Securities firms report improved results in Q1
Recently released financial reports show the earnings of securities companies were positive in the first quarter of 2021.
Earnings of securities companies were positive in the first quarter of 2021.
Bao Viet Securities Company (BVS) said the company earned 212.7 billion VND in the first quarter, up 148.5 percent year-on-year.
The firm posted a profit after tax of 63.7 billion VND in the same period, while it lost 22.7 billion VND last year.
The positive business results were mainly driven by self-trading, Bao Viet stated. Of which, the company posted a profit of 52.36 billion VND 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 162.7 billion VND, down 364 billion VND 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 4.9 billion VND.
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 85.87 billion VND.
In 2021, BVS set a target of 661 billion VND in total revenue, with a profit after tax of 133 billion VND.
Similarly, Mirae Asset (Vietnam) Finance Company saw record results in the first quarter. The company witnessed a record increase of 72 percent year-on-year to 521.76 billion VND, leading to a record gain of 90.5 percent in profit to 167.7 billion VND.
Lending activities and securities brokerage contributed to the gain in its financial results. Of which, profit from lending activities and receivables increased 41 percent against the same period last year to 267.2 billion VND, while the revenue of securities brokerage reached 143.2 billion VND, up 250 percent compared to the first quarter of 2020.
The good performance was also boosted by a profit of 79.8 billion VND in FVTPL, up nearly 162 percent.
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 percent year-on-year to top 1.06 trillion VND in the first quarter, resulting in an increase of nearly 725 percent to 482.5 billion VND in profit after tax.
During this period, the securities firm's highest profit was from FVTPL, up 239 percent against last year to 423.4 billion VND. This figure was followed by revenue of securities brokerage and profit from lending activities and receivables, up 236 percent to 268.3 billion VND and 82 percent to 172.8 billion VND, 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 percent 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 percent during the period./.VNS
Realtors and securities investors have been pocketing big money in recent months.
Many commercial banks now pay trillions of dong worth of dividends to shareholders and have completed restructuring after a decade of difficulties. As a result, their share prices are expected to rise.