Bank stocks experienced big waves, and self-operated securities firms “benefited” (P1)

The strong rising momentum of the banking sector has contributed significantly to the profits of proprietary securities companies. The stock market enters the 2024 New Year with a strong start to the trading week. So far this week, it is up 24.75 points (+2.14%). Bank stocks posted strong gains last week, driving the index higher.

The banking group’s winner this week came from shares MBB (HM:) (+9.92%), followed by VBB (+8%), VCB (HM:) (+7.35%), OCB (+7.14%)… only 2 The scores of /28 bank stocks were unchanged from the beginning of the week, including SSB (-1.26%), VAB (-1.39%), VPB share price (HM:).

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Bank stocks have increased by 100% in the past month, led by ACB (HM:) (+14.9%), MBB (+13.57%), NAB (+12.77%), and BID (HM:) (+12.23%) ). ..At the bottom of the ranking is VPB (+0.26%).

Assessing the prospects of the entire banking industry this year, VCBS Research believes that profits will continue to show strong differentiation in 2024, with a growth rate of around 10%, and some small-scale group banks will continue to slow down or even experience negative growth. The current industry-wide price-to-book ratio valuation is about 15% lower than the five-year average. Banking groups with good asset quality and excellent growth rates compared with the industry include: ACB, BID, MBB, MSB, STB, TCB (HM:), VCB, VIB (HM:).

The sharp rise in bank stocks has brought huge profit contributions to many securities firms with proprietary businesses that “hold” such stocks.

SSI Securities (HM:) holds STB – “loss” turns to “profit”?

STB shares have gained 5.4% over the past week and 5.9% for the month. As of September 30, 2023, proprietary trading company SSI Securities (HoSE: SSI) held VND 303.6 billion in STB shares (based on the same market price), with a loss of VND 16.4 billion. The acquisition price is VND320 billion.

From September 30, 2023 to January 5, 2023, STB increased by 7.39%, if SSI still holds the correct number of shares mentioned above, it can return to profitability and tentatively calculate a profit of VND 26 billion (compared to cost) .

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In addition to investing in stocks, most of SSI’s proprietary trading assets were used to purchase VND10,530.5 billion in unlisted bonds and VND16,022.5 billion in certificates of deposit.

VPB Securities (HM:) may reduce profits if VPB remains held

VPB shares were unchanged after 1 week of trading, despite sharp gains across the banking group. In the past month, VPB has increased by 0.26%, ranking at the bottom of the list of bank stock gains.

As of September 30, 2023, VNDirect Securities (HoSE: VND) held 555.1 billion VND in VPB shares (calculated based on the same market price), making a profit of 56.6 billion VND (+11.35%) compared with the original price 498.5 billion VND .

From September 30, 2023 to January 5, 2024, VPB stock price fell by 7.16%, so if the above ratio continues to date, proprietary trading in VND may reduce profits.

In addition to allocating assets to stocks, VNDirect Securities’ FVTPL portfolio also invested the majority of its assets in unlisted bonds and certificates of deposit, amounting to VND9,429.5 billion and VND7,123.8 billion respectively.

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