In the context of a credit slowdown and net interest margin reduction, banks have been gradually shifting their traditional business model away from lending to financial service provision, in order to improve profits.
Statistics indicate that outstanding margin loans at securities companies are projected to increase by VNĐ23 trillion (US$903.7 million) compared to the end of 2023.
Leading securities companies, including SSI Securities Corporation, are actively participating in this race by offering enticing promotions. SSI Securities Corporation provides a refund of up to VNĐ50 million in margin interest to investors.
In a recent report on the banking industry, VNDirect Securities Company said the average NIM ratio of 25 listed banks in the third quarter of 2023 was 3.32 per cent, a decrease of 0.47 per cent over the same period...
It is expected that at least five securities companies will raise their charter capital in the near future, with a total value of approximately VNĐ13.4 trillion (US$553 million).
The recent flourish of the stock market is pushing demand for margin loans, thus securities companies are preparing capital increases to meet the borrowing demand of investors.
The Ho Chi Minh Stock Exchange issued a notice on allowing shares of the Vietnam Maritime Commercial Joint Stock Bank (HSX: MSB) for margin trading from Thursday.
Concerns have been raised about tightened margin lending policies by securities firms, but low interest rates and strong buying power from domestic investors may help offset those worries.
Strong margin lending by securities firms is considered among key factors for the market surge in the past quarter and counter the strong foreign selling pressure.