Everest Securities JSC’s operational revenue plummeted by 74% from last year in 3Q24, dwindling to 36 billion dong. — Vietnam News
HANOI: While the market eagerly focuses on the third-quarter business results of securities firms, the weak market’s liquidity and declining performance of the brokerage sector are undermining the group’s health.
A number of securities firms that have disclosed their financial statements for the third quarter of 2024 (3Q24) are witnessing a significant downturn in profits compared to the previous year, with some even posting substantial losses.
Specifically, Everest Securities JSC’s (EVS) operational revenue plummeted by 74% from last year in 3Q24, dwindling to 36 billion dong.
Nearly all sectors, including proprietary trading, lending and brokerage, experienced notable declines. The escalation of operational expenses exacerbated its losses to over 35 billion dong, making it the most severe loss-making securities company in the sector to date.
The third-quarter losses have led to a steep drop in EVS’s accumulated profits before tax for the first nine months of 2024, which now stand at just under five billion dong, marking an 88% decrease from the same period last year.
Similarly, Wall Street Securities Company (WSS) disclosed a net loss of 8.8 billion dong in 3Q24, attributing part of this downturn to increased losses from fair value through profit or loss proprietary trading activities.
This marks the fifth consecutive quarter of losses for WSS.
This performance has propelled the company’s cumulative losses to 33 billion dong over the first nine months, casting a shadow over the previously projected profit after tax of 4.4 billion dong for the year.
CV Securities Corp (CVS) reported a nearly 10 billion dong loss before tax in 3Q24, marking the company’s ninth successive quarter of operating losses.
At the end of September, CVS had generated over seven billion dong in operating revenue, a 115% surge from the corresponding period last year, yet posted a loss before tax of nearing 24 bilion dong.
While Capital Securities JSC managed to secure a 3.2 billion dong profit in 3Q24 through stringent cost controls, it reported a loss after tax of 2.6 billion dong for the first nine months, compared to a 10.6 billion dong profit during the same period last year.
Stanley Brothers Securities Incorporation also registered a loss of nearly six billion dong in 3Q24.
Several other securities firms witnessed reduced profits, such as FPT Securities JSC recorded a profit before tax of 103 billion dong in 3Q24, down significantly 51% year-on-year.
In the recent business cycle, the stock market has traded sideways due to global macro-economic concerns and domestic natural disasters, restricting cash inflows.
While the market benchmark’s VN-Index has risen by approximately 12% this year, corrections in April and August have tempered its growth to as low as 5%.
This volatility has deterred investors from disbursing funds, with the index repeatedly failing to breach the 1,300 mark, constraining liquidity. — Viet Nam News/ANN
