HÀ NỘI – Saigon Securities Inc (SSI) and HCM City Securities Corporation (HSC) have reported better profits in the second quarter and first half of 2018 despite volatile stocks that have dampened the performance of most of listed securities firms.

SSI achieved pre-tax profit of VNĐ872 billion (US$38 million) on revenue of VNĐ2.1 trillion in the first half of the year, an year-on-year increase of 19.3 per cent and 60.3 per cent. In the second quarter, SSI posted VNĐ392.7 billion in profit and VNĐ1.03 trillion in revenue.

HSC on Friday announced at a press conference that its revenue and post-tax profit for the first six-month period of 2018 stood at VNĐ1.04 trillion and VNĐ472 billion, on year increases of 98 per cent and 104 per cent.

The company in the past quarter recorded revenue of nearly VNĐ184 billion and post-tax profit of VNĐ147.2 billion in post-tax profit.

Proprietary investment and brokerage services contributed the most to the growth of the two securities firms’ earnings in the first half of the year.

HSC said on Friday at a press conference that revenue from proprietary trading grew 130 per cent on-year and the figure for advisory services was nearly 120 per cent. Other activities that also improved included margin lending with a 53 per cent growth rate.

“Revenue from advisory services rose nearly 120 per cent because the total trading value of the stock market in the first six months of 2018 increased 79 per cent on-year and the firm’s brokerage market share also increased,” HSC said in its financial statement.

In addition, proprietary investment helped HSC earn big in the context of positive market conditions prior to April after the firm in the first quarter of the year offloaded shares bought in 2017, the company said.

“The operation of the derivatives market has also assisted HSC to create new products and services since it was launched in August 2017.”

SSI and HSC are currently among the biggest securities firms in Viet Nam, accounting for 23.1 per cent and 12.8 per cent of market shares on the HCM Stock Exchange. They are now occupying 11.2 per cent and 8.6 per cent of market share on the Hà Nội Stock Exchange.

Other securities firms that have also revealed positive earnings for the second quarter and first half of 2018 include MB Securities JSC, whose post-tax profit soared 900 per cent on-year to VNĐ55 billion, also thanks to strong growth of revenue from proprietary trading, advisory services and margin lending.

Other firms suffer

Rong Viet Securities JSC (VDSC) recorded a 49 per cent yearly increase in its first-half revenue, which reached VNĐ240 billion, however, its six-month post-tax profit fell 5 per cent  on-year to VNĐ54 billion.

In the second quarter, VDSC posted VNĐ112 billion in revenue, up 11 per cent on-year, but the firm reported VNĐ4.7 billion in post-tax profit, down 85.6 per cent on-year due to expenses.

Asia Commercial Bank Securities JSC (ACBS) posted a loss of VNĐ17 billion in the second quarter, which was a big reverse compared to last year’s second-quarter profit of VNĐ53 billion. Its revenue reached VNĐ128 billion in the second quarter, representing 106 per cent year-on-year increase.

According to ACBS, the company suffered a loss in the second quarter because its total cost and losses from financial assets increased due to the downtrend of the stock market. Its total cost surged 829 per cent to VNĐ109 billion.

Compared to the first six months of 2017, ACBS posted a 72 per cent increase in revenue to VNĐ314 billion. However, its after-tax profit was reduced by 39 per cent to VNĐ49 billion. — VNS