BUSINESS UNITS 
SECURITIES SERVICES
 
2018 HIGHLIGTS
 
 SSI continues to affirm its No. 1 position in stock brokerage and fund certificate market share on both HOSE and HNX, specifically as follows: market share at HOSE reached 18.70% or an increase of 2.5% YoY; market share on HNX reached 11.89%, up by 0.49% YoY. Combining 2 Stock Exchanges, SSI’s market share remained at the top of the market, reaching 17.44% - up by 2.18% YoY; in particular, brokerage market share for foreign clients reached 25.25%, increasing by more than 20%.
 
 SSI Securities Services recorded impressive growth in business performance: revenue increased by 42.6%, profit increased by 16.2% compared to 2017.
 
Margin lending balance increased from VND 5,764 billion at the beginning of the year to VND 5,966 billion at the end of the year, topping the market in terms of size, with a record level of over VND 7,043 billion at some time during the year. Other business targets of Securities Services all have been successfully achieved such as the growth in the number of new accounts and investors’ management accounts in parallel with the market growth.   
 
SSI continued to win most prestigious team and individual awards from Asiamoney - the regional top prestigious magazine. Besides, SSI also won the “Best Brokerage” award by The Asset and “Best Retail Brokerage in Vietnam” awarded by Alpha Southeast Asia. 
2018 PERFORMANCE
 
In 2018, amidst market volatility and fierce competition environment, SSI still managed to succeed, as evidenced by the growth in market share, revenue, profit and human resource development, further asserting its No. 1 position in Vietnam. 
 
After a period of preparation, SSI Securities Services officially separated its management structure into two specialized Units: Retail Brokerage and Institutional Brokerage for better specialization and improved service quality for customers. In particular, Retail Brokerage has employed 87 additional brokers - bringing the total number of brokers to 566 as at the end of 2018, and opened two new Transaction Offices: Cach Mang Thang Tam and Nguyen Huu Canh Transaction Offices - raising the total number to 17 Branches/Transaction Offices and project teams. Institutional Brokerage has also recruited many highly qualified personnel and appointed 02 Co-Managing Director - 01 American one with extensive experience in the international financial market, and 01 Vietnamese one with over 10 years of experience at SSI and insight of the local market and customers. 
 
The success of SSI can be attributed to close and effective coordination between departments and two business units of Retail Brokerage and Institutional Brokerage. Retail Brokerage remains consistent with the customer-centric and result-oriented strategy in all activities. These achievements, in their turn, will drive each individual to strive to achieve greater goals in 2019. Institutional Brokerage continues to pursue its long-term development strategy towards providing top quality products and services to customers. Highly qualified and rational organizational structure is gradually taking shape and develops, promising a stronger development in the future with the determination to resume SSI’s No. 1 position in the brokerage market share for foreign institutional clients. Operation Departments always accompany and support Business Units to complete transaction procedures in accordance with policies and regulations.
 
Here are some highlights of SSI Securities Services’ achievements in 2018:
 
Largest market share

 

 

Brokerage market share continues to affirm the number 1 position in the market for stock brokerage and fund certificates on both HOSE and HNX, representing 17.44% of the whole market - up by 2.18% YoY. 


In particular, market share at HOSE reached 18.70%, up by 2.45% YoY.

 

The market share at HNX reached 11.89%, up by 0.49% YoY.

 

 

Significant growth in revenue and profit


Revenue from Securities Services continued to grow strongly and steadily over the years. Total revenues in 2018 reached VND 1,893.6 billion, increasing by 42.6% YoY. In particular, revenues from Retail Brokerage mainly come from brokerage fees and revenue from financial products (especially margin lending). For Institutional Brokerage, revenue comes from brokerage fees inside and outside the Stock Exchanges, from consulting contracts, investment advisory, investor relations advisory, and cross-sales with other businesses at SSI. 

 

Along with the revenue growth, the profitability of SSI Securities Services in 2018 also increased sharply to VND 761.4 billion, up by 16.2% YoY. 

 

 

Strong growth of customer base and broker network


As at the end of 2018, SSI managed over 153,000 accounts, accounting for 7% of the total market. Among these, 26,919 new accounts were opened in 2018. The strong growth in the number of accounts represents a diversified customer development strategy and a targeted market with many customer segments such as: corporate customers who are listed companies, investment funds, domestic fund management companies; retail customers with regular transactions; foreign institutional customers from Hong Kong, Singapore, USA, Japan, Korea, Thailand and Europe.

 

Taking advantage of market development opportunities, SSI continues to expand its network in key locations in Ho Chi Minh City. In 2018, there are 02 new Transaction Offices, namely Cach Mang Thang Tam Transaction Office and Nguyen Huu Canh Transaction Office. The company has also renovated and upgraded transaction facilities across the system, ensuring professional reputation of SSI and facilitating transaction conditions for investors. 

 
Besides, to best serve the customers, SSI adopts a strategy to invest in competency of brokers. In 2018, the number of brokers increased from 479 to 566 brokers by the end of 2018 with a rigorous recruitment and evaluation process, focusing on ethics, professionalism, passion and aspiration work. Along with recruitment, training activities are also focused and implemented periodically at all branches/transaction offices to develop brokers into professional and dedicated investment advisors. 

 

Improving service quality & developing new products

 

In 2018, SSI officially launched and operated a new core trading system for the stock market to better meet the needs of customers by providing modern technology, good connectivity, combined with business process automation, management of diverse products and high stability. The iBoard price board uses the latest technology for fast and accurate tracking of prices and customer transactions. 


The company also upgrades Web Trading for derivatives market, aiming for 3 important focal points: Speed, Conditional orders and Utilities. Specifically, SSI provides 6 types of conditional orders to help investors apply flexible and diverse applications to create investment advantages, while managing risks of derivative transactions. Features, utilities, daily open and close position reports, historical close position reports, cash statements, profit-loss management, money transfers, etc. are also completed to help investors track and manage their account. 


Also in 2018, SSI successfully developed a payment system connected with major banks such as Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), Joint Stock Commercial Bank for Foreign Trade of Vietnam (VCB), Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank), Asia Commercial Joint Stock Bank (ACB), Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) to facilitate fast and convenient cash transfer of customers. The company is also one of the first securities companies in Vietnam to coordinate with domestic and foreign depository banks to successfully implement business processes, support derivative transactions for foreign institutional customers. 


Regard to Institutional Brokerage, SSI expanded its global partner network through securities companies and international banks to provide market information, as well as introduce investment opportunities for international customers. In 2018 only, the broker team conducted more than 2,000 meetings with international investment funds, organized 20 marketing trips to traditional financial markets such as the US, UK, Singapore, Hong Kong, South Korea, Japan and Thailand, co-organized 2 large investment conferences with Citi Group and Goldman Sachs to introduce nearly 40 Vietnamese enterprises to the world.


In addition, the Company continued to improve, automate and optimize business processes, and look for regional prestigious partners while adopting the customer relationship management (CRM) and quality management systems to further improve customer services. SSI has also completed the preparation of the system and business processes for covered warrant products, making it ready to supply such products to investors in 2019 according to the schedule of HOSE.