Securities profits surge to historic highs, leaving some behind

Many securities firms reported record-breaking profits in Q2, buoyed by robust investor sentiment, higher trading volumes, and a surge of foreign inflows. The sector as a whole entered a new phase of growth, achieving its highest-ever quarterly earnings. However, the performance gap widened, with some firms significantly outperforming peers, while several major players failed to ride the market uptrend and posted weaker results.

According to a survey by VIR covering 37 publicly listed securities firms, the Q2 business results of these firms showed a clear contrast. The data encompassed all major players with significant market share and represent the industry's core dynamics.

Total profits for the 37 listed firms approximated $308 million in Q2, up 26 per cent on-year – marking the highest quarterly earnings ever recorded in the sector.

Among the standout performers were Techcom Securities (TCBS) and VIX Securities (VIX), both posting post-tax profits surpassing VND1 trillion ($40 million) mark in Q2.

TCBS maintained its lead as the most effective player in the sector, posting $56.8 million in Q2 net profit- its highest quarterly result to date. However, the biggest surprise came from VIX, which delivered an unprecedented Q2 profit at $52 million, even surpassing its full-year record profit of $38.6 million set in 2023.

Favourable market conditions significantly boosted all revenue segments for VIX, especially proprietary trading. Gains from financial assets recorded through profit or loss hit around $68 million, more than seven times the figure from the corresponding period last year.

Lending income also surged, driven by VIX’s aggressive expansion in margin lending. By the end of Q2, the company had $371 million in outstanding margin loans – up nearly $140 million in just six months.

Thanks to robust gains from both proprietary trading and margin lending, VIX saw the highest quarterly profit in its history –10 times higher than last year's second quarter. This allowed it to surpass major player SSI Securities Corporation (SSI), climbing to second place in the industry by profit. SSI’s parent company earned close to $37 million for Q2.

The top three – TCBS, VIX, and SSI – raked in $144 million in profits, accounting for 47 per cent of total profits among the 37 surveyed firms. While VIX delivered the biggest earnings spike, LPBank Securities (LPBS) recorded the largest on-year growth. The company’s Q2 profit reached $8.2 million, 15 times higher than in 2024. Like VIX, LPBS’s growth was largely driven by proprietary trading, with its Q2 figure marked the company’s highest-ever quarterly profit.

Meanwhile, VietinBank Securities JSC (CTS), also reported a strong performance, with post-tax profit reaching $7 million, up over 740 per cent on-year. While not its highest-ever quarterly result, it was the best CTS has recorded in over three years. Other firms that posted record quarterly profits in Q2 included VPBank Securities, ACB Securities, and HD Securities.

Despite the strong industry-wide performance, some firms, however, reported disappointing results, with familiar names posting declining profits or even losses. Several of these companies are among the market's top players by share, including BIDV Securities, Ho Chi Minh City Securities Corporation (HSC), FPT Securities, and Viet Capital Securities (or VCI), to name but a few.

HSC and VCI, both in the Top 5 by market share on Ho Chi Minh Stock Exchange in Q2, saw profits decline by over 30 per cent. Accordingly, HSC’s operational performance was roughly flat on-year, with Q2 operating revenue at around $43 million, down by about $800,000.

Its operating costs, however, rose by 22 per cent, mainly due to higher provisioning for financial assets, bad debt write-offs, and increased borrowing costs related to lending operations. As a result, HSC’s Q2 post-tax profit dropped to $1.9 million, down 38 per cent on-year. Cumulatively, the company’s H1 profit totalled $4.1 million, down 28 per cent.

VCI's revenue surged by 26 per cent in Q2. However, during the period, the company reported a proprietary trading loss of approximately $520,000, leading to a 34 per cent drop in post-tax profit, which stood at $7.36 million. As a result, both VCI and HSC dropped out of the top 10 most profitable securities firms.

Elsewhere, the market also saw several other firms slip into the red during the quarter, including Tien Phong Securities, EVS Securities, and SBS Securities. Most of the profit declines were linked to sluggish market liquidity in the first half of the year and a sharp market correction in early April when the US administration first announced on applying reciprocal tariffs on its trading partners. Nevertheless, Q2 marked the beginning of a new profit cycle for the securities sector as a whole.

Expectations for the sector remain high heading into Q3, especially after the VN-Index reached new historic highs in July, with daily market liquidity consistently surpassing VND30–40 trillion ($1.2–$1.6 billion mark per session.

July also marked the most active month for foreign capital inflows since the outset of the year, with net purchases from foreign investors reaching the highest level since early 2023.

In total, foreign investors recorded net-buying volume of $340 million across the market in July- a strong signal of renewed international interest in Vietnam’s equity markets.

According to analysts, the return of foreign capital – especially from institutional investors – has been fuelled by growing optimism over a potential market status reclassification from ‘frontier’ to ‘emerging’ status.

Coupled with improving macroeconomic conditions, this trend has been a key driver behind the market’s recent record-setting performance.