The board of management’s report on business results

 

2016 BUSINESS PERFORMANCE

 

In 2016, SSI’s consolidated revenue exceeded the revenue target set out in the business plan by 60%, reaching VND 2,312 billion, or a growth of 28% compared to 2015. 2016 consolidated profit before tax reached VND 1,056.8 billion, exceeding the target by 11.24%.

 

 

Revenue from Securities Services accounted for 37.5% of the total revenue, achieving approximately VND 868 billion, 42.3% higher than 2015. This mainly resulted from a remarkable growth of brokerage fees and revenue from financial products. The two groups made up more than 90% of total revenue of the Securities Services in 2016. In 2016, SSI continued to maintain the No. 1 position on both exchanges of HOSE and HNX, with the brokerage market shares of 13.69% and 11.03% respectively, increasing the gap with the second rank compared to 2015. This result shows SSI’s serious investment in improving product & service quality and diversifying investment analysis and recommendation reports, as well as the development of human resources with high qualifications and good professional ethics. Margin lending activity also experienced a significant growth with average margin balance of over VND 3,890 billion in 2016, maintaining the highest level in the market and with updated and appropriate margin stock list. By late 2016, SSI managed more than 100,000 client accounts.

 

Principal Investment revenue was VND 934 billion, accounting for 40.4% of the total revenue of the Company, a rise of 8.4% compared to 2015. With total 2016 market value of investment up to VND 4,176 billion, at the end of 2016, SSI continued its effective value investment strategy, accompanying companies in their endeavors. At the year-end, SSI had 3 associates, namely The PAN Group JSC. (PAN - HOSE), Dong Nai Port JSC. (PDN - HOSE), and Vietnam Fumigation JSC. (VFG - HOSE), all of which achieved positive business performance for the last year.

 

Investment Banking regained its leading position by a series of successful deals in 2016 totaling up to hundreds of millions of US dollars, such as advisory service for offering of 78.38 million share of Vietnam Dairy Products Joint Stock Company (VNM – HOSE), advisory service on the sale of shares of Hau Giang Pharmaceutical Joint Stock Company (DHG – HOSE) and private offering advisory service for No Va Land Investment Group Corporation (NVL – HOSE) under the book building method. Revenue from these services hit its highest level in recent years, reaching VND 106.6 billion, an increase of 145% compared to 2015.

 

2016 continued to witness a successful year of SSI Asset Management Company Limited (SSIAM) in raising capital from foreign investors, increasing the total assets under SSIAM’s management to over VND 7,913 billion, up 27.4% against 2015. On the other hand, all of the funds under SSIAM's management achieved superior rates of returns compared to the VN-Index. The Company’s 2016 revenue rose by 137% compared to 2015, reaching VND 32.5 billion. 

 

Treasury successfully completed its assigned tasks in 2016 in terms of revenue, increasing the total assets to more than VND 13,000 billion, 9% higher than 2015, ensuring the highest level of liquidity for customers and effectively supporting the capital needs of other Business Units, successfully issuing corporate bonds with interest rates equivalent to those of commercial banks in the same period, enhancing the image and reputation of SSI as one of the most prestigious intermediary financial institutions in the securities market in particular and in the financial market in general. Revenue from the Treasury in 2016 reached VND 366 billion, contributing approximately 16% to the Company’s total revenue and growing by 37,3% compared to the previous corresponding period.    

 

Details of business performance by sector will be presented in later sections of the report.

 

2016 FINANCIAL PERFORMANCE

 

In 2016, SSI’s total consolidated assets saw a 9% increase to approximately VND 13,228 billion compared to 2015 and its owners’ equity reached VND 7,152.6 billion. Total assets increased thanks to the increase in bank loans in order to support two business activities: Margin lending and Treasury

 

 

 

Financial Highlights

 

 

 

 

 

(*) 2015 data was restated and amended in accordance with the new accounting guidance for securities companies, following Circular 201/2014/TT-BTC and Circular 334/2016/TT-BTC, which amend, supplement and replacing Annex 02 and 04 of Circular 210/2014/TT-BTC

 

For more details, please see Note 4.1 and 44.7 in SSI 2016 Consolidated Financial Report