SSI reports higher profit despite lower revenue in Q3
SSI reports higher profit despite lower revenue in Q3
Saigon Securities Inc has reported lower revenues but higher profits in the third quarter.
Sales was down 16.88 per cent to VND354.35 billion (US$15.8 million), and profit before tax was 10 per cent up at VND267.55 billion ($11.9 million).
Turnover from institutional trading reached VND114.3 billion ($5.1 million) in the period, declining 42 per cent was due to the lower trading liquidity in the quarter.
The firm estimated consolidated profit for the first nine months was VND768 billion ($34.28 million).
SSI said concerns over foreign exchange rates, declining oil prices, and the Trans-Pacific Partnership (TPP) negotiations brought trading down in the third quarter, which hit revenues.
However, there were many M&A deals and private placement of securities, leading to an increase in revenue from investment banking and advisory services. The company expects private placement activities to continue to rise in the fourth quarter.
During the quarter SSI sold its shares in Long An Food Processing Export Joint Stock Company and reduced its stakes in Binh Thanh Import – Export Production and Trade Joint Stock Company and Transimex – Saigon Corporation.
A spokesperson said SSI has become the first company in the country to complete procedures to abolish the foreign ownership cap, which would bring more development opportunities.
SSI maintained its position as the top brokerage on both the HCM Exchange (HOSE) and Ha Noi Stock Exchange (HNX), with market shares of 13.45 per cent and 10.04 per cent.
The spokesperson said the company is on course to achieve its business targets this year.
