Major broker SHS sees 2024 pre-tax profit exceeding target by 20%

Saigon-Hanoi Securities Corporation (SHS) reported a consolidated pre-tax profit of nearly VND1.24 trillion ($49.42 million) in 2024, surpassing the year's target by 20%, and 1.8 times higher than the 2023 figure.

2024 was a turbulent year for the Vietnamese stock market. While some securities firms saw positive growth, others recorded a decline in profit.

In this context, SHS surpassing the year's target by 19% and becoming the sixth most profitable securities firm in Vietnam reflected its determination to pursue the vision of becoming a leading financial investment group and ensuring long-term benefits for its shareholders.

In addition, SHS's profit structure remains similar to that of other securities companies, with a stronger shift towards financial services. While proprietary trading continues to contribute significantly to overall profits, most of it comes from fixed-interest products and financial services.

The shift from pure proprietary trading to financial services has become a major trend in Vietnam's stock market, as profit stability is seen as part of professionalization in developed markets.

Transitioning to professional asset management services

In 2024, SHS focused on enhancing business efficiency across all areas, from securities brokerage and corporate financial advisory to investment portfolio management, with a sustainable development strategy centered on increasing clients' net assets.

Recently, it also rebranded with the mission of “Creating Prosperous Finance,” aligning with its new strategic direction.

In the brokerage segment, to better serve customers and face competition over fees, SHS has developed processes to improve service quality, optimize the customer journey, and gradually shift from traditional brokerage and fee-based services to investment and wealth management consulting, and low-cost online brokerage services.

As part of a complete ecosystem of banking, insurance, securities, and fund management, SHS is well-positioned to succeed in transforming from a traditional securities brokerage to a modern securities services company offering professional asset management products and premium customer services, as well as services for younger clients through fully automated systems.

At the same time, the firm has been expanding its investment advisory team, recruiting experienced professionals from top domestic and international securities firms and investment funds.

SHS believes that investment advisory is a field where technology cannot fully replace humans but can serve as an additional tool to better make advisory services. Therefore, skilled personnel and appropriate training programs will be a key competitive advantage for the securities firm.

Last year, SHS also launched numerous upgrades to its intelligent investment platform, SHTrading, for individual investors; introduced the new Margin T+ product; and put the new sBoard pricing system into operation.

SHS is in the process of increasing its charter capital to VND17 trillion ($677.56 million), following regulatory procedures. Once approved by the State Securities Commission, its board of directors will identify optimal timing for a share issuance. This move is part of SHS's development strategy.

After such a capital hike, the company will continue to be among the leading securities companies in terms of charter capital, one of the essential conditions for gradually realizing its asset management model and enhancing its traditional business segments.

The brokerage segment is gradually shifting towards asset management services and corporate financial advisory, which will become the core foundation of the company.

In addition to its strong financial results, SHS received a series of important awards and achievements in 2024. Notably, it was honored with the prestigious “Top 10 Best Corporate Governance Enterprises in the Large-Cap Group” award at the 17th Vietnam Listed Company Awards (VLCA) thanks to applying advanced governance practices. The firm also won double awards: Best Workplace in Asia and Most Caring Company by HR Asia.

Beyond its business growth objectives, SHS also places great importance on its social responsibility. Through the Vietnam Fatherland Front Central Committee, SHS, T&T Group, Saigon-Hanoi Bank, and other enterprises in the ecosystem donated VND20 billion ($785,856) to help localities quickly recover from the aftermath of storms and floods, stabilizing the lives of affected people.

With its mission of “Creating Prosperous Finance,” SHS continues to implement breakthrough initiatives and improvements to bring real financial values to its clients and partners. It is actively contributing to the development of the economy, building a prosperous community, and helping Vietnam reach new heights on the global financial map.

SHS, listed on the Hanoi Stock Exchange as SHS, closed Wednesday at VND12,400 ($0.49) per share.