Brokerage revenue falls at most securities companies amid market contraction

Brokerage revenue fell at most securities companies amid the general market contraction as the total trading size of the whole market shrank.

Brokerage revenue falls at most securities companies amid market contraction hinh anh 1

A man looks at stock indices on a computer screen (Photo: VNA)

Brokerage revenue fell at most securities companies amid the general market contraction as the total trading size of the whole market shrank.

Statistics from HoSE showed that 10 securities companies with the largest brokerage value on HoSE in the fourth quarter of 2022 include VPS Securities JSC (VPS), SSI Securities Inc (SSI), VNDirect Securities Co (VNDirect), Mirae Asset Securities (MAS), Ho Chi Minh City Securities Corporation (HSC), Vietcombank Securities Co (VCSC), MB Securities Co (MBS), Techcombank Securities Co (TCBS), KIS Vietnam Securities Corporation (KIS), and Viet Dragon Securities Co (VDSC).

VPS Securities JSC (VPS) continued to maintain the No 1 position in terms of stock brokerage market share with 14.81% in the last quarter of 2022. That was the 8th consecutive quarter VPS reached the No 1 market share position on the HCM Stock Exchange (HoSE), although this figure was nearly 4 percentage points lower than 18.71% in the third quarter of 2022.

On the Hanoi Stock Exchange (HNX), VPS securities also hold the leading position in 2022 with a market share of more than 21%.

While other companies listed in the top 10 stockbrokers on the HNX improved their market share insignificantly, or even witnessed a shrinking market share, VPS's market share increased by nearly 5 percentage points from 16.34% in 2021.

Securities companies such as SSI Securities Inc (SSI) and VNDirect Securities Co (VND) also improved their market share on the HNX in 2021, increasing by 0.14 and 0.12 percentage points, respectively.

Missing out of the Top 10 on HNX were 2 companies HCM City Securities Corporation (HSC) and Saigon-Hanoi Securities Co (SHS), replaced by 2 companies KB Securities Vietnam JSC (KBS) and Vietcombank Securities Co (VCSC) with market shares of 3.12% and 2.76%, respectively.

Brokerage revenue fell at most securities companies amid the general market contraction. For example, VPS became the No 1 securities company in terms of market share on HoSE, but its market share in the fourth quarter of 2022 decreased sharply. In the whole of 2022, VPS Securities Joint Stock Company - the leading company in terms of stock brokerage market share - only collected 550 billion VND in revenue from brokerage activities, equal to half of the same period of 2021.

For the whole of 2022, brokerage revenue of the 10 leading securities companies on HoSE in terms of trading market share decreased by nearly 19.4% compared to the previous year. VPS's brokerage gross profit margin decreased from 22% in the fourth quarter of 2021 to 12% in the fourth quarter of 2022.

Keeping market share when the total trading size of the whole market shrinks, many securities companies trade off efficiency. The ratio of gross profit to revenue of the brokerage segment has decreased significantly.

In the top 10 enterprises leading the market share, brokerage revenue decreased by less than 20%, but gross profit of this segment decreased by 28.2%./.

Source: VNA
en.vietnamplus.vn

Related News

Import and export turnover across Quang Tri Customs increases by 31.39%

Import and export turnover across Quang Tri Customs increases by 31.39%

VCN - As of November 15, the import-export turnover across border gates in the area saw a year-on-year increase of 31.39% to US$940.73 million, Quang Tri Customs Department said.
Hai Phong Customs achieves revenue target soon

Hai Phong Customs achieves revenue target soon

VCN – As of Hai Phong Customs Department has gained the revenue target for the whole year of 2024.
Quang Nam Customs facilitates trade and increases revenue

Quang Nam Customs facilitates trade and increases revenue

VCN – Goods imported and exported across Quang Nam province’s border gates surges in the second half of the year. Quang Nam Customs Department has implemented solutions to facilitate enterprises, increasing the State revenue.
Striving for revenue to rise by over 15% compared to assigned estimate

Striving for revenue to rise by over 15% compared to assigned estimate

VCN – At meeting on summarizing in financial budget October and deploying work program in November held by the Ministry of Finance on November 11, Deputy Minister of Finance Cao Anh Tuan requested to speed ​​up review budget work and quickly remove financial institutional bottlenecks.

