VN-Index skyrocketed 40 points, reaching a record high of 1,565.03 points on the morning of August 5 before cooling down, closing the session at 1,547.15 points.

Liquidity reached a new record high of over VND85,700 billion (nearly USD3.3 billion) on the three exchanges. HoSE recorded a record transaction of over VND78,100 billion, while HNX also exploded with over VND5,700 billion. UpCom was nearly VND1,930 billion.

So where does the large cash flow come from to support such an explosive stock market growth?

VPBank Securities Joint Stock Company (VPBankS) is also a "big player" in the stock market with loans worth about 17,700 billion VND in securities lending.

VPBank lends over 17,700 billion VND in securities. Source: Financial statements

Where does VPBankS get money to lend securities?

According to the financial report of VPBank Securities JSC (VPBankS), as of the end of June, loans reached over VND17,757 billion, a sharp increase compared to the figure of over VND9,512 billion at the beginning of the year. Of which, over VND17,635 billion was for margin lending, a sharp increase compared to VND9,447 billion at the beginning of the year, and over VND104 billion was for loans for customers' prepayment of sales.

This is considered an effective profit channel of VPBank Securities. Normally, at securities companies, these margin trading loans have short terms and interest rates from about 7.5% - 13%/year. Meanwhile, securities companies borrow from banks at quite competitive interest rates, only about 7%/year.

In the first 6 months of the year, VPBank earned nearly 722 billion VND in profit after tax, a sharp increase compared to nearly 400 billion VND in the same period last year. Of which, interest from loans and receivables was nearly 646 billion VND.

Financial report for the first 6 months of VPBank Securities JSC.

According to the semi-annual report, as of the end of June 2025, VPBankS recorded short-term loans of more than VND 32,200 billion, much higher than the level of more than VND 9,100 billion at the beginning of the period. Of which, there were nearly VND 22,000 billion in loans from credit institutions and more than VND 10,230 billion in loans from other organizations and individuals.

In its explanation to the State Securities Commission, VPBank said that its second-quarter after-tax profit reached more than VND441 billion, up 73% year-on-year, with outstanding loans "increasing sharply", nearly double that of the same period last year.

Revealing the banks pumping money

In fact, VPBankS did not announce details, but only pointed out 3 names.

Specifically, by the end of the second quarter of 2025, of the amount borrowed from banks, VPBankS borrowed more than VND 2,200 billion from the Vietnam Joint Stock Commercial Bank for Investment and Development ( BIDV ), nearly VND 1,500 billion from the Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) and nearly VND 1,400 billion from TPBank (TPB). The remaining more than VND 16,900 billion was borrowed from other banks but did not specifically name them. This is a very large number compared to the general borrowing rate. The borrowing interest rate is "from 3.5% or more".

During the period, VPBank recorded total short-term loans of more than VND524,700 billion (nearly USD19.9 billion). Of which, more than VND31,100 billion was borrowed from banks and more than VND493,600 billion (nearly USD18.7 billion) was borrowed from other entities.

Of the total of more than 31,100 billion VND borrowed from banks, nearly 2,360 billion VND was borrowed from BIDV, more than 2,400 billion VND from VietinBank and nearly 3,000 billion VND from TPBank. The remaining nearly 23,400 billion VND was borrowed from other banks.

VPBank recorded more than VND31,100 billion in short-term loans from banks, according to its semi-annual report. Source: Financial statements

So, who lent VPBankS 23,400 billion VND during the period to serve the attractive securities lending activities as well as business activities?

VPBankS is a subsidiary of Vietnam Prosperity Joint Stock Commercial Bank (VPBank - VPS). Previously, VPBank also had a securities company but sold it to focus on banking and consumer credit lending.

In January 2022, VPBank acquired ASC Securities and then rapidly increased its capital to VND 8,920 billion in April 2022, changing its name to VPBank Securities (VPBankS) at the end of May of the same year.

Thanks to financial strength, at the end of December 2022, VPBankS increased its capital to 15,000 billion VND.

By the end of the second quarter of 2025, VPBankS will have total equity of nearly VND 18,200 billion, of which the owner's contributed capital is VND 15,000 billion.

By the end of 2024, Vietnam Prosperity Joint Stock Commercial Bank holds 99.95% of VPBank's shares, equivalent to more than VND 14,993 billion in contributed capital.

Shareholder structure at VPBankS.

In fact, mutual borrowing activities in the financial market are very active. Securities companies, whether they are subsidiaries of banks or not, all have such activities. Many of them also have loans from VPBank.

Commercial banks can inject money (provide capital) to securities companies through many legal forms such as: direct and indirect lending (increasing capital, supporting liquidity), buying bonds, repo securities (buying and selling back), and granting interbank credit limits.

The market is booming, a list of banks pouring huge capital into Techcom Securities By the end of June, Techcom Securities Company recorded a total outstanding loan balance and investment portfolio (held to maturity, investment assets) of about 60.8 trillion VND (2.3 billion USD), of which short-term loans alone were more than 33.8 trillion VND (1.3 billion USD).

Source: https://vietnamnet.vn/thi-truong-bung-no-dong-tien-khong-lo-do-vao-cong-ty-chung-khoan-lai-dam-2429178.html