ACB Securities Company Limited (ACBS) is about to continue to increase its charter capital. Accordingly, Asia Commercial Joint Stock Bank (code ACB, HoSE) - the parent company of ACBS has "finalized" to increase ACBS's capital by another VND3,000 billion, up to VND10,000 billion.

Not outside the recent wave of capital increase of securities companies, ACBS is one of the securities companies actively increasing its financial capacity. Previously, this securities company increased its capital from VND 3,000 billion to VND 4,000 billion in the fourth quarter of 2023; and continued to increase to VND 7,000 billion in the first quarter of 2024.

Increased equity has helped strengthen revenue in recent quarters. According to the financial report for the third quarter of 2024, ACBS achieved VND 661 billion in operating revenue, up 19% over the same period last year. Of which, the brokerage segment decreased by 21% but most other business segments recorded growth. Profit from financial assets recorded through profit/loss (FVTPL) accounted for the highest proportion in the operating revenue structure with VND 311 billion, 4%. Interest from loans and interest from held-to-maturity (HTM) investments increased by 81% to over VND 183 billion and 67% to over VND 81 billion, respectively.

Meanwhile, operating expenses were VND346 billion, down 6.7%. Financial asset losses recorded through profit/loss were VND142 billion, down 36%, in addition to brokerage costs down 10% to more than VND71 billion. As a result, ACBS's after-tax profit was nearly VND217 billion, up 81% and the quarter with the highest profit in its history.

In the first 9 months of the year, the company achieved VND1,888.6 billion in operating revenue, up 60% over the same period. Profit after tax reached VND546 billion, up 68%.

As of September 30, 2024, ACBS's total assets recorded more than VND 22,622 billion, an increase of 92% compared to the beginning of the year. Outstanding loans reached nearly VND 7,609 billion, an increase of 66% compared to the beginning of the year (the previous quarter reached VND 7,500 billion). Cash and cash equivalents reached VND 7,002 billion, 14 times higher than the beginning of the year. Financial assets also increased sharply by 93% to nearly VND 2,547 billion. Investments held to maturity were VND 5,209 billion.

A series of securities companies have increased capital. Specifically, MB Securities Joint Stock Company (code MBS, HNX floor) has completed the offering of more than 109 million shares at VND10,000/share, earning nearly VND1,100 billion, raising its charter capital to nearly VND5,500 billion. SSI Securities Joint Stock Company (code SSI, HoSE floor) has also issued more than 453 million bonus shares and offered them to existing shareholders. SSI's charter capital will increase from VND15,111 billion to nearly VND19,645 billion. VNDirect Securities Joint Stock Company (code VND, HoSE floor) has also successfully offered nearly 244 million shares to existing shareholders and paid stock dividends at a rate of 5%, raising its charter capital from VND12,178 billion to VND15,223 billion...

One of the main reasons driving the capital increase race is believed by many experts to be to prepare for upgrading the Vietnamese stock market.

Recently, allowing foreign institutional investors to place orders without sufficient funds before November 2, 2024 is expected to increase foreign capital inflows into the market and be a premise for upgrading the Vietnamese stock market. This brings direct benefits to securities companies through serving foreign institutional investors and increasing revenue from brokerage.