Despite the economic downturn 2009 turned out to be a satisfactory year for securities companies.
Kim Long Securities Company (KLS), which now has shares listed on the Hanoi Stock Exchange, was the first company announcing business results for 2009. KLS’ turnover was 434.8 billion dong meaning a post tax profit of 352 billion dong and an EPS (Earning per share) at 5,088.99 dong.
As such, the profit it gained in 2009 was high enough to nearly cover losses of 347 billion dong in 2008.
Other securities companies have also reported satisfactory business results. VN Direct announced unaudited post tax profits of 210 billion dong for 2009. The company said the prosperous stock market helped it successfully fulfill the plan to increase the chartered capital from 300 billion dong to 450 billion dong.
VN Direct has revealed plans to list shares on the Hanoi Stock Exchange.
Like VN Direct, Thang Long Securities Company also plans to list shares in 2010. Thang Long has not announced its business result for 2009. However, it would not be a surprise if the company announces high profits, especially when it has been recognized by the watchdog agency as the securities company with the biggest brokerage share in the market in 2009
Thoi bao Kinh te Vietnam has quoted a source as saying that profits obtained by Tan Viet Securities Company are estimated at 90 billion dong.
Hoa Binh Securities Company, which listed itself among the group of securities companies with chartered capital of 300 billion dong and more, has reported a turnover of 80 billion dong in 2009 and post tax profits of 43 billion dong.
Of note is that in 2009, BIDV Securities Company (BSC) obtained impressively large profits of 400 billion dong after a hard year. BSC is planning to make an initial public offering (IPO), possibly in the first quarter of 2010.
In the south, Ban Viet Securities Company (VCSC) reported pretax profits of 64.6 billion dong, exceeding its yearly business plan by 322 percent.
By the end of 2009, VCSC had had nearly 6,000 investors’ accounts, listing itself among the top 20 securities companies with the biggest brokerage market share. It is now ranking 6th in terms of brokerage share for foreign investors.