HSC Q3 2026 Earnings: Pre-Tax Profit Falls 33% as Brokerage Revenue Drops 70%

Overview

Công ty Cổ phần Chứng khoán TP.HCM (HSC) reported Q3 2026 revenue of VND 1,182 billion, down 15% year on year, and pre-tax profit of VND 371 billion, down 33% against a high base in Q3 2025. The result was carried by margin lending as brokerage revenue fell 70% amid a sharp contraction in market liquidity, while nine-month pre-tax profit of VND 1,075 billion was flat year on year.

Key Facts

• Q3 2026 revenue: VND 1,182 billion, down 15% year on year; pre-tax profit VND 371 billion, down 33%.
• Nine-month 2026 revenue: VND 3,634 billion, up 17%; pre-tax profit VND 1,075 billion, flat year on year.
• Margin lending revenue: VND 758 billion in Q3, up 18%; outstanding margin loans VND 29,170 billion at 30 September 2026, up 4% from VND 28,150 billion at the start of the year.
• Brokerage revenue: VND 152 billion, down 70% year on year; Q3 2026 market share 6.1%, ranking fifth on HOSE.
• Average daily market turnover in Q3 2026 was about VND 18,500 billion, down 58% from a record VND 43,800 billion a year earlier; foreign investors net sold more than VND 18,000 billion.
• Total operating expenses: VND 811 billion, down 3%; interest expense rose 30% to VND 508 billion.
• Total assets VND 43,044 billion at 30 September 2026, down 4% year on year; equity VND 14,505 billion, up 37%; charter capital raised to VND 13,728 billion after a 4:1 rights issue and ESOP shares.

What Happened

HSC published its Q3 2026 financial statements showing revenue of VND 1,182 billion and pre-tax profit of VND 371 billion, declines of 15% and 33% respectively against the strong Q3 2025 base. The company attributed the brokerage contraction to weaker market liquidity and to the prior-year comparison, which included distribution fees from the TCBS IPO. Self-trading and treasury operations contributed VND 247 billion, up 9%, mainly from interest on bank bonds and term deposits plus warrant issuance and market-making. Corporate finance advisory revenue was VND 9 billion, with M&A and DCM mandates expected to contribute in coming quarters.

Total operating expenses fell 3% to VND 811 billion. Interest expense rose 30% to VND 508 billion, tracking the larger margin lending book, while brokerage costs and fixed costs declined. On the balance sheet, total assets fell 4% year on year and 7% from the start of the year as the company trimmed its equity and deposit certificate portfolios. Equity rose 37% to VND 14,505 billion following the late-2025 share issuance. HSC completed a 4:1 rights issue to existing shareholders and an ESOP issuance in Q3 2026, with the new capital formally recorded in October 2026, lifting charter capital to VND 13,728 billion.

Market Context

HSC trades on HOSE, where its 6.1% Q3 2026 brokerage market share placed it fifth among securities firms. The quarter was defined by a market-wide liquidity squeeze: average daily turnover of roughly VND 18,500 billion was 58% below the record VND 43,800 billion of Q3 2025, and foreign investors net sold more than VND 18,000 billion. The source article does not provide HSC’s share price performance or valuation multiples for the period.

Strategic Significance

The quarter illustrates how HSC’s earnings mix has shifted toward balance-sheet businesses. Margin lending now generates roughly five times brokerage revenue, so profitability depends more on funding costs and loan-book growth than on trading volumes. The 30% rise in interest expense against 18% margin revenue growth shows the cost of that model, and the October recognition of fresh capital is the key variable for expanding the loan book. The pending M&A and DCM advisory mandates offer a fee stream less correlated with secondary-market turnover, though at VND 9 billion in Q3 they remain immaterial.

What to Watch

• Q4 2026 results showing whether the new capital from the rights issue and ESOP expands the margin lending book beyond VND 29,170 billion.
• Monthly HOSE turnover data, to test whether the 58% year-on-year liquidity decline persists into Q4.
• Interest expense trajectory, after the 30% rise to VND 508 billion in Q3.
• Brokerage market share updates, with HSC at 6.1% and fifth place on HOSE.
• Disclosure on M&A and DCM advisory mandates expected to contribute in coming quarters.