DNSE margin lending and advance receivables up nearly 40% year-on-year

Brokerage DNSE Securities JSC reported operating revenue of more than VND395 billion ($15 million) in the first quarter of 2026, up 62% from a year earlier, driven by strong growth in margin lending and advances on securities sales.

Outstanding margin loans and advances rose 38% year-on-year to VND5.91 trillion ($224.43 million), the company said in its quarterly financial statements.

Pre-tax profit reached nearly VND14.2 billion ($539,260), while net profit stood at about VND11.3 billion ($429,130), reflecting an expansion in business scale despite a sharp stock market correction following a period of rapid gains and still-subdued liquidity.

Interest income from lending and receivables remained the main revenue driver, rising more than 42% year-on-year to VND147.5 billion ($5.6 million). Brokerage revenue surged 144% to VND119.5 billion ($4.54 million), underscoring continued market share expansion.

Meanwhile, income from held-to-maturity investments increased by about 40% to VND98.4 billion (VND3.74 million), providing a stable contribution.

Operating expenses totaled VND299 billion ($11.35 million), up 120% from a year earlier. Brokerage-related costs climbed 125% to VND137.8 billion ($5.23 million), in line with higher trading volumes and expanded operations.

Provisions for proprietary trading rose 405% to VND17 billion ($645,590), reflecting short-term market volatility affecting the firm’s trading portfolio.

Total assets stood at VND15.56 trillion ($590.87 million) at the end of the first quarter, up 3% from the start of the year.

Overall, DNSE maintained growth in core segments such as brokerage and lending. However, valuation swings in its investment portfolio, along with higher funding and provisioning costs, weighed on short-term profitability.

Derivatives market share strengthens, active users jump 41%

Alongside revenue growth, DNSE continued to gain market share, particularly in derivatives. Data from the Hanoi Stock Exchange showed the firm’s derivatives brokerage market share reached 25.5% in the first quarter, retaining its No. 2 position and narrowing the gap with the market leader to around 8 percentage points.

This marked the ninth consecutive quarter of market share gains in derivatives, highlighting the effectiveness of its technology- and user experience-driven strategy.

DNSE currently manages 1.65 million client accounts. It opened 142,000 new accounts in the first quarter, accounting for 18% of newly opened securities accounts in the market. The number of active users rose 41% year-on-year.

Chairman Nguyen Hoang Giang said at the company’s 2026 annual general meeting that derivatives market share is a clear gauge of technological capability and product effectiveness, noting DNSE had climbed to a top-two position within a few years from near zero.

Building on that, the firm aims to leverage its technology advantage to gradually shift clients from derivatives to the underlying market, expanding its share in cash equities.

For 2026, DNSE targets total revenue of nearly VND1.74 trillion ($65.93 million) and pre-tax profit of VND550 billion ($20.89 million), representing growth of about 18% and more than 60%, respectively, from the previous year.

To achieve this, the company plans to expand margin lending, boost brokerage activity, and develop tech-enabled trading products using APIs and artificial intelligence, catering to increasingly fast and flexible trading demand.

Most recently, DNSE launched a strategy backtesting tool that allows investors to build and validate strategies using up to 10 years of market data. The product integrates multiple data layers, including technical indicators, capital flows, and corporate financial metrics, to optimize strategies and filter out noise.

The entire testing process is automated and requires no programming knowledge, helping investors significantly reduce trial time and improve decision-making accuracy.

Technology-driven products tailored to next-generation investors are expected to help DNSE capture a growing base of active traders and support further market share expansion.