Many Vietnamese brokerages report sharp decline in Q2 profit

Several Vietnamese securities firms reported steep declines in second-quarter earnings as weaker market liquidity and a narrow rally driven by a handful of large-cap stocks weighed on proprietary trading and brokerage businesses.

Vietnam's benchmark VN-Index rose more than 185 points, or over 11%, during Q2, climbing from nearly 1,675 points at the end of March to around 1,860 points by the end of June. For the first six months of the year, the index gained more than 75 points, or 4.23%, compared with the end of 2025.

The market's advance, however, was largely fueled by stocks linked to the Vingroup ecosystem. Shares of VIC (Vingroup) surged 63%, while VHM (Vinhomes) gained 53%, VRE (Vincom Retail) rose 14.6%, and VPL (Vinpearl) added 7.7%. Those gains accounted for a significant share of the VN-Index's increase, while most other sectors remained mixed, with many stocks trading sideways or declining.

Meanwhile, market liquidity weakened considerably. Total trading value on the Ho Chi Minh Stock Exchange (HoSE) reached about VND1,377 trillion ($52.37 billion) in Q2, down roughly 24% from nearly VND1,802 trillion in Q1.

The combination of a narrowly led market rally and lower trading activity hurt brokerage commissions and proprietary trading income across the industry.

Data compiled by The Investor showed that, so far, eight securities firms have reported either sharp year-on-year declines in Q2 net profit or losses.

Among them, VIX Securities (HoSE: VIX) posted one of the steepest declines. The company reported Q2 net profit of VND75.8 billion ($2.88 million), down 94% from over VND1.3 trillion a year earlier.

Net profit for H1 fell 87% to VND214.2 billion ($8.15 million) from VND1.67 trillion in the same period of 2025.

The sharp drop marked a significant reversal for VIX, which had previously ranked among the industry's top earners on the back of strong proprietary trading performance.

VietinBank Securities (HoSE: CTS) also reported a 91% decline in Q2 profit, while H1 earnings fell 71% from a year earlier.

Phu Hung Securities (UPCoM: PHS) posted declines of 40% and 58% in Q2 and H1 profit, respectively. Pinetree Securities (UPCoM: HFT) reported smaller declines, with Q2 earnings down 15% and H1 profit falling 17.5%.

Among smaller brokerages, several swung into losses. ASAM Securities reported a Q2 loss of VND5.63 billion ($214,110), compared with a profit of VND3.7 billion a year earlier. For the first six months, the company posted a loss of VND11.9 billion ($452,560), reversing from a VND3.04 billion profit in the same period last year.

Japan Securities Inc. (JSI) also moved into losses in both Q2 and H1, although the amounts were relatively small. Dai Viet Securities remained loss-making.

EuroCapital Securities (ECC) likewise stayed in the red. Its H1 loss widened to VND1.61 billion ($61,230) from VND180 million a year earlier, while the company swung to a Q2 loss of VND940 million ($35,750) from a profit of VND200 million in the same period of 2025.

Some firms reported mixed earnings trends. UP Securities posted a 78% decline in Q2 profit, but H1 net profit rose 138% from a year earlier, reflecting exceptionally strong earnings in Q1.

Shinhan Vietnam Securities reported a modest 5% increase in Q2 profit, although H1 earnings still declined about 4.6%.

Proprietary trading weakens, brokerage business under pressure

VIX Securities said market volatility in Q2 reduced gains from financial assets measured at fair value through profit or loss (FVTPL) by VND769 billion from a year earlier, while FVTPL losses increased by VND865.7 billion ($32.92 million).

The company said the deterioration mainly reflected unrealized fair-value adjustments to its investment portfolio at the end of the quarter rather than realized losses.

VIX nevertheless realized nearly VND140 billion ($5.32 million) in proprietary trading income during the quarter, although that was still 55.3% lower than a year earlier.

VietinBank Securities also reported an unrealized loss of VND55.8 billion ($2.12 million) on its proprietary trading portfolio during Q2, making it one of the main factors behind the decline in earnings.

Brokerage revenue at the company fell nearly 30.2% year on year to almost VND28.7 billion ($1.09 million). Rising borrowing costs also pushed financial expenses up 80% from a year earlier to VND158 billion (over $6 million).

Among smaller firms, sharp declines in brokerage revenue were a key driver of weaker earnings. Brokerage income fell 85% at ASAM Securities, 26% at Japan Securities, and 99% at EuroCapital Securities.

At UP Securities, in addition to weaker proprietary trading, the company reported no investment advisory revenue during Q2, compared with VND13.2 billion ($502,000) in the same period last year.

Pinetree Securities stood out by increasing Q2 operating revenue 20% year on year, although profit still declined because of higher financing costs. The company attributed the increase in costs to elevated bank lending rates.

Dai Viet Securities also reported a more than 22% increase in Q2 revenue, supported by stronger brokerage and margin lending activities. However, higher operating expenses, administrative costs and larger unrealized losses on financial assets resulted in a Q2 net loss of nearly VND5.5 billion ($209,170).