EARNINGS RELEASE

VIETCAP ACHIEVES PROFIT BEFORE TAX OF VND571BN IN FULL-YEAR 2023

Vietcap Securities (HOSE: VCI, “Vietcap” or “the company”) announces its business results for the fourth quarter of 2023 (Q4 2023) and full-year 2023 (FY2023).

 

Q4 2023 and 2023 financial summary

Profit before tax (PBT): For Q4 2023, PBT was VND149bn (USD6.1mn), down 29% from last quarter Q3 2023 but improving by 361% from Q4 2022. For full-year 2023, PBT was VND571bn (USD23.3mn), down 46% compared to full-year 2022 and fulfilling 57% of Vietcap’s 2023 guidance of VND1tn (USD41.7mn). 

Return on equity (ROE): Trailing-twelve-month (TTM) ROE was 7.1% for full-year 2023 (8.8% net of differences in equity due to asset revaluation). 

Total equity: VND7,371bn (USD300.9mn) as of end-December 2023 — 13% higher than at end-December 2022.


Q4 2023 and 2023 business segment highlights

Brokerage

  • Brokerage recorded Q4 2023 revenue of VND143bn (USD5.8mn; 11% higher compared to Q4 2022) and PBT of VND12bn (USD0.5mn; compared to a VND6bn/USD0.2mn loss in Q4 2022). For full-year 2023, brokerage recorded PBT of VND102bn (USD4.2mn; 47% lower compared to full-year 2022). Vietcap ranked eighth on HOSE with a brokerage market share of 4.47% in full-year 2023. 

Investment Banking

  • Investment Banking revenue was VND19bn in Q4 2023 (USD0.8mn; 75% lower than in Q4 2022) but recorded a net loss of VND9bn (USD0.4mn; compared to a profit VND53bn/USD 2.2mn in Q4 2022). Vietcap’s Investment Banking Department was in the process of conducting notable advisory deals. Revenue and profit from these unfinished deals was not fully recognized in 2023. 

Investment 

  • Investment recorded Q4 2023 revenue of VND446bn (USD18.2mn; 10% higher than in Q4 2022) and PBT of VND101bn (USD4.1mn compared to a VND48bn/USD2.0mn loss in Q4 2022). In Q4 2023, Vietcap made several trades in MBB, PVS, POW, and FPT among other stocks. Investment activity continued to be the key earnings driver for Vietcap in full-year 2023, achieving PBT of VND347bn (USD14.2mn; growing 17% compared to full-year 2022).


Margin lending

  • Margin lending achieved revenue of VND200bn in Q4 2023 (USD8.2mn; 4% higher compared to Q4 2022) and PBT of VND44bn (USD1.8mn; 32% higher than Q4 2022). Higher cost of fund is main factor weighing on margin lending’s profitability throughout 2023.
  • Vietcap’s margin lending balance as of end-December 2023 was VND7,992bn (USD326.2mn; 51% higher compared to end-December 2022). 

 

2023 financial position highlights

  • Vietcap’s debts were VND8,979bn (USD366.5mn) as of end-December 2023, increasing 31% 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 121.8% at end-December 2023 compared to 105.8% at end-December 2022. 
  • Vietcap’s total assets were VND17,255bn (USD704.3mn) at end-December 2023 — 21% higher compared to end-December 2022.


Notable corporate actions in 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. The loan was arranged by Shanghai Commercial and Savings Bank, Ltd., through its offshore banking branch.
  • In August 2023, Vietcap signed syndicated loan financing for USD100mn. The loan was arranged by Mega International Commercial Bank through its offshore banking branch.
  • In November 2023, Vietcap signed syndicated loan financing for USD75mn incorporating a greenshoe option up to USD50mn. The loan was arranged by Maybank Securities Pte. Ltd. and Taishin International Bank Co., Ltd. Singapore Branch, as mandated lead arrangers and bookrunners.

Income Statement Highlights

Balance Sheet Highlights

Vietcap earnings release Q4 2023 (EN)

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