AsemconnectVietnam - Saigon - Hanoi Securities Joint Stock Company (SHS) has just announced its audited financial statements for 2022 with operating revenue of VND1,542.5 billion, down 46.7% compared to 2021.

In 2022, VN-Index decreased by 32.8% compared to the end of 2021 and is one of the most negative stock indexes in the world. HNX-Index decreased by 56.7%, UPCoM-Index decreased by 36.4% compared to the end of 2021.
Many key stock groups of the market such as real estate, securities, and banks all plummeted when they were negatively affected by inflation, rising interest rates both in the world and in Vietnam, especially from events in the bond market. The liquidity of the whole market decreased by 23.5% due to the disruption of cash flow and investors were risk averse before unusual events.
In that context, securities companies are strongly affected. Saigon - Hanoi Securities Joint Stock Company (SHS) has just announced its audited financial statements for 2022 with operating revenue of VND1,542.5 billion, down 46.7% compared to 2021. Income from lending and receivable activities reached VND567.8 billion, down 17.5% and accounted for the largest proportion, revenue from brokerage activities decreased 40% to VND332.8 billion, profit from natural revenue was VND464.4 billion, down 68.7%. Financial consulting activities increased by 6.9 times compared to 2021 to VND83.6 billion.
Operating expenses increased by 30.7% yoy to nearly VND1,089 billion, of which the loss from financial assets recognized through profit/loss (FVTPL) was VND725 billion while the same period was 91.5 billion (accounting for 66.6% of SHS's total operating expenses). Many of the proprietary trading losses were actually deducted from profits because previous quarters had recorded profits when market prices were high.
Financial expenses increased by 9.54% to VND163.3 billion while SHS's administrative expenses decreased by 40.4% to VND98.2 billion.
SHS recorded a pre-tax profit of VND197.2 billion, after deducting taxes and fees, the profit after tax in 2022 is VND162.2 billion. With this result, SHS will soon be brought back to the list of securities with margin loans by the Securities Commission after being excluded in August 2022.
Compared with the business plan with VND3,428 billion of total revenue and VND2,025 billion of pre-tax profit, by the end of 2022, SHS has achieved 45% and nearly 10% of the whole year target, respectively.
As of December 31, 2022, the company's total assets are at nearly VND10,900 billion, of which the value of FVTPL's assets is more than VND4,300 billion - an increase of 61% compared to the beginning of the year (including stocks and bonds). Outstanding loans decreased sharply by 60% to more than VND2,355 billion.
SHS's equity increased by nearly 56% YTD to VND9,436 billion, including VND765 billion of undistributed profit after tax. In 2022, SHS successfully increased its charter capital from over VND3,252 billion to over VND8,131 billion. In contrast, liabilities dropped sharply from VND4,855 billion at the beginning of the year to more than VND1,464 billion (more than 93% is short-term debt).
N.Nga
Source: VITIC/Tinnhanhchungkhoan