Half of securities firms incur losses in Q3
05-11-2012 22:26:33+07:00
Half of securities firms incur losses in Q3
Nearly 50% of securities enterprises in Vietnam posted up losses in their third quarter financial statements given a steady decline of stock indices and falling liquidity.
Many securities enterprises met difficulties as revenues from brokerage, consulting and stock investment declined. Statistics show that around 30 out of 62 brokers have reported losses in their financial reports submitted to the two stock watchdogs up to now.
Among loss makers, some enterprises have suffered losses for a long time, becoming insolvent and having their operations suspended. Specifically, Rubber Securities Company (RUBSE) posted an accumulative loss of over VND42 billion, exceeding its equity of VND40 billion.
According to RUBSE’s financial statement, it obtained VND1.2 billion in revenue but its operation cost was VND2.6 billion. Ending the third quarter, RUBSE had VND683 million in cash and cash equivalents, down by VND2.1 billion compared to the previous quarter.
The State Securities Commission (SSC) has suspended operation of the broker for six months starting from October 29 for failing to ensure financial adequacy ratio. Earlier, Truong Son and Hanoi securities firms have also been suspended for the same reason.
Kim Long Securities Company (KLS) incurred the biggest loss of VND91.5 billion in the third quarter. The loss resulted from the fact that KLS had to deduct nearly VND120 billion for its reserve fund as stocks in its portfolio dropped in prices.
Saigon-Hanoi Securities Company saw its revenues tumbling 70% to VND16.3 billion as of the end of the third quarter while its management and operation cost was up to VND67 billion. As a result, the broker lost VND59 billion in the third quarter and VND400 billion in the January-September period.
Meanwhile, Sacombank Securities Company (SBS) obtained around VND9 billion in after-tax profit in the third quarter after incurring losses for a long time. A representative of SBS explained that the enterprise had scaled down its business, staff and stock investments, reducing deductions for reserve funds. However, SBS still lost over VND129 billion in the nine months.
Brokers earning large gains, meanwhile, included HCMC Securities Corp., Saigon Securities Inc., FPT Securities Company and VietinBank Securities Company.
According to SSC, restructuring of securities enterprises keeps moving on. The number of brokers will be reduced as SSC will tighten regulations on financial safety and transparency.
vietnamnet
