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The Brokerage Segment’s Thin Margins and Surging Provision Costs: A Look at FPTS’ 8% Drop in Q1 Net Profit

23 April, 2025

FPTS’ Q1 2025 Business Results

Unit: Billion VND

FPTS reported total revenue from business and financial activities (realized) of nearly VND 314 billion, up 4% compared to the same period last year and achieving 31% of the yearly plan of VND 1,000 billion. However, the realized pre-tax profit was just over VND 100 billion, down 19% and meeting 20% of the target of VND 500 billion for the whole year.

It can be seen that despite a 34% growth in profit from loans, reaching nearly VND 174 billion, the company also recorded VND 77 billion in financial asset impairment provisions, handling bad debt losses, and financial asset depreciation and borrowing costs for loans, double that of the same period. In addition, brokerage activities also showed a decline with a meager profit of over VND 3 billion, equivalent to 10% compared to the previous year.

Finally, the company’s net profit was nearly VND 153 billion, down 8%.

As of March 31, 2025, FPTS’ total assets exceeded VND 10,706 billion, up 10% from the beginning of the year. The largest item was loan balance of nearly VND 7,612 billion, up 8%, of which more than VND 7,000 billion was for margin lending.

Another item with a size of over VND 1,000 billion is the fair value of financial assets FVTPL of nearly VND 2,065 billion, up 8%, mainly invested in fixed-term deposits, deposit certificates of over VND 839 billion; government bonds and bonds of credit institutions nearly VND 651 billion; listed and traded stocks nearly VND 573 billion, with the investment value in MSH shares of May Song Hong Joint Stock Company reaching nearly VND 572 billion, 42 times the purchase price.

At the Annual General Meeting of Shareholders held on the afternoon of April 1, 2025, CEO Nguyen Diep Tung stated that the company has no intention of taking profits on the textile and garment industry stock.

“FPTS does not focus on proprietary trading on the exchange, as this would conflict with the interests of our clients. FPTS only invests directly in unlisted companies and accompanies them, as in the case of MSH. FPTS has been with MSH for over a decade and we have not discussed exiting, as long as the collaboration remains beneficial for shareholders.”

“However, I cannot confirm that we will not take profits in 2025 because if anything changes, we must adapt and take action, not stand still. Therefore, I can only say that FPTS has no plan to exit at this time” – FPTS’ CEO shared.

In terms of capital sources, FPTS’ debt was nearly VND 6,088 billion, up 11% from the beginning of the year and accounting for 57%. The company’s major lending partners include VIB, MSB, VPBank, Vietcombank, and VietinBank.

Huy Khai

– 10:41 19/04/2025