NATIONAL ECONOMICS UNIVERSITY

SCHOOL OF ADVANCED EDUCATIONAL PROGRAM

DEVELOPING THE
Presentation 2023

SECURITIES BROKERAGE
ACTIVITIES AT FPT
SECURITIES JOINT STOCK
COMPANY (FPTS)
Student : Le Thi Huong Giang
Class : Advanced Finance 61
Student’s ID : 11191408
Supervisor : Prof. Dr Nguyen Thanh Ha
Main RATIONALE

content Research methodology

s findings

Recommendations for FPTS

RATION
ALe
The stock market is associated with the development of the market
economy

Securities brokerage operations currently have a significant impact on

both the economy and the stock market.

Brokerage operations often account for 50% or more of the revenue

and profit structure of the majority of securities organizations

The direct competition between securities firms intensifies, FPTS has

battled for years to expand its market share, and brokerage for
institutional and overseas clients is still relatively constrained
2. RESEARCH
METHODOLOGY
Data method
- Annual report of FPT Securities Company over the years 2019 – 2022.
- Financial statements of FPT Securities Company over the years 2019 – 2022.
- Other figures from departments within the Company and competitors.
- Research works of agencies, institutes and universities; reports of banks,
financial institutions.
- Research works published in newspapers or specialized scientific journals and
related journals;

ANALYTICAL METHODS
- Comparative method
- Meta-analytic method
  Business performance

3.
FPT
 Performance of brokerage activities
at FPT Securities Join Stock
S

FINDIN Company
 Evaluate the effectiveness of

GS brokerage activities at FPT Securities

Join Stock Company
Business
Criteria 2019 2020 2021 2022
Revenue from operating and 415 415 1.388 851
fi nancial activities
Gain from fi nancial assets 59 (7,8) 340 (124)

performanc
recognized through
profi t/loss (FVTPL)
Interest on loans and 202 190 405 520
receivables

e
Revenue from securities 100 194 595 408
brokerage activities
Revenue from securities 0,2 0,6 5 4
Main contribution to revenue comes
investment consulting  
from 2 accounts: activities
Revenue from securities 9 9 10 10
 interest on loans and receivables depository activities
Revenue from fi nancial 17 18 28 32
 Revenue from brokerage operations consulting activities
Other operating income 0 0 0 0
Financial income 28 12 4 1
Operating and fi nancial 108 143 349 335
operating expenses
Securities company 52 53 60 77
management expenses
Other income 17 24 65 58
Other expenses 16 22 62 56
Other profi ts 0 2 3 2
Realized pre-tax 234 260 725 638
Business performance of
FPTS 1600
Operating revenue of FPTS 2019-2022 Return on Asset of FPTS 2019-2022
10,000 9,456 14%
1,383 9,000 13% 13%
1400 12%
8,000
1200 7,000 10%

Billion VND
6,000 8% 5,288
1000 8%
5%
Billion VND

850 5,000
800
4,000 3,395 6%

600 3,000 2,523 4%

386 403 2,000
400 846 2%
1,000 214 170 316
200 0 0%
2019 2020 2021 2022
0
2019 2020 2021 2022 LNST Tổng tài sản ROA

In 2022, all business outcomes showed negative growth due to several geopolitical
turbulences
 Operating revenue for FPTS would only be VND 850 billion in 2022, a 39% decrease from
the same time in 2021
 FPTS's total assets fell to only 5,288 billion dong (investors drastically cut the margin ratio)
Performance of brokerage activities at
FPTS
BROKERAGE DEPARTMET PERSONNEL STRUCTURE  With 1-2 recruitments each year, the
organization regularly hires and

Amount of people 236 trains new employees

 The business has a decent policy for
Percentage of university degree or new hires that helps them get past
100%
higher their first challenges and eventually
develop a steady client base
The average age 27  To raise the professional
qualifications of the personnel,
Male/Female 65%/35% regular training and operational
training sessions are also
(Source: Human Resources Department – FPTS)
undertaken
Performance of brokerage activities at
FPTS CUSTOMER CARE AND SUPPORT SERVICES IN
SECURITIES BROKERAGE ACTIVITIES

Securities custody Online trading

service service

Advances for selling

securities and
Odd lot trading
advances for
dividends
Performance of brokerage activities at
FPTS
Securities brokerage