KB Securities Vietnam's net income decreased by 18% despite a 14% increase in net revenue.

DNHN - Although KB Securities Vietnam Joint Stock Company's (KBSV) operating revenue increased by 14% in the second quarter of 2023, after-tax profit decreased by 18% compared to the same period in the prior year.

According to the financial statements for the second quarter of 2023, the Company's operating revenue exceeds VND 308 billion, an increase of 14% compared to the same period in the prior year.

The profit from financial assets FVTPL is over 62 billion dongs, an increase of 58%, while the profit from hold-to-maturity (HTM) investments is nearly 56 billion dongs, nearly three times greater. In addition, interest on loans and receivables increased by 2% to reach VND 132 billion.

During the same period, securities brokerage activities collected more than 56 billion dongs, a 27% decrease from the previous period.

Total operating expenses decreased by 20% to 69 billion VND in the second quarter. In which the loss of FVTPL assets was just over 780 thousand VND, whereas the loss was 321 million VND during the same period. Brokerage expenses fell 26% to VND61 billion. The expenses for securities depository and financial advisory services were equal at 1.5 billion dong, a decrease of 7% and 40%, respectively.

After deducting expenses, the gross profit from business activities increased by 30 percent to VND 239 billion. However, after-tax profit fell 18% to 62 billion dongs. The reason for this is that management expenses (VND 25 billion) and interest expenses (VND 135 billion) spiked by 31% and 89%, respectively, over the same period.

The Company generated 567 billion dongs in operating revenue in the first half of the year, a 5% increase over the same period last year; profit after tax is 159 billion dongs, down 24%.

The Company's total assets reached approximately VND 11,747 billion at the end of the second quarter of 2023, a 19% increase from the beginning of the year. The value of FVTPL's assets is VND 2,770 billion, consisting primarily of certificates of deposit; the company does not hold many listed stocks.

In addition, the Company holds over VND 897 million worth of Capella Group JSC (BTL) shares as financial assets available for sale (AFS).

Notably, at the end of the second quarter, the Company's HTM investment consisted primarily of deposits with a term of over 3 months to 1 year, totaling VND 3,372 billion, nearly 3 times higher than at the beginning of the year. Additional balances of deposits were recorded at Viet A Commercial Joint Stock Bank (350 billion), Woori Bank - Hanoi Branch (100 billion), Southeast Asia Commercial Joint Stock Bank (198 billion), and Vietnam Bank (100 billion VND).

The margin loan balance was VND 5,024 billion at the end of the second quarter, down 2% from the beginning of the year.

On the counterpart side, liabilities totaled VND7,721 billion, primarily comprised of VND7,455 billion in short-term bank loans, an increase of 28% compared to the beginning of the year.

KBSV is a subsidiary of KB Securities, which is a division of KB Financial Group, one of the largest financial institutions in Korea. KBSV offers Clients, including corporations, institutional investors, and individual investors, Securities Services, and Professional Investment Banking Services. KBSV, which was founded in 2008, has its headquarters in Hanoi, two branches in Hanoi and Ho Chi Minh City, and nearly 500 employees.

Nguyen An (General)