National Securities (VCI) Posts Q2/2026 Pre-Tax Loss of VND 97B, Reversing Year-Ago Profit

Overview

National Securities Corporation (VCI) reported a pre-tax loss of VND 97 billion in the second quarter of 2026, a sharp reversal from a profit of VND 42 billion in the same period last year. The loss was driven by a 50% decline in operating revenue and a 75% surge in operating costs, according to the company’s Q2 financial statements. The poor performance highlights the challenges facing VCI amid a difficult market environment for securities firms.

Key Facts

• Pre-tax loss of VND 97 billion in Q2/2026, compared to a profit of VND 42 billion in Q2/2025.
• Operating revenue fell 50% year-on-year to VND 81 billion.
• Gains from financial assets at fair value through profit or loss (FVTPL) collapsed 99% to just VND 1 billion from VND 96 billion.
• Operating costs rose 75% to VND 109 billion, driven by a 82% increase in losses on FVTPL assets to VND 104 billion.
• Net interest income from loans and receivables increased 35% to VND 75 billion.
• Brokerage revenue dropped 39% to VND 3 billion, and financial advisory revenue fell 42% to VND 2 billion.
• For the first half of 2026, pre-tax loss was VND 88 billion versus a profit of tens of billions a year earlier.

What Happened

National Securities (VCI) released its Q2/2026 financial statements, revealing a significant deterioration in profitability. The company’s operating revenue halved to VND 81 billion, primarily due to a near-total evaporation of gains from FVTPL financial assets, which dropped from VND 96 billion to just VND 1 billion. In the year-ago quarter, VCI had recorded nearly VND 93 billion in unrealized gains from revaluation of these assets.

On the cost side, operating expenses surged 75% to VND 109 billion, mainly from a VND 104 billion loss on FVTPL assets, up 82% year-on-year. Financial costs also rose 32% to VND 73 billion, outpacing a 28% increase in financial income. As a result, VCI posted a pre-tax loss of VND 97 billion and a net loss of VND 98 billion for the quarter. Cumulatively, the first-half pre-tax loss reached VND 88 billion.

Market Context

VCI shares closed at VND 20,000 on July 20, 2026, on the HOSE exchange. The stock has been under pressure amid a broader downturn in the Vietnamese securities sector, as declining market volumes and volatility weigh on brokerage and proprietary trading income. VCI’s Q2 results mirror challenges faced by other securities firms, though the magnitude of its loss is notable. The company’s portfolio includes significant positions in stocks such as SJS (unrealized gain of VND 113 billion) and SAM (unrealized loss of VND 74 billion), as well as new investments in HPG, CTG, VPB, and others.

Strategic Significance

VCI’s Q2 loss underscores the vulnerability of its earnings to market swings, particularly from its proprietary trading book. The near-total collapse in FVTPL gains suggests that the company’s trading strategy was heavily reliant on market appreciation, which reversed in Q2. The increase in lending income (up 35%) provides some diversification, but the decline in core brokerage and advisory revenues indicates a loss of market share or reduced client activity. For long-term investors, the key concern is whether VCI can stabilize its trading performance and rebuild revenue streams amid a challenging operating environment.

What to Watch

• Q3/2026 earnings release to see if the loss narrows or widens.
• Changes in the composition and valuation of VCI’s FVTPL portfolio, especially the performance of large holdings like SJS and SAM.
• Trends in brokerage market share and advisory deal flow for VCI.
• Any management commentary on cost control measures or strategic shifts.
• Regulatory changes affecting securities firms’ proprietary trading limits or margin lending.