SSI revenue slumps in Q2 but still up in first half

SSI saw high growth in the first half of the year despite a drop in second quarter. — VNA/VNS Photo

SSI Securities Corporation reported an after-tax profit of VND416 billion (US$17.7 million) on revenue of VND1.58 trillion ($67.3 million) in the second quarter of the year, a year-on-year decrease of 26 per cent and 8 per cent, respectively.

But thanks to good business results in Q1, the company’s after-tax profit and revenue in the first half increased by 11 per cent and 10.5 per cent over the same period last year to reach approximately VND1.1 trillion ($47.2 million) and VND3.59 trillion ($153 million), respectively.

Viet Nam's stock market plunged in the first half, with the VN-Index falling to 1,197.6 points at the end of June, equivalent to a price to earning (P/E) ratio of 13, or below the 10-year average of 15.

Market capitalisation tumbled by more than VND1.22 quadrillion ($52.1 billion), with the Ho Chi Minh Stock Exchange alone losing VND1.08 quadrillion.

Liquidity has also plummeted. The average daily trading value on HOSE in June was only VND13.18 trillion, the lowest in a year and down 57 per cent from the peak of nearly VND1 trillion in November 2021.

In that difficult context, SSI’s revenue from securities services in the quarter saw a slight decrease of 2.8 per cent compared to the same period last year to reach VND946 billion.

Its brokerage team always keeps a close eye on all developments to provide suitable advice to customers. Despite the market’s strong volatility, the total value of forced selling at SSI in the quarter was low, the company said.

In addition, through the implementation of a series of consulting programmes and providing investment knowledge and training for customers, the number of new accounts opened in Q2 at SSI increased by 50 per cent over the same period last year and 21 per cent over the preceding quarter.

Its other business activities, including its treasury business and investment banking, were stable.

SSI plans to issue new warrants in the second half of this year, when prices will be much lower than that at the beginning of the year to help investors increase profitability.

SSI on July 20 paid over VND990 billion worth of dividends in cash at a rate of 10 per cent.

It will complete the issuance of an additional 497 million shares this month to supplement working capital, consolidate its strong financial potential, improve competitiveness and continue to provide new products and services. — VNS