How did securities companies do last year?

The brokerage segment used to contribute greatly to the profits of securities companies, but this year, revenue from this segment is not very prominent. In VND, in the fourth quarter of this year, this segment brought in more than 216 billion VND in revenue, an increase of about 5% over the same period last year. However, the cost for this activity is quite large at up to 194 billion VND, an increase of nearly 38% over the same period. For the whole year 2023, brokerage revenue will decrease by 30% compared to 2022, while costs are quite large, causing profits from this segment to narrow sharply in VND.
At other securities companies, there is not much difference. TCBS recorded that brokerage revenue in the fourth quarter decreased from VND 141 billion in the same period last year to VND 136 billion, while operating costs increased from VND 25 billion in the same period to VND 62 billion. Accordingly, in 2023, TBCS's brokerage segment profit will only be about 40% of 2022. The profit margin of the brokerage segment is becoming increasingly weak, showing that the competition in this segment in the market is quite large when many companies participate. The trend of reducing transaction fees or increasing commissions for the sales department is being implemented by many companies in the goal of finding new sources of customers, causing brokerage activities to no longer contribute much to their pro
Outstanding margin debt continues to be "good season"In general, in 2023, the total loan balance of securities companies (mainly margin loans) has expanded compared to the beginning of the year. Statistics from VietstockFinance with 61 securities companies show that the total outstanding loans of companies is approximately VND 180 trillion, up 8% and 47% compared to the end of the third quarter and compared to the beginning of the year. In the context of the VN-Index only increasing by more than 10% during the year, the above numbers can be said to be quite impressive. For example, at VPBankS, outstanding loans increased by 55% compared to the end of the third quarter, equivalent to an increase of more than 2.5 trillion VND and an increase of more than 10% compared to the beginning of the year. MBS had outstanding loans at the end of the year of more than 9.2 trillion VND, an increase of 41% compared to the end of the third quarter and an increase of over 140% compared to the beginning of the year, or like in HCM, the loan balance at the beginning of the year was only 7.1 trillion VND but at the end of the fourth quarter it was more than 12 trillion VND, corresponding to increases of 7% and 64%.
TBCS is a bright name when recording more than 16,000 outstanding loans at the end of the year, an increase of 30% compared to the end of the third quarter and an increase of 76% compared to the beginning of the year, surpassing other giants in the industry. However, if only considered in the fourth quarter, the margin growth of companies with discrepancies such as SSI decreased by 1% compared to the end of the third quarter; Meanwhile, VND decreased by 13%; MiresAsset also decreased by more than 650 billion VND, equivalent to a decrease of 4%. This also partly reflects the market fluctuations this quarter. Overall, increasing charter capital has helped securities companies have more room for lending, promoting more capital flow to the market. In addition, the differentiation of margin balance shows that the advantage is given to companies with enough resources or large customer channels.
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Many securities companies have appeared on the list of businesses with trillion-dollar profits in 2023. TCBS Company recorded more than 3 trillion VND in pre-tax profit, a slight decrease of 1% compared to 2023. Next is VND with 2 4 trillion VND, an increase of 44% compared to last year. In addition, VPBS and VIX can be mentioned with about 1.2 trillion VND in pre-tax profit; VPS and HCM are about 1 trillion VND. On the contrary, many companies are still holding large losses. TVSI Company reported a pre-tax loss of 394 billion VND, while the previous year's profit was 250 billion VND; APF lost 172 billion VND, while in 2022 it lost a strong loss of 562 billion VND; CV securities also increased its loss from 1 billion VND to 13 billion VND.
It is also impossible not to mention businesses that escaped spectacular losses during the year such as APG, TVB, VDC, BMS... Entering 2024, the securities industry continues to be an industry with its own investment story for investors to pursue. Low interest rates continue to create conditions for cash flow to flow to the securities channel. The KRX trading system is expected to help improve liquidity; the target of upgrading the market in 2025 or the story of strong capital increase from securities companies. "The number of securities accounts is increasing rapidly but currently only reaches about 7% of the population, this is a very low rate compared to other countries in the region and the world, this rate in Taiwan is 95%, Korea China is 76%, America is 56% and China is also 13%. This shows that the Vietnamese market still has a lot of room for growth in the long term," Agriseco said. At the end of the trading session on January 24, the securities group continued to lead the growth of the whole market with an average increase of 0.71%, while the VN-Index decreased slightly by more than 4.5 points, sellers pressured the market. Reversing the possibility is part of investors' goal of taking profits to prepare for Tet