BSC’s Annual General Meeting of Shareholders 2024
BSC’s 2024 Annual General Meeting of Shareholders was held on the morning of April 23 in Hanoi. Photo: BTC
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Pre-tax profit plan of VND 550 billion is feasible
Reporting to the General Meeting of Shareholders, Mr. Nguyen Duy Vien – Member of the Board of Directors and General Director of BSC announced the preliminary business results for the first quarter of 2024. Operating revenue reached nearly VND 352 billion, an increase of 22% compared to the same period last year. Pre-tax profit was nearly VND 172 billion, an increase of 41% and achieved 31% of the annual plan.
“As in previous years, BSC‘s revenue is evenly distributed across many areas. The mainstays are still brokerage and margin lending (accounting for 60-70%); proprietary trading, capital investment, and IB account for the remaining 30-40%”, said Mr. Vien: “The possibility of BSC completing its pre-tax profit plan of VND 550 billion in 2024 is feasible, although market conditions are still being assessed”.
Commenting on the business performance of the BSC Ho Chi Minh City Branch, the company’s management said that this branch has been operating very effectively for many years, always contributing 30-40% to the company’s total profit. In the coming time, BSC will consider establishing new branches to expand the scope and scale of the company’s operations.
Reasons for no cash dividend after a record profitable year
In response to a shareholder’s question on why BSC is not paying a cash dividend despite its record profit in 2023, CEO Nguyen Duy Vien explained that shareholders’ benefits are not only derived from cash dividends, but also from changes in the value of the company’s shares on the stock market.
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“The form of dividend payment is also related to the capital utilization plan next year”, emphasized Mr. Vien. Currently, BSC‘s capital scale is not large (outside the top 20 companies on the market, equity capital is only in the top 15). Therefore, the form of dividend payment will take into account the interests of all parties, depending on market conditions and business performance in each year.
This year, BSC plans to issue 20.2 million shares to pay dividends for 2023, corresponding to a rate of 10%. If completed, BSC‘s charter capital is expected to increase to VND 2,230 billion.
“Not pursuing market share at all costs”
Regarding the trend of “zero fee” (zero brokerage commission) for brokerage clients, CEO Nguyen Duy Vien reiterated that BSC will not sacrifice profit in pursuit of market share. Instead, BSC will focus on improving advisory quality, service quality, and profit growth from brokerage.
Regarding the operation of the KRX system, Mr. Ngo Van Dung – Chairman of the Board of Directors of BSC said that the company has been preparing since the fourth quarter of 2023. Currently, BSC is ready to connect and operate with the new KRX system as soon as the authorities decide to deploy it (planned for May 2, 2024).
Regarding personnel, the BSC General Meeting of Shareholders voted to elect Ms. Hoang Thi Minh Ngoc as a member of the Board of Directors for the remaining term of 2021-2026, replacing Ms. Nguyen Thanh Huyen.
