According to its Q2 financial report, MBS, a subsidiary of MB Bank, saw its loan portfolio increase by nearly 12% compared to the beginning of the year. Of this, 99% was allocated to margin lending. This activity generated 465 billion VND in revenue for MBS, a 51% improvement year-on-year. Management attributed lending as a primary growth driver for the company during the quarter.

Proprietary trading, including gains from financial assets recorded at fair value through profit or loss (FVTPL), contributed 325 billion VND to MBS's Q2 revenue, following lending activities. This figure represents an 88% increase from the same period last year.

However, the value of the FVTPL portfolio decreased by nearly 80 billion VND compared to Q1, settling at over 3,000 billion VND. The company reduced its stock portfolio by 85% to approximately 26 billion VND, currently recording a provisional loss of over 25 billion VND.

An MB Securities transaction office. Photo: MBS

Securities brokerage revenue also fell by 15% to 164 billion VND. MBS's brokerage market share contracted from 5,29% in Q1 to 4,79%. This trend aligns with the broader market, where brokerage market share for securities firms is shrinking due to competitive pressures.

By the end of Q2, MBS reported revenue of 1,196 billion VND, a 51% increase year-on-year. Operating expenses edged up 55% to 378 billion VND, driven by rising interest costs. Despite this, the company still achieved a pre-tax profit of 377 billion VND, a 38,6% improvement from the same period last year.

For the cumulative six months, MBS's operating revenue reached 2,215 billion VND, up 52% year-on-year. Pre-tax profit stood at 745 billion VND, an improvement of 22% and achieving 40% of its annual plan.

As of 30/6, the securities firm, a subsidiary of MB Bank, reported total assets of 34,155 billion VND, an 11% increase from the beginning of the year. MBS's asset base expanded primarily due to a significant rise in equity, following the completion of an issuance of over 333 million shares to increase its charter capital to over 10,000 billion VND.

According to forecasts from National Securities Joint Stock Company (NSI), MBS's outstanding margin loan balance could reach 22,500 billion VND by the end of this year, a 55% increase from the start of the year. Additionally, its brokerage market share might increase to 6%.

At an investor conference in early February, MB Chairman Luu Trung Thai stated that the bank plans to enter the gold trading sector. They have already prepared the technological infrastructure to operate a gold exchange but are awaiting regulatory licensing and quota allocation for official implementation. NSI Securities believes that MBS could further benefit from the development of derivative products once MB launches its gold exchange, given the parent bank's plan.

Trong Hieu