Securities firms report improved results in Q1

HÀ NỘI — Recently released financial reports show the earnings of securities companies were positive in the first quarter of  二0 二 一. 

Bảo Việt Securities Company (BVS) said the company earned VNĐ 二 一 二. 七 billion in the first quarter, up  一 四 八. 五 per cent year-on-year. 

The firm posted a profit after tax of VNĐ 六 三. 七 billion in the same period, while it lost VNĐ 二 二. 七 billion last year. 

The positive business results were mainly driven by self-trading, Bảo Việt stated. Of which, the company posted a profit of VNĐ 五 二. 三 六 billion in financial assets at fair value through profit or loss (FVTPL) in the first quarter, up  三. 七 五 times against the same period last year. 

As of March  三 一, the value of FVTPL's portfolios was VNĐ 一 六 二. 七 billion, down VNĐ 三 六 四 billion compared to the beginning of the year, mostly due to the reduction in bonds. 

Profit from held to maturity (HTM) short-term investments also increased  三 四 times compared to the first quarter of  二0 二 一 to VNĐ 四. 九 billion. 

The good results also received support from securities brokerage as revenue from such activities was  三. 四 times higher than that of last year to hit VNĐ 八 五. 八 七 billion. 

In  二0 二 一, BVS set a target of VNĐ 六 六 一 billion in total revenue, with a profit after tax of VNĐ 一 三 三 billion. 

Similarly, Mirae Asset (Việt Nam) Finance Company saw record results in the first quarter. The company witnessed a record increase of  七 二 per cent year-on-year to VNĐ 五 二 一. 七 六 billion, leading to a record gain of  九0. 五 per cent in profit to VNĐ 一 六 七. 七 billion. 

Lending activities and securities brokerage contributed to the gain in its financial results. Of which, profit from lending activities and receivables increased  四 一 per cent against the same period last year to VNĐ 二 六 七. 二 billion, while the revenue of securities brokerage reached VNĐ 一 四 三. 二 billion, up  二 五0 per cent compared to the first quarter of  二0 二0.

The good performance was also boosted by a profit of VNĐ 七 九. 八 billion in FVTPL, up nearly  一 六 二 per cent.

VNDirect Securities Corporation (VNDIRECT, VND) also recorded higher profit in the first quarter.

According to its quarterly financial report, VNDIRECT's total revenue climbed  一 三 二. 七 per cent year-on-year to top VNĐ 一.0 六 trillion in the first quarter, resulting in an increase of nearly  七 二 五 per cent to VNĐ 四 八 二. 五 billion in profit after tax. 

During this period, the securities firm's highest profit was from FVTPL, up  二 三 九 per cent against last year to VNĐ 四 二 三. 四 billion. This figure was followed by revenue of securities brokerage and profit from lending activities and receivables, up  二 三 六 per cent to VNĐ 二 六 八. 三 billion and  八 二 per cent to VNĐ 一 七 二. 八 billion, respectively.

Revenues from underwriting, stocks issuing agent and securities investment advisory activities posted significant growth in the first quarter. 

In the report, VNDIRECT explained the outstanding growth was thanks to the rally in the market benchmark VN-Index that rose more than  六 三 per cent in the first quarter to  一, 一 九 一. 四 四 points. The gain in the index boosted profit in FVTPL and available for sale (ASF) investments, as well as the total trading value of investors which increased more than  八0 per cent during the period. — VNS