Vietnam Securities Sector Q1 2026 Profit Lowest in 4 Quarters as Proprietary Trading Backfires

Overview

The Vietnamese securities sector reported its weakest quarterly profit in four quarters for Q1 2026, with 40 listed firms posting a combined net profit of nearly 7,600 billion VND. Proprietary trading losses and narrowing margin lending spreads drove 17 companies into losses or year-on-year declines. EVS was the worst hit, losing 157.5 billion VND, while VDS, SBS, and OCBS also recorded losses.

Key Facts

• 40 securities companies reported total profit of nearly 7,600 billion VND in Q1 2026, the lowest in four quarters.
• 17 out of 40 firms posted losses or declines year-on-year.
• EVS recorded a loss of 157.5 billion VND, citing provisions related to NVB shares.
• VDS lost 24.2 billion VND, SBS lost 5.2 billion VND, and OCBS lost 3.475 billion VND.
• VIX profit fell over 60% year-on-year, CTS profit dropped over 30%.
• SHS announced a strategy to reduce proprietary trading exposure from 52-55% to about 35%.
• TCBS raised nearly 500 million USD from foreign institutions and noted NIM compression due to rising interest rates.

What Happened

According to a report by Tuổi Trẻ Online, the aggregate profit of 40 securities companies in Q1 2026 reached nearly 7,600 billion VND, the lowest in the past four quarters. While still growing compared to the same period last year, the results reflect headwinds from proprietary trading losses and margin lending margin compression. Most firms attributed losses to proprietary trading, with EVS specifically citing provisions on NVB shares that were actually collateral recovered from bad debts.

Nguyễn Thế Minh, Director of Investment Banking at ABS, described proprietary trading as a “double-edged sword,” noting that firms focusing on brokerage and margin lending fared better, while those heavily engaged in financial investments faced greater risk during market reversals. SHS, a firm with strong proprietary trading, announced a strategic shift to reduce reliance on this segment from 52-55% to about 35%, aiming to boost margin lending and investment banking.

Market Context

VDS closed at 15 VND on April 10, 2026, down 0.33% with low volume of 531,400 shares on HOSE. The sector-wide profit decline comes amid heightened geopolitical tensions (Middle East conflict) and rising interest rates, which have pressured both proprietary trading portfolios and margin lending margins. The VN-Index has been volatile, and the securities sector’s performance is closely tied to market turnover and credit growth.

Strategic Significance

The Q1 results underscore the structural risk of proprietary trading as a profit driver for Vietnamese securities firms. While margin lending volumes continue to grow and set new records, net interest margins are shrinking due to rising funding costs and competition for large clients. Firms like SHS are pivoting away from proprietary trading to more stable revenue streams, but the transition may take time. The ability to manage risk in proprietary books and maintain margin lending profitability will be key differentiators going forward.

What to Watch

• Q2 2026 earnings reports from major securities firms, especially EVS, VDS, and SHS, to see if losses persist.
• SHS’s progress in reducing proprietary trading exposure and its impact on overall profitability.
• Margin lending growth and NIM trends, particularly for TCBS and other large lenders.
• Geopolitical developments (Middle East) and their effect on Vietnamese equity market volatility.
• Regulatory changes regarding proprietary trading or margin lending by the State Securities Commission.