Securities companies flock to gain market share

Wednesday, Apr 05, 2023 11:53

VPBank Securities office in Ha Noi. In 2023, VPBank Securities JSC plans to achieve revenue 3.2 times higher than in 2022 of VND2.5 trillion. — Photo VPBank Securities JSC

Securities companies are trying to gain market share, reflected in business targets for 2023.

In 2023, VPBank Securities JSC plans to achieve revenue of VND2.5 trillion, 3.2 times higher than in 2022, profit before tax is expected to nearly triple compared to last year, reaching VND1.61 trillion. Notably, bond trading and other activities earned VND1.16 trillion, an increase of 150 per cent, and bond issuance consulting achieved a revenue of nearly VND24 billion.

2022 is a difficult year for most securities companies, but VPBank Securities was an exception. This securities company recorded a revenue of VND776 billion, profit after tax reached VND443 billion, 72 times higher than in 2021. Of which, revenue from bond trading and other activities brought in VND467 billion.

In 2022, VPBank pumped more than VND15 trillion to increase the capital of VPBank Securities with two share offerings, making VPBank the securities company with the largest charter capital in the market. With abundant financial resources from the parent bank, in 2022, the transaction value of investors through this securities company reached more than VND61 trillion, 40 times higher than the same period in 2021, of which the trading value of shares accounted for more than VND36 trillion, the rest was bond trading with a total value of more than VND25 trillion.

This securities company also informed its customers that it would buy all overdue bond contracts of real estate company Novaland. For bond contracts that have been renewed, not yet matured and customers need to liquidate before maturity, liquidation is allowed at the interest rate of the bond contract being held. Transactions should be made before April 6, 2023.

At this year's Annual General Meeting of Shareholders, Chairman of SSI Securities Inc (SSI) Nguyen Duy Hung said that SSI must regain its position as the largest broker in the stock market. In terms of structure, each SSI transaction office is organised as a miniature company with different customer care policies. Policies such as leaving money overnight to enjoy higher interest rates without term, and weekly and monthly interest calculations, are also offered by SSI to convince investors to keep money in their accounts instead of transferring it to banks.

Recently, SSI launched a loan package of VND5 trillion, unlimited margin loans, interest rates from 9 per cent, and no maturity in 6 months, to attract investors.

However, regaining market share and the position achieved in the past is not simple as other securities companies are eager to participate in this fierce race. In the new Annual General Meeting of Shareholders, BSC Securities also decided to return to the top 10 HOSE brokers list. Previously, BSC had time to enter the rankings but was eliminated from the list due to competition from other players.

Regarding the business plan for 2023, BIDV Securities Co (BSC) also has an ambitious plan with pre-tax profit of VND565 billion, nearly 3.8 times higher than that of 2022.

Talking about the stock brokerage market share race, Nguyen Diep Tung, General Director of FPTS Securities Co, said that the market share competition would become more and more fierce in the context that the market was plummeting in both scores and liquidity. The number of securities companies remained the same. Some small securities companies would participate in the competition for market share by cutting trading fees.

“FPTS will not cut trading fees because, in the long run, it is impossible for any company to operate without profit. They will not be able to maintain a large technology system with many utilities; unable to develop new products and services for investors to keep up with the development of the market. Therefore, all major securities companies cannot participate in the zero-fee race, but must compete with better quality products and services," he said.

"With a financial market with a lot of potential like Viet Nam, securities companies who want to go a long way must choose the path of building a new technology system with many utilities to serve the transactions of more investors, building a team of consultants; improve consulting and service quality," he said. VNS

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