Earnings release Q3 2023

EARNINGS RELEASE

VIETCAP ACHIEVES PROFIT BEFORE TAX OF VND210BN IN Q3 2023

Vietcap Securities (HOSE: VCI, “Vietcap” or “the company”) announces its business results for the third quarter of 2023 (Q3 2023) and the first nine months of 2023 (9M 2023).

Q3 2023 and 9M 2023 financial summary

Profit before tax (PBT): For Q3 2023, PBT was VND210bn (USD8.8mn), improving by 61% from Q2 2023. For 9M 2023, PBT was VND422bn (USD17.6mn), down 59% compared to 9M 2022 and fulfilling 42% of Vietcap’s 2023 guidance of VND1tn (USD41.7mn).

Return on equity (ROE): Trailing-twelve-month (TTM) ROE was 5.8% for Q3 2023 (7.2% net of differences in equity due to asset revaluation).

Total equity: VND7.291tn (USD307.1mn) as of end-September 2023 — 12% higher than at end-December 2022.

Q3 2023 and 9M 2023 business segment highlights

Brokerage

Brokerage recorded Q3 2023 revenue of VND164bn (USD6.8mn; 41% higher compared to Q2 2023) and PBT of VND57bn (USD2.4mn) compared to VND35bn (USD1.5mn) in Q2 2023. For 9M 2023, brokerage recorded PBT of VND90bn (USD3.8mn). Vietcap ranked eighth on HOSE with a brokerage market share of 4.00% in Q3 2023.

Investment Banking

Vietcap’s Investment Banking Department was in the process of conducting notable advisory deals. Revenue from these unfinished deals was not recognized in 9M 2023.

Investment

Investment revenue was VND314bn in Q3 2023 (USD13.1mn; 65% higher than in Q2 2023) with PBT of VND121bn (USD5.1mn; 52% higher compared to Q2 2023). In Q3 2023, Vietcap made several trades in BSR, MBB, PVS, VPB, VNM, FPT among other stocks. Investment activity continued to be the key earnings driver for Vietcap in 9M 2023, achieving PBT of VND246bn (USD10.2mn).

Margin lending

Margin lending achieved revenue of VND203bn in Q3 2023 (USD8.4mn; 4% higher compared to Q2 2023) and PBT of VND46bn (USD1.9mn; 75% higher than in Q2 2023).
Vietcap’s margin lending balance as of end-September 2023 was VND5.783tn (USD240.9mn; 10% higher compared to end-December 2022).

9M 2023 financial position highlights

Vietcap’s debts were VND8.723tn (USD363.4mn) as of end-September 2023, increasing 38% compared to end-December 2022. These debts were all short-term and mainly used to fund margin lending activities.
Vietcap’s total debt to equity ratio increased to 119.6% at end-September 2023 compared to 105.8% at end-December 2022.
Vietcap’s total assets were VND16.917tn (USD704.9mn) at end-September 2023 — 19% higher compared to end-December 2022.

Notable corporate actions in 9M 2023

Viet Capital Securities Joint Stock Company officially changed its name to Vietcap Securities Joint Stock Company (“Vietcap”), with a new brand identity across all platforms. The updated name and logo went into effect on April 12, 2023. Vietcap’s rebrand is designed to symbolize the company’s innovative spirit and aspiration to maintain its position as Vietnam’s leading and most reputable financial services institution. Although the name has changed, Vietcap's dedication to serving its clients remains the same. The company will continue to strive for excellence, expanding its existing ecosystem, investing in new technological solutions, and following global standards. We are excited to welcome its next chapter of growth.

In June 2023, Vietcap issued 2,000,000 ESOP shares (equivalent to 0.5% of total outstanding shares prior to the ESOP issuance). Vietcap’s total outstanding shares as of end-September 2023 were 437.5 million shares.
In July 2023, Vietcap signed syndicated loan financing for USD45mn (equivalent to VND1,080bn). The loan was arranged by Shanghai Commercial and Savings Bank, Ltd., through its offshore banking branch, and carries short-term interest rates based on the international money market.
In August 2023, Vietcap signed syndicated loan financing for USD100mn (equivalent to VND2.4tn). The loan was arranged by Mega International Commercial Bank through its offshore banking branch and carries short-term interest rates based on the international money market.

Income Statement Highlights