VNStockNews.com - Local experts have cast a downbeat outlook on business results of securities firms, saying that they will find it hard to realize 2010 profit targets given dull trading and dwindling cash flow onto the market in the first half of this year.
Saigon Securities Inc. (SSI), one of largest brokers in Vietnam, obtained revenues of VND423 billion in the first half, or 35.3% of this year’s target, with the second quarter alone contributing VND380 billion, up 91% year on year. However, SSI reported an after-tax profit of only VND153 billion, a 25.4% year-on-year decrease, due to provisions for risks and investment losses.
Sacombank Securities Co. also gained VND109 billion in the second quarter and VND148 billion in the first six months, or just 41% of the target.
However, the lower-than-expected figures are still higher than those of other securities companies.
In the second quarter, Bao Viet Securities Co. obtained VND73 billion in revenue but just VND1.9 billion in after-tax profit due to high business costs. As a result, the broker obtained only VND11.5 billion in after-tax profits in the first half, or 6.6% of this year’s target.
Meanwhile, other enterprises even reported losses, including Kim Long Securities Co. that incurred losses of VND22.3 billion in the second quarter and VND9.1 billion in the first half. Vietnam Bank for Industry and Trade Securities Co. also reported loss of VND6 billion in the second quarter.
A stock expert said the brokers would not see strong increases in revenue in the rest of this year as the market was predicted to move flat or increase slightly.
