Vietnam securities firms see diverging profits in Q2

The top 10 securities companies on the Ho Chi Minh Stock Exchange (HoSE) experienced mixed earnings in Q2 amid the strong rebound of the benchmark VN-Index.

Vietnam’s stock market in early Q2 weathered global trade uncertainties, particularly the reciprocal tariff policy by U.S. President Donald Trump’s administration, which initially imposed a 46% tax on Vietnam.

This led to a 6.2% decline in the VN-Index on the HoSE in April. However, the index staged a strong recovery later in the quarter, rising 8.7% in May and 3.26% in June.

Techcom Securities (TCBS) topped the list in the quarter with an after-tax profit of VND1.42 trillion ($54.33 million), up 9.48% year-on-year. The firm benefited from growth across multiple business lines.

Specifically, brokerage revenue rose 28.83% to VND201.1 billion ($7.69 million), margin lending 32.43% to VND844 billion, and gains from FVTPL (fair value through profit or loss) assets 20.6% to VND841.1 billion.

Meanwhile, Saigon Securities Inc. (SSI) reported Q2 revenue of VND2.91 trillion ($111.35 million), up nearly 29.6% year-on-year. After expenses, net profit reached VND922.5 billion ($35.3 milion), an increase of 10.43%. Interest income from receivables and loans brought in VND830 billion, surging 62%.

VPS Securities saw Q2 operating revenue inch up 0.88% to over VND1.72 trillion ($65.8 million). Of which, lending and receivables reached VND529.8 billion, up 16.18% year-on-year but brokerage services earned VND748 billion, down 16.27%.

VPS had the largest brokerage revenue share among the HoSE's top 10, with brokerage accounting for 43.41% of total operating income, while lending and FVTPL contributed 30.75% and 15.06%, respectively.

Thanks to significant cost reductions, it posted an after-tax profit of VND702.2 billion ($26.87 million), marking the highest growth in Q2 among top 10 brokerage firms, with 34.52% year-on-year.

Other firms such as VNDirect (VNDS), MB Securities (MBS), and Mirae Asset Vietnam also saw profit increases in the quarter, though growth remained under 10%.

At the other end, Ho Chi Minh City Securities (HSC) reported Q2 after-tax profit of VND192.4 billion ($7.36 million), down 38.59% year-on-year - its lowest since Q4/2023 and the steepest drop among top-tier firms.

HSC explained that despite steady margin lending demand and improved brokerage market share (top 5 on the HoSE), a 5% decline in average market trading value negatively impacted brokerage revenue. In addition, a sharp market correction hurt proprietary trading results.

Similarly, Vietcap Securities (VCI) saw net profit fall 34% year-on-year and 38% quarter-on-quarter to VND184 billion ($7.04 million). It recorded VND645.5 billion ($24.74 million) in losses from selling FVTPL assets, 3.4 times higher year-on-year, resulting in a net loss of VND66 billion ($2.52 million) on proprietary trading, compared to a profit of VND261 billion in the same period last year.

KIS Vietnam and Vietcombank Securities (VCBS) also reported net profit declines of 20.96% and 27.11%, respectively, in Q2.

Optimism surrounds securities stocks

Entering the Q2 earnings season, securities stocks surged sharply despite profit divergences. Vietcap data shows the securities sector rose 25.34% in the past month - the strongest gain among all sectors.

Even firms with declining profits, such as VCI and HSC saw positive stock performance, with their tickers gaining 16.2% and 21.58%, respectively.

Experts attributed this to the high beta of securities stocks, meaning they often move in line with the VN-Index. With both index points and liquidity improving, investors expected securities firms to benefit from brokerage, proprietary trading, and margin lending activities.

Analysts further believed brokerage stocks will receive multiple tailwinds in H2/2025.

According to Saigo-Hanoi Securities (SHS), the financial services sector is supported by more attractive valuations and the potential for market upgrade.

Average trading value is projected to rise by 11-12%, which would boost earnings. Firms with strong foreign institutional client bases are expected to benefit the most from a market status upgrade.

A report from Vietcap suggested that with improved economic outlook, clearer trade policies, strong domestic activity, and anticipated trading volume growth in 2026, revenues from margin lending, proprietary trading, and investment banking are expected to recover significantly and translate into higher profits.

“Based on our analysis, the average ROE (return on equity) of leading securities firms bottomed out at around 10% in 2023 and has gradually improved over the last three quarters of 2024. In this new growth cycle, we expect securities firms to optimize capital and improve efficiency, driving ROE higher in 2026,” Vietcap noted.

SSI is also optimistic, citing improved liquidity and increased foreign capital inflows in H2/2025 and 2026. Key drivers include full operation of the KRX trading system with advanced features; potential FTSE Russell market status upgrade on October 7, 2025; and upcoming initial public offering (IPO) of TCBS, which could be a major re-rating catalyst for the entire sector.

The VN-Index closed Thursday at 1,521.02 points, up 8.71 points or 0.58% from the previous session.