VIETCAP ACHIEVED PROFIT BEFORE TAX OF VND228BN IN Q1 2024

EARNINGS RELEASE

Vietcap Securities (HOSE: VCI, “Vietcap,” or “the company”) announces its business results for the first quarter of 2024 (Q1 2024).

Q1 2024 financial summary

Profit before tax (PBT): For Q1 2024, PBT was VND228bn (USD9.1mn), surging 53% from last quarter Q4 2023 and 182% from Q1 2023.

Return on equity (ROE): Trailing-twelve-month (TTM) ROE was 7.9% for Q1 2024 (10.5% net of differences in equity due to asset revaluation).

Total equity: VND8,177bn (USD327.1mn) as of end-March 2024 — 11% higher than at end-December 2023.

Q1 2024 business segment highlights

Brokerage

Brokerage recorded Q1 2024 revenue of VND186bn (USD7.5mn; 30% higher compared to last quarter- Q4 2023) and PBT of VND65bn (USD2.6mn; compared to VND12bn/USD0.5mn in Q4 2023). Vietcap ranked sixth on HOSE with a brokerage market share of 5.57%, increasing from 4.60% in Q4 2023.

Investment Banking

Investment Banking revenue was VND4bn in Q1 2024 (USD0.2mn; 76% lower than in Q4 2023) but recorded a net loss of VND6bn (USD0.2mn; compared to a net loss of VND9bn/USD0.4mn in Q4 2023). Vietcap’s Investment Banking Department has been in the process of conducting notable advisory deals.

Investment

Investment recorded Q1 2024 revenue of VND433bn (USD17.3mn; 3% lower than in Q4 2023 but 111% higher than Q1 2023) and PBT of VND126bn (USD5.1m; 24% higher than Q4 2023). In Q1 2024, Vietcap made several trades in FPT, MBB, HPG, and MCH, among other stocks.

Margin Lending

Margin Lending achieved revenue of VND190bn in Q1 2024 (USD7.6mn; 5% lower compared to Q4 2023) and PBT of VND42bn (USD1.7mn; 5% lower compared to Q4 2023 but 14% higher compared to Q1 2023).
Vietcap’s margin lending balance as of end-March 2024 was VND8,573bn (USD342.9mn; 7% higher compared to end-December 2023).

Q1 2024 financial position highlights

Vietcap’s debts were VND10,240bn (USD409.6mn) as of end-March 2024, increasing 14% compared to end-December 2023. These debts were all short-term and mainly used to fund margin lending activities.
Vietcap’s total debt to equity ratio increased to 125.2% at end-March 2024 compared to 121.8% at end-December 2023.
Vietcap’s total assets were VND19,545bn (USD781.8mn) at end-March 2024 — 13% higher compared to end-December 2023.

Notable corporate actions in Q1 2024

In January 2024, Vietcap signed syndicated loan financing for USD34mn, incorporating a greenshoe option up to USD100mn. The loan was arranged by Bank SinoPac and Bank of Kaohsiung – Offshore Banking branch.

Income Statement Highlights

Balance Sheet Highlights