Securities firms post diverging results as margin lending boosts some

According to FiinTrade's preliminary data, as of July 19, nearly 100 companies, representing 13.8 per cent of the market's total capitalisation, had announced their second-quarter (Q2) 2026 results. Combined net profit after tax of these companies rose 17.5 per cent on-year.

Brokerage firms are typically among the first groups of companies to report quarterly earnings. The industry's profit picture has gradually become clearer as most of the market's leading firms have published their financial statements.

This year's Q2 highlighted an increasingly pronounced divergence, with the largest securities firms continued to reinforce their market positions as both revenue and profit maintained strong growth.

Among the industry's top market-share leaders, the trio of Techcom Securities JSC (TCBS), VPS Securities JSC, and SSI Securities Corporation all posted double-digit earnings growth, with each reporting more than $40 million in quarterly profit.

TCBS reported Q2 pre-tax profit of $83.88 million, the highest quarterly figure in its operating history, up 21 per cent from a year earlier.

In the first six months of 2026, its cumulative pre-tax profit reached $142.20 million, fulfilling 47 per cent of its full-year profit target and remaining in line with its 2026 business plan.

The company said margin lending and cash advance services continued to serve as its primary growth engine, generating net income of $55.20 million, up 66 per cent on-year and accounting for 42 per cent of total net income.

At SSI, higher interest income from lending and receivables also drove earnings growth. This business segment generated more than $43.6 million in Q2 alone, an increase of more than 31 per cent.

The company’s net profit after tax attributable to SSI's parent company reached $60.4 million, up more than 32 per cent.

VPS followed closely behind SSI, reporting second-quarter pre-tax profit of $55.1 million, representing 57 per cent on-year growth.

Beyond these familiar industry giants, the market was surprised when VPBank Securities JSC (VPBankS), a brokerage with a smaller market share, rapidly climbed to the top and overtook TCBS as the industry's most profitable firm.

The brokerage, part of the VPBank banking ecosystem, recorded an exceptional profit surge, with Q2 earnings reaching $86.3 million, up 293 per cent from the same period last year.

According to the company, total revenue nearly quadrupled on-year, driven by strong performance across its core business segments.

Margin lending generated $76.1 million, nearly three times higher than a year earlier.

Meanwhile, proprietary trading capitalised on favourable market conditions to deliver $138.4 million, almost doubling its Q2/2025 result. Other businesses, including brokerage and investment banking, also recorded solid growth.

VPBankS was not the only standout performer. The second quarter also saw a number of brokerage firms backed by banking ecosystems significantly outperform the market, posting robust earnings growth and reshaping the industry's overall profit landscape.

One notable example was HD Securities Corporation (HDS), whose pre-tax profit surged to $44.7 million, marking the first time in its history that quarterly earnings exceeded the VND1 trillion mark to touch $40 million.

In addition to gains from proprietary trading and lending growth, HDS recognised more than $24 million in revenue from securities underwriting and issuance agency services during Q2. This helped lift the company’s total revenue by 171 per cent on-year to $57.08 million.

With these new entrants, Vietnam's securities industry now has six firms reporting quarterly pre-tax profit exceeding $40 million mark: VPBankS, TCBS, SSI, VPS, HDS, and VNDirect. VNDirect also delivered impressive second-quarter results, with pre-tax profit rising more than 126 per cent to surpass $44.20 million.

On the other hand, several major brokerage firms suffered sharp earnings declines. Not only did these companies report negative profit growth, but the magnitude of the declines also drew attention, particularly at VIX Securities JSC and Saigon-Hanoi Securities JSC (SHS).

VIX Securities posted one of the industry's steepest declines, with second-quarter 2026 pre-tax profit falling more than 95 per cent on-year to just $3.01 million.

One of the main reasons behind the decline was weaker performance in financial assets measured at fair value through profit or loss (FVTPL).

Income from FVTPL assets decreased by $30.76 million, while losses on FVTPL assets increased by $34.63 million. The company's proprietary trading portfolio is currently incurring losses.

Also weighed down by proprietary trading losses and a sharp rise in financial expenses, Q2 pre-tax profit at SHS plunged 75 per cent to only $3.59 million. During the first six months of the year, SHS completed just 21 per cent of its annual profit target.

Many smaller-cap brokerage firms also reported weaker business performance, with profits declining across the board, including Thien Viet Securities (down 76 per cent), DSC Securities (down more than 63 per cent), and Wall Street Securities (down 92 per cent).

Looking at the broader picture, margin lending continues to be the industry's ‘golden goose’.

Outstanding margin loan balances at many brokerage firms have continued to hit record highs as demand for leverage increased alongside the market's upward momentum. Both industry leaders and many mid-sized brokerages reported substantial growth in outstanding margin loans compared with the beginning of the year.

Although Vietnam's stock market remains in a phase of consolidation and sideways trading, analysts continue to express confidence in its medium- and long-term growth prospects.

Supported by favourable macroeconomic fundamentals, the market is also approaching its anticipated upgrade to emerging market status, a move expected to attract additional foreign capital into Vietnamese equities and, in turn, provide a direct boost to the business performance of securities firms.

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