Many brokers saw impressive growth over the course of last year.
Nearly 80 securities companies have released their Q4 2014 financial reports, with 19 of the larger companies recording handsome profits. Despite the market being in something of a decline, total revenue of the 19 companies exceeded VND4 trillion ($190.47 million), an increase of 30 per cent against the same period of 2013.
The most impressive increase in Q4 belonged to Saigon Hanoi Securities (SHS), which recorded total revenue of VND399 billion ($19 million), with revenue from commissions and proprietary trading accounting for 66 per cent, an increase of 198 per cent compared with 2013. Profit-after-tax grew ten-fold, to VND122 billion ($5.8 billion), placing it first in terms of market share on the Hanoi Stock Exchange.
RongViet Securities (VDS) earned VND288 billion ($19.71 million) in revenue, 137 per cent higher year-on-year. Profit-after-tax was VND105 billion ($5 million), or 70 times higher than in 2013, with an earnings per share of VND3,008 ($0.14).
The company said the reason for the surge in profit was the improvement in market liquidity compared with the same period last year. Core activities such as investment banking, brokerage, and securities services grew strongly, and proprietary trading also brought in substantial profits.
The Ho Chi Minh City Securities Corporation (HSC) also had a good 2014. Its Q4 financial report showed revenue of VND831 billion ($39.5 million), 31 per cent higher than in 2013, and profit-after-tax rose 33 per cent, to VND376 billion ($17.94 trillion).
Likewise, VNDirect, IB, Bao Vietnam, and TanViet all saw revenue and profit increases of between 20 and 50 per cent due to huge revenues from commissions and proprietary trading activities.