Viet Thanh Securities (VTS) Swings to Q3/2026 Pre-Tax Loss of VND 10B

Overview

Viet Thanh Securities (VTS) reported a pre-tax loss of nearly VND 10 billion for Q3/2026, reversing a VND 29 billion profit in the same period last year. Operating revenue fell 83% year-on-year to VND 7.2 billion, according to the company’s newly released financial statements. The result highlights growing divergence in Vietnam’s securities sector, where proprietary trading losses can quickly erode earnings.

Key Facts

• Q3/2026 operating revenue: VND 7.2 billion, down 83% from VND 42 billion in Q3/2025.
• Q3/2026 pre-tax loss: nearly VND 10 billion, versus a VND 29 billion pre-tax profit a year earlier.
• FVTPL gains: VND 5.3 billion, down 86% from VND 37.3 billion.
• Loss from sale of FVTPL financial assets: VND 11.8 billion, up from VND 8.2 billion.
• Operating expenses rose 36% to VND 12.2 billion, exceeding operating revenue.
• 9M/2026 operating revenue: VND 51.9 billion, down 39%; pre-tax loss: over VND 2 billion, versus a VND 41.3 billion profit in 9M/2025.
• Brokerage revenue: VND 254 million, down over 83% year-on-year.

What Happened

Viet Thanh Securities (VTS) published its Q3/2026 financial statements, disclosing a sharp deterioration in profitability. The company’s operating revenue fell to just over VND 7.2 billion, an 83% decline from VND 42 billion in the prior-year period. The primary driver was a collapse in proprietary trading income: gains from financial assets measured at fair value through profit or loss (FVTPL) dropped 86% to VND 5.3 billion, while losses from the sale of FVTPL assets widened to VND 11.8 billion from VND 8.2 billion. This pushed operating expenses up 36% to VND 12.2 billion, surpassing revenue and resulting in a pre-tax loss of nearly VND 10 billion.

Other business lines also weakened. Income from loans and receivables fell by more than half to VND 1.5 billion, and brokerage revenue plunged over 83% to VND 254 million. For the first nine months of 2026, VTS recorded operating revenue of VND 51.9 billion, down 39% year-on-year, and a pre-tax loss of over VND 2 billion, compared with a VND 41.3 billion profit in the same period of 2025. The filing does not disclose any one-off items or restructuring charges.

Market Context

VTS is listed on the UPCOM exchange, where liquidity and disclosure standards are generally lower than on HOSE or HNX. The stock last traded at VND 2,000 per share on August 19, 2026, near the bottom of its historical range. The Q3 loss underscores the vulnerability of small securities firms with concentrated proprietary trading books, especially amid volatile market conditions. While some peers like Public Vietnam Bank Securities (PBSV) reported profit growth, the sector is increasingly bifurcated between firms with diversified fee-based income and those reliant on trading gains.

Strategic Significance

For long-term investors, VTS’s Q3 result raises questions about the sustainability of its business model. The company’s heavy dependence on proprietary trading, which generated the bulk of profits in prior periods, has proven highly cyclical. With operating expenses now exceeding revenue, VTS faces pressure to cut costs or find new revenue sources. The securities industry in Vietnam is becoming more competitive, and smaller players without a clear niche may struggle to maintain profitability. The 9M loss also erodes retained earnings and could constrain future lending or investment activities.

What to Watch

• Q4/2026 earnings release, expected in January 2027, to see if proprietary trading losses continue.
• Any management guidance or restructuring plans, such as cost-cutting measures or changes to the proprietary trading strategy.
• Movements in the VN-Index and market liquidity, which heavily influence brokerage and margin lending revenues.
• Regulatory filings on any changes in ownership or capital, given the losses may affect capital adequacy.
• Peer results from other small securities firms on UPCOM to gauge whether VTS’s struggles are company-specific or sector-wide.