DSC Securities Q3/2026: Pre-Tax Profit Collapses 98% on Proprietary Trading Loss

Overview

DSC Securities (HOSE: DSC) reported Q3/2026 pre-tax profit of VND 4.2 billion, down 98% from VND 168 billion a year earlier, according to the company’s quarterly financial statements. Operating revenue fell 38% year on year to nearly VND 161 billion, with the shortfall concentrated in proprietary trading, where a VND 55 billion FVTPL revaluation loss replaced a prior-year reversal. The result leaves nine-month pre-tax profit at VND 97 billion, down nearly 67% from VND 291 billion in the first nine months of 2025.

Key Facts

• Q3/2026 operating revenue: nearly VND 161 billion, down 38% from roughly VND 260 billion in Q3/2025.
• Q3/2026 pre-tax profit: VND 4.2 billion, down 98% year on year; after-tax profit above VND 4 billion, down 97%.
• FVTPL gains: nearly VND 54 billion, down 54% year on year; gains on sale of FVTPL assets fell from more than VND 85 billion to about VND 604 million, a drop of over 99%.
• FVTPL revaluation: a loss of VND 55 billion versus a VND 3 billion reversal in the prior-year period, pushing operating expenses up 93% to VND 75 billion.
• Brokerage revenue: VND 15 billion, down 64% year on year; lending and receivables income rose about 4% to nearly VND 74 billion.
• Financial costs: VND 69 billion, up 67%, entirely interest expense; securities-company management expense rose 11% to more than VND 12 billion.
• Nine-month 2026: revenue near VND 492 billion (-5%), pre-tax profit VND 97 billion (-67%), after-tax profit VND 78 billion.
• Total assets at 30 September 2026: more than VND 6,823 billion, down about VND 237 billion from the start of the year; short-term borrowings about VND 3,680 billion.

What Happened

The figures come from DSC Securities’ Q3/2026 financial statements, as reported by Nhịp sống thị trường. The company, listed on HOSE, attributed the profit collapse to proprietary trading: gains on the FVTPL portfolio fell sharply while a revaluation loss of VND 55 billion on the same portfolio reversed a VND 3 billion write-back in the comparable quarter. That swing lifted operating expenses 93% to VND 75 billion even as brokerage costs declined.

Brokerage activity also weakened, with securities brokerage revenue down 64% to VND 15 billion. The margin-lending book held up better: income from loans and receivables rose about 4% to nearly VND 74 billion, and interest from held-to-maturity investments rose nearly 29% to more than VND 7 billion. On the cost side, financial expenses climbed 67% to VND 69 billion, all of it interest on borrowings, while management expense rose 11% to more than VND 12 billion. The filing does not disclose a full-year profit target or a breakdown of the FVTPL portfolio by holding.

Market Context

DSC closed at VND 9,600 on 19 October 2026, placing the stock in the low-price segment of the HOSE securities group, where valuations are typically sensitive to earnings volatility. The Q3 result is a sharp reversal for a brokerage that had been scaling its proprietary book and margin lending; total assets of more than VND 6,823 billion against short-term borrowings of about VND 3,680 billion show a balance sheet still heavily reliant on debt funding. The miss lands against a broader Vietnamese securities sector in which earnings have become increasingly dependent on proprietary trading gains and margin interest rather than core brokerage fees, making quarterly results more cyclical.

Strategic Significance

The quarter exposes the concentration risk in DSC’s earnings model: with brokerage revenue down 64% and proprietary trading swinging to a revaluation loss, the durable income lines, margin lending and HTM interest, were not large enough to absorb the hit. For long-term holders, the key question is whether the VND 55 billion FVTPL mark-down reflects temporary market weakness or a portfolio positioned poorly for current conditions. The 67% rise in interest expense also matters: funding costs are rising faster than lending income, compressing the spread that underpins the margin business. A recovery in proprietary gains would restore headline profit quickly, but it would not by itself fix the weaker brokerage franchise.

What to Watch

• Q4/2026 financial statements, expected in January 2027, for whether FVTPL revaluation losses reverse.
• The composition of the VND 3,064 billion FVTPL portfolio at 30 September 2026, down about VND 255 billion from the start of the year.
• Brokerage market-share data for Q4/2026 to test whether the 64% revenue decline was company-specific or sector-wide.
• Short-term borrowing levels, about VND 3,680 billion, and any change in interest expense as a share of lending income.
• Any company disclosure on the 2026 profit plan and whether the nine-month VND 97 billion pre-tax result leaves the target reachable.