Latest News

M&A in Vietnam expected to be bustling in 2025

M&A in Vietnam expected to be bustling in 2025

Merger and acquisition (M&A) activity in Vietnam is expected to be bustling again, thanks to the domestic economic recovery and higher foreign investment.
Major reforms in the management of state capital in enterprises

Major reforms in the management of state capital in enterprises

VCN - The draft Law on Management and Investment of State Capital in Enterprises is set to be presented and discussed at the National Assembly, featuring numerous new provisions after multiple rounds of public consultation. The draft law is expected to bring significant reforms to the operational framework for managing state capital and state-owned enterprises (SOEs).
Vietnam makes comprehensive strides in public financial management reform

Vietnam makes comprehensive strides in public financial management reform

VCN - Vietnam has achieved significant milestones in its public financial management (PFM) reforms, earning praise for its comprehensive progress across multiple areas, according to the latest Public Expenditure and Financial Accountability (PEFA) Report.
Central bank increases credit growth limit for banks for second time this year

Central bank increases credit growth limit for banks for second time this year

The State Bank of Vietnam (SBV) on November 28 announced it would increase credit growth target for credit institutions, for the second time this year.

More News

Decree on the implementation of global minimum tax: Ensuring a clear and transparent legal framework

Decree on the implementation of global minimum tax: Ensuring a clear and transparent legal framework

VCN - The decree detailing the implementation of the global minimum tax must align with practical management requirements, ensuring a clear and transparent legal framework that enables businesses to comply with new tax regulations while safeguarding national interests, emphasized Dang Ngoc Minh, Deputy Director General of the General Department of Taxation.
Agree to continue reducing VAT by 2%

Agree to continue reducing VAT by 2%

VCN - National Assembly deputies all expressed their agreement with the policy of continuing reducing value-added tax (VAT) by 2% in the first half of 2025, but there needs to be an effective support policy for sustainable development of businesses.
Four challenges that put pressure on monetary policy management

Four challenges that put pressure on monetary policy management

VCN - According to the State Bank of Vietnam (SBV), monetary policy in the coming time will face many pressures, including the impacts of the international context and the continued implementation of the policy of reducing interest rates.
Legal basis to improve quality of price appraisal

Legal basis to improve quality of price appraisal

VCN - According to the representative of the Price Management Department, the regulations related to the activities of appraisers, adjusting the conditions for valuation practicing are new contents of the 2023 Price Law, contributing to improving the quality of valuation activities.
Amending the Law on Corporate Income Tax, not giving preferential treatment to overlapping and spreading industries

Amending the Law on Corporate Income Tax, not giving preferential treatment to overlapping and spreading industries

VCN - The promulgation of the Law on Corporate Income Tax (amended) is necessary, in line with international practice, associated with restructuring revenue sources, expanding the tax base in line with the context of socio-economic development.
Việt Nam

Việt Nam's stock market recovers but outlook remains uncertain

Following a prolonged period of volatility, the VN-Index is approaching a critical resistance level, raising the question of whether the market has enough momentum to break through or if it is merely undergoing a technical rebound before further corrections.
Bad debt at banks continues to rise in both amount and ratio

Bad debt at banks continues to rise in both amount and ratio

VCN - After nine months of 2024, bad debt balances at banks continue to rise, potentially posing risks to the banking sector if control measures aren't implemented.
Monetary policy forecast unlikely to loosen further

Monetary policy forecast unlikely to loosen further

It will be difficult for the State Bank of Vietnam (SBV) to further loosen monetary policy due to a rising USD/VNĐ exchange rate pressure, experts said.
Green credit proportion remains low due to lack of specific evaluation criteria

Green credit proportion remains low due to lack of specific evaluation criteria

VCN - According to the State Bank of Vietnam (SBV), as of the end of September 2024, 50 credit institutions had outstanding green credit balances exceeding VND 665 trillion, accounting for over 4.5% of the total outstanding loans in the economy.
Read More

Your care

Latest Most read
M&A in Vietnam expected to be bustling in 2025

M&A in Vietnam expected to be bustling in 2025

Merger and acquisition (M&A) activity in Vietnam is expected to be bustling again, thanks to the domestic economic recovery and higher foreign investment.
Major reforms in the management of state capital in enterprises

Major reforms in the management of state capital in enterprises

The draft Law on Management and Investment of State Capital in Enterprises is set to be presented and discussed at the National Assembly, featuring numerous new provisions
Vietnam makes comprehensive strides in public financial management reform

Vietnam makes comprehensive strides in public financial management reform

Vietnam has achieved significant milestones in its public financial management (PFM) reforms, earning praise for its comprehensive progress across multiple areas
Central bank increases credit growth limit for banks for second time this year

Central bank increases credit growth limit for banks for second time this year

The State Bank of Vietnam (SBV) on November 28 announced it would increase credit growth target for credit institutions, for the second time this year.
Decree on the implementation of global minimum tax: Ensuring a clear and transparent legal framework

Decree on the implementation of global minimum tax: Ensuring a clear and transparent legal framework

The decree detailing the implementation of the global minimum tax must align with practical management requirements, ensuring a clear and transparent legal framework
Mobile Version