VNDirect buys additional 1,400 billion VND of corporate bonds in 6 months

According to the parent company's newly released financial report, in the second quarter of 2023, operating revenue and after-tax profit of VNDirect Securities Corporation (HoSE: VND) both decreased.

Accordingly, total revenue in the second quarter reached VND 1,587 billion, down 14% compared to the same period in 2022. Previously, brokerage revenue and interest from loans were the two largest sources of revenue for VNDirect, however, these business segments both decreased sharply by 38% and 35% respectively in the last quarter.

Profit from financial assets recorded through profit/loss (FVTPL) made a new step forward when it brought in VND 948 billion, an increase of 9% compared to the same period in 2022. Revenue from custody activities also increased 8 times, reaching nearly VND 37 billion.

Expenses during the period also recorded a decrease with total operating expenses, proprietary losses and brokerage expenses falling by 35%, 33% and 32% compared to the same period. Notably, the company's financial expenses nearly doubled to VND424 billion, mainly due to pressure from interest expenses.

As a result, VNDirect's after-tax profit reached VND421 billion in the second quarter, down 20% year-on-year.

In the first 6 months of 2023, VNDirect Securities recorded revenue of more than VND 2,877 billion and profit after tax of VND 561 billion, down 20% and 56% respectively over the same period. In 2023, VNDirect set a pre-tax profit target of VND 2,000 billion. Compared to the results achieved in the second quarter, the company has only completed 35% of the profit target.

In terms of asset size, as of June 30, the total assets of VND (parent company) reached VND 42,041 billion, a slight increase of 8% compared to the beginning of the period, the increase came from cash and cash equivalents increasing by nearly VND 500 billion compared to the beginning of the period to VND 2,949 billion and the value of FVTPL financial assets increased by 9% compared to the beginning of the year to VND 20,697 billion.

In the FVTPL category, corporate bonds and certificates of deposit are the two largest assets in VNDirect's investment portfolio and have both increased significantly compared to the beginning of the year. More than VND1,400 billion of corporate bonds have been invested, bringing VNDirect's total investment value in these assets to VND9,387 billion.

Certificates of deposit were less focused with an increase of 17% to VND8,617 billion, the remaining VND1,069 billion were listed and unlisted stocks and government bonds.

In the loan portfolio, outstanding margin loans and sales advances from customers in the second quarter reached VND9,309 billion, up 2% compared to the beginning of the year, of which the principal of margin loans reached VND8,993 billion, a slight increase compared to the beginning of 2023.

Regarding loans and financial leasing debts, VND has significantly reduced its debt, including short-term bank loans and issued bonds, with a reduction of more than VND 3,600 billion and VND 650 billion, respectively .

Source