Banks still counting profit from securities trading

August 29, 2024 | 19:06

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Despite market volatilities, many banks still count healthy profits from securities trading.

In the first half of this year, Military Bank (MB) raked in nearly $447 million in post-tax profit, up 5.28 per cent on-year.

Banks still counting profit from securities trading

Despite facing hardships in core business lines, the bank counted $58.8 million in profit from trading securities business, shooting by 8.85-fold compared to one year ago.

This came despite MB shedding up to 72 per cent of total investment value into trading securities in the period, falling to $512.8 million, in which most of the investment targets unlisted market, accounting for 91 per cent of the total investment value.

Conversely, by the end of June state lender BIDV led the banking system with $10.8 billion poured into trading and investment securities, showing a 14 per cent jump compared to the end of 2023, of which investment securities took a lion’s share reaching $10.5 billion.

In H1, the bank counted $518.7 million in post-tax profit, up 12 per cent on-year. Although profit in core business lines just expanded 3.26 per cent on-year, BIDV posted $10.2 million from trading securities business, up 37 per cent on-year.

The bank had scaled up investment into trading securities in H1, with a total investment value reaching $341 million.

Techcombank also reaped $522.7 million in post-tax profit in H1, soaring 39 per cent on-year, in which trading securities business generated $3.3 million, double compared to one year ago.

Southern lender ACB announced of posting $6.45 million in profit from trading securities business, up 35 per cent compared to the corresponding period in 2023.

During the period, the bank has mainly focused on debt securities issued by domestic credit institutions with a total investment value reaching $166.5 million currently that remains unchanged compared to the outset of this year. The bank’s total investment value into trading securities in H1, however, shed 14.6 per cent compared to early 2024, falling to $255.2 million as of June 30.

Elsewhere, Agribank also saw a 22 per cent jump in total investment value of trading and investment securities that touched $8.8 billion by the end of June, compared to $7.24 billion in late 2023.

Trading securities are assets that are bought and sold on the market to generate profits for the issuer, such as debt securities, equity securities and other securities that are bought and held within one year to gain profits from price differences. These assets are often bought and sold in the short term. Investment securities are assets held by a business for investment purposes, including equity securities (common stocks) and debt securities such as banknotes, bonds, and promissory notes. These assets are often held for a longer period of time. Businesses can hold them until maturity or indefinitely (for securities without maturity dates).

Trading securities are assets that are bought and sold on the market to generate profits for the issuer, such as debt securities, equity securities and other securities that are bought and held within one year to gain profits from price differences. These assets are often bought and sold in the short term.

Investment securities are assets held by a business for investment purposes, including equity securities (common stocks) and debt securities such as banknotes, bonds, and promissory notes. These assets are often held for a longer period of time. Businesses can hold them until maturity or indefinitely (for securities without maturity dates).

State-owned banks leading in forex trading revenues

The profits from foreign exchange trading at major banks are still consistently substantial, even in the face of significant exchange rate fluctuations.

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