Large-cap brokerages post strong Q1 earnings despite sector challenges

Large-cap brokerages post strong Q1 earnings despite sector challenges

According to recently released Q1 financial reports, well-capitalised firms maintained strong momentum thanks to cost management and diversified income sources.

MB Securities (MBS) posted VNĐ269 billion ($10.5 million) in after-tax profit, up 47 per cent year-on-year. — Photo courtesy of MBS

Việt Nam’s securities sector painted a mixed picture in the first quarter of 2025, with smaller firms facing declining profits or losses, while large-cap brokerages stood out with strong earnings growth and stable performances.

According to recently released Q1 financial reports, well-capitalised firms maintained strong momentum thanks to cost management and diversified income sources.

SSI Securities, the largest brokerage in Việt Nam by charter capital and market value, posted VNĐ2.1 trillion (US$82 million) in operating revenue, up nearly 10 per cent year-on-year. After-tax profit came in at VNĐ819 billion, up 13 per cent.

VPBank Securities (VPBS) posted a Q1 pre-tax profit of VNĐ350.6 billion, up 92 per cent year-on-year, driven by strong gains from financial assets at fair value through profit or loss (FVTPL) of VNĐ460 billion and a 20 per cent rise in operating revenue.

MB Securities (MBS) posted VNĐ269 billion in after-tax profit, up 47 per cent year-on-year. 

Techcom Securities (TCBS) achieved over VNĐ1 trillion in after-tax profit, up 9 per cent year-on-year, thanks to a 20 per cent rise in operating revenue. Growth was driven by margin lending and underwriting services.

Kafi Securities reported a 175 per cent surge in post-tax profit in Q1, reaching nearly VNĐ73 billion. The company’s strong earnings growth was driven by a sharp rise in revenue, which jumped almost 170 per cent year-on-year to nearly VNĐ380 billion.

VIX Securities reported a sharp revenue surge, reaching nearly VNĐ980 billion in Q1, 2.7 times higher than the same period last year. After-tax profit rose to VNĐ372.3 billion, up 130 per cent year-on-year.

A common trait among the top-performing firms is large capital bases and close ties with banks. Players like VPBS, Kafi and TCBS have actively increased charter capital, strengthening their balance sheets amid market volatility.

On the other end of the spectrum, a number of brokerage houses experienced a decline in profits, largely due to reduced brokerage revenue and rising interest costs on margin lending.

CV Securities was the first to report a loss, with a Q1 after-tax loss of VNĐ6.3 billion ($246,000). Meanwhile, APEC Securities reported the steepest loss in the sector in Q1, with a loss of VNĐ31 billion compared to a profit of VNĐ9 billion in the same period last year.

Several firms saw profits decline due to weaker proprietary trading performance, such as Hồ Chí Minh Securities (HCM), Sài Gòn-Hà Nội Securities (SHS) and BIDV Securities (BSI), or due to higher provisioning expenses, such as DNSE Securities (DSE). 

Bizhub