TCBS achieved a profit of 1,000 billion VND in the first half of 2023, reaching 50% of the plan, free trading on TCInvest

• Profit Before Tax (PBT) reached VND 552 billion, rising 23% compared to Q1 2023. Accumulated profit before tax for the first 6 months was nearly VND 1,000 billion, reaching 50% of the whole year plan.
• Total Operating Income (TOI) reached VND 653 billion, up 16% compared to Q1 2023.
• Cost to Income Ratio (CIR) at 16% – down nearly 5% compared to Q1 2023.
• Equity at the end of June 2023 increased by 94% compared to Q1 2023, reaching VND 22,004 billion thanks to the successful private placement of shares to TCB worth more than VND 10,000 billion in Q2 2023.
• Return on equity (ROE) was 12% and return on assets (ROA) was 6%.

ANALYSIS OF BUSINESS RESULTS

• In Q2 2023, revenue from securities brokerage operations reached VND 122 billion, up 27% compared to Q1 2023. The stock brokerage market share of TCBS (HoSE) has risen sharply from the 8th place in Q1 2023 to the 4th place in Q2 2023 reaching 5.5%.
• As a pioneer in providing outstanding digital conveniences and experiences, TCBS has attracted more than 22.000 new accounts opened in Q2 2023, accounting for 8% of the total number of new openings in the market, bringing the total number of individual customers of the Company to more than 900.000 customers.
• TCBS continued to maintain the policy of Zero Fee – Free trading of Stocks, Derivatives, Warrants and Fund Certificates listed without any time limit. In the first half of 2023, this free policy has helped customers save nearly 100 billion VND in transaction fees.

• Interest income on margin loans reached VND 398 billion, up 45% compared to Q1 2023. The State Bank’s drastic moves to cut operating interest rates to support the economy have helped attract money to invest in the stock market. Average liquidity in Q2 2023 has sharply increased by 40% compared to Q1 2023, reaching about VND 16,000 billion/day and the VN index has increased by 5.2% to 1,120 points on June 30, 2023.
• With prudent risk management policy and automatic margin lending risk management system, TCBS confidently grows loan balances to help customers maximize profit opportunities in the stock market. The doubling of equity also helped increase margin lending capacity, enabling the Company to provide flexible loan packages (Dynamic margin and Margin T+) as well as a stable loan commitment to meet different needs of customers.

• The investment banking segment in Q2 2023 recorded revenue of VND 224 billion (equivalent to Q1 2023). TCBS continues to maintain the No. 1 market share in issuance consulting in the market with the volume of issuance consulting in the first half of 2023 exceeding VND 36,000 billion, accounting for 66% of the market share.
• The Government’s recent regulatory amendments (e.g. Decree 08/2023/ND-CP) have partly removed bottlenecks for the corporate bond market, helping to increase the resilience of the corporate bond market in the coming quarters.

Capital and bond distribution business
Net profit from the sale of financial assets increased slightly by 4% compared to Q1 2023, reaching VND 340 billion.  Retail bond distribution sales increased by 63% compared to Q1 2023, demonstrating investor confidence in TCBS and the bond products distributed by the Company.

ANALYSIS OF THE FINANCIAL SITUATION

• Total assets reached VND 34.8 trillion at June 30, 2023, up 38% q-o-q and up 24% y-o-y.
• Outstanding margin loans increased by 7% compared to the end of Q1 2023, demonstrating the trend of investors starting to return to the stock market along with the need for margin loans to catch up with the recovery of the stock market in particular and the economy in general.
• TCBS always implements diversified sources of mobilized capital with a total loan source of more than VND 11 trillion. In April 2023, TCBS continues to successfully sign unsecured loan contracts with four leading financial institutions in the region including Cathay United Bank, Taipei Fubon Commercial Bank, CTBC Bank and Taishin International Bank worth USD 118 million (about VND 2,800 billion), bringing the total accumulated foreign unsecured loan limit to more than USD 600 million, belongs to the highest group in the securities industry. This demonstrates the confidence of international financial institutions in the financial health as well as the development potential of TCBS in the future.
• In Q2 2023, TCBS has successfully issued more than VND 10,000 billion of individual shares to TCB, bringing TCBS’s total equity to over VND 22,000 billion, increasing nearly 2 times compared to the previous quarter, and thereby reducing the Net Debt/Equity ratio from 96% in Q1 2023 to 29% in Q2 2023. This capital increase is one of the strategic steps to make TCBS become the largest Wealthtech company in Vietnam in terms of equity, profitability, and operational efficiency in core businesses.

CUSTOMERS AND OTHER BUSINESS FOOTPRINTS IN Q2 2023

• The new iON feature helps optimize overnight money on TCBS securities accounts with overnight interest of 3%/year, higher than the non-term interest rate.
• TCBS reserves exclusive privileges for its clients – free use of useful features of the most advanced version of TradingView’s Charting & Trading Platform on TCInvest. TCBS is the first stock company in Vietnam to use this premium version to help individual investors to use trading tools of professional organizations but completely free.
• Launching a new online version of iBond trading to help customers make online bond investment transactions conveniently and quickly.

AWARDS AND OTHER RECOGNITION

• TCBS was honored: “Most Innovative Use of Technology” at FinanceAsia Country Awards; “Digital Wealth Manager of the Year” and “Best Data Analytics Project – TCAnalysis” at The Asset Triple A Digital Awards 2023.  
• TCBS’s Microsoft Secure Score (MSS) in Q2 2023 rated near a perfect 90.31/100, more than double the average score of organizations assessed by MSS (~42 points).
• TCBS is a “Pioneer in applying Blockchain technology in the digital transformation of finance and banking” at the 1st-anniversary ceremony of the Vietnam Blockchain Association.

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