Securities firms report improved results in Q1

April 22, 2021 - 08:29
Recently released financial reports show the earnings of securities companies were positive in the first quarter of 2021. 
VNDIRECT's employees talking to a customer in its office. Photo

HÀ NỘI — Recently released financial reports show the earnings of securities companies were positive in the first quarter of 2021. 

Bảo Việt Securities Company (BVS) said the company earned VNĐ212.7 billion in the first quarter, up 148.5 per cent year-on-year. 

The firm posted a profit after tax of VNĐ63.7 billion in the same period, while it lost VNĐ22.7 billion last year. 

The positive business results were mainly driven by self-trading, Bảo Việt stated. Of which, the company posted a profit of VNĐ52.36 billion in financial assets at fair value through profit or loss (FVTPL) in the first quarter, up 3.75 times against the same period last year. 

As of March 31, the value of FVTPL's portfolios was VNĐ162.7 billion, down VNĐ364 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 34 times compared to the first quarter of 2021 to VNĐ4.9 billion. 

The good results also received support from securities brokerage as revenue from such activities was 3.4 times higher than that of last year to hit VNĐ85.87 billion. 

In 2021, BVS set a target of VNĐ661 billion in total revenue, with a profit after tax of VNĐ133 billion. 

Similarly, Mirae Asset (Việt Nam) Finance Company saw record results in the first quarter. The company witnessed a record increase of 72 per cent year-on-year to VNĐ521.76 billion, leading to a record gain of 90.5 per cent in profit to VNĐ167.7 billion. 

Lending activities and securities brokerage contributed to the gain in its financial results. Of which, profit from lending activities and receivables increased 41 per cent against the same period last year to VNĐ267.2 billion, while the revenue of securities brokerage reached VNĐ143.2 billion, up 250 per cent compared to the first quarter of 2020.

The good performance was also boosted by a profit of VNĐ79.8 billion in FVTPL, up nearly 162 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 132.7 per cent year-on-year to top VNĐ1.06 trillion in the first quarter, resulting in an increase of nearly 725 per cent to VNĐ482.5 billion in profit after tax. 

During this period, the securities firm's highest profit was from FVTPL, up 239 per cent against last year to VNĐ423.4 billion. This figure was followed by revenue of securities brokerage and profit from lending activities and receivables, up 236 per cent to VNĐ268.3 billion and 82 per cent to VNĐ172.8 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 63 per cent in the first quarter to 1,191.44 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 80 per cent during the period. — VNS