TCBS’s profits continue to grow thanks to the lending segment

According to the first quarter financial report, Techcom Securities Joint Stock Company (TCBS) recorded revenue of 2,783 billion VND, an increase of 37% over the same period last year. Of which, the enterprise’s margin lending segment contributed VND 1,228 billion, equivalent to more than half of total sales, an improvement of 68% over the same period last year.

As of March 31, TCBS’s total outstanding margin loans reached more than 44,700 billion VND, an increase of about 1,000 billion VND compared to the end of last year. The company’s margin-to-equity ratio is about 98%, lower than the ceiling set by the State Securities Commission of 200%.

During the period, the company continued to lead the industry in consulting on corporate bond issuance, with a mobilized amount of about VND 28,000 billion, accounting for 86% of the market share. In the stock segment, they ranked third in brokerage market share on the Ho Chi Minh City stock exchange, after VPS and SSI.

Excluding expenses, TCBS profit before tax was 1,458 billion VND, an increase of 11% over the same period last year. However, this is the lowest profit in the last 4 quarters of this business.

According to documents prepared for the annual meeting on April 25, TCBS set a pre-tax profit target of VND 7,535 billion, an increase of 18% compared to last year. Thus, the company has completed 19% of the year’s plan.

At the end of the first quarter, TCBS’s total assets reached 88,665 billion VND, an increase of nearly 10% compared to the beginning of the year. Of which, equity accounts for more than half, reaching VND 45,466 billion. Outstanding financial debt is nearly VND 38,500 billion with 98% being short-term loans.

TCBS is a subsidiary of Techcombank, of which this bank holds nearly 80%. Besides profits, this business also leads the industry in capitalization, with more than 120,000 billion VND.