Want to be in the loop?
subscribe to
our notification
Business News
SECURITIES COMPANIES ADJUST BUSINESS RESULTS AMID MARKET DOWNTURN
Securities companies have to adjust business plans lower due to the volatility of the stock market at present as the market is still seeing negative movements in terms of liquidity and scores.
Unpredictable market scenario
KS Securities Company has just announced adjustments to its business plan. The targeted revenue in 2022 decreased by 56.3 per cent compared to the initial plan, from VNĐ2.04 trillion to VNĐ890 billion. Target profit also declined by nearly 37 per cent to VNĐ450 billion.
In the first 9 months of 2022, this company earned VNĐ719 billion in revenue, 3.49 times higher than the same period last year; profit after tax reached VNĐ430 billion, also 3.8 times higher than the same period last year.
The results achieved still fell short of the targets set out at the beginning of the year. Explaining to shareholders, the company's leaders said that the market had witnessed great fluctuations since April 2022. The company's business strategy had changed in the direction of technology development. These two factors had a strong impact on the business plan of KS Securities.
Except for the rare recovery of scores recorded in July-August 2022, Việt Nam's stock market has moved negatively in terms of both scores and liquidity since the second quarter of this year, often named in the group of world’s worst-performing markets. Even in the past week, VN-Index had a time below the 900 landmark.
Market factors strongly affect revenues from brokerage and proprietary trading activities. For securities companies that rely on self-trading revenue, profits can be reduced quickly. Besides, the current unstable situation of the bond market as investors' confidence in this product declines also causes advisory and issuance activities to shrink. Margin lending is one of the few activities that can maintain growth in some companies thanks to the fact that the loan size has not shrunk and some companies have also raised margin lending rates.
VNDirect Securities Co’s pre-tax profit target is set at VNĐ2.99 trillion for the whole of 2022. In the first 9 months of this year, VNDirect reported a profit of VNĐ1.57 trillion, down 19 per cent over the same period last year and also just completed 52 per cent of the profit plan.
SSI Securities Inc also completed only 52 per cent of the profit target set out in the first 9 months of this year. Previously, at the annual general meeting of shareholders in early May 2022, Chairman of the Board of Directors of SSI Nguyễn Đức Hùng was still quite confident with the target of 30 per cent growth in both revenue and profit.
So far, SSI has not commented on the reduction of the business plan. However, at the annual general meeting of shareholders, shareholders accepted the plan of the Board of Directors to adjust the business targets to suit reality.
While SSI or VNDirect have completed over half of the target, many other companies still fell short of targets, even reporting losses in the first 9 months of this year.
Except for the rare recovery rate recorded in July-August 2022, Việt Nam's stock market traded negatively in both scores and liquidity from the second quarter onwards.
APG Securities Co reported a loss of more than VNĐ49 billion in the third quarter of 2022. This dragged the profit of the first 9 months to negative VNĐ48.3 billion, while the initial profit target was set at VNĐ400 billion.
APEC Securities Co (APS) reported a loss of VNĐ370 billion in the first 9 months of this year. The task in the fourth quarter of 2022 is not feasible as the company wants to earn profit of VNĐ480 billion.
VietinBank Securities (CTS) also earned a profit of VNĐ86 billion in 9 months, equivalent to more than 21 per cent of the target set out. BIDV Securities Co (BSC) completed nearly 35 per cent of the 9-month target, although it was profitable in the third quarter.
Some securities companies still beat targets thanks to careful planning. MB Securities Co (MBS)'s 9-month profit has completed 63 per cent of the target set in the negative scenario. Agribank Securities completed 88 per cent of the profit plan thanks to its initial cautious goal, which was behind the results achieved in 2021.
Source: VNS
Related News
VN SHOULD FOCUS ON DEEPER INTEGRATION INTO THE GLOBAL SUPPLY CHAIN NETWORK
As international businesses look to create new links in the global supply chain, Việt Nam, as well as the rest of the Southeast Asia region, can emerge as a major destination for foreign direct investment (FDI), said economists and policymakers.
VIETNAM’S TEXTILE SECTOR AIMS FOR US$44 BILLION EXPORTS
Vietnam’s textile and garment industry is ramping up production in the final months of 2024 to reach its export target of US$44 billion, according to the Ministry of Industry and Trade. Textile production in September increased by a marginal 0.1% against the previous month but surged by 11.2% year-on-year.
DEX CONNEX VIETNAM 2024: UNLOCK BUSINESS OPPORTUNITIES WITH MALAYSIA'S LEADING TECH COMPANIES
On behalf of Sunwah Group Vietnam and Sunwah Innovations, in collaboration with the Malaysia Digital Economy Corporation (MDEC), we are delighted to cordially invite you to participate in DEX Connex Vietnam 2024 on Thursday, 14 November 2024 in Ho Chi Minh City.
VIETNAM MAY BE ONE OF THE FASTEST-GROWING EMERGING MARKETS BY 2035
The S&P Global Look Forward Journal, titled "Emerging Markets: A Decisive Decade", which considers the opportunities and challenges the next decade will bring for emerging markets' economic growth in terms of energy transition, supply chain integration, and labour productivity.
YEN BAI INDUSTRIAL ZONES AUTHORITY BOOSTING INVESTMENT PROMOTION AND ATTRACTION
The Yen Bai Industrial Zones Authority has actively diversified investment promotion and attraction forms for local industrial zones and achieved positive outcomes in recent years, helping improve the vibrant, high-quality and effective investment and business climate in local industrial zones.
NON-BANK CORPORATE BONDS FORECAST TO RECOVER IN YEAR-END MONTHS
Under an October 2024 corporate bond market report released recently, analysts of the rating agency FiinRatings said that the US Federal Reserve (Fed)'s first interest rate cut in four years was a positive sign for the Vietnamese exchange rate, after the State Bank of Vietnam (SBV) continuously sold the US dollar due to high capital withdrawal demand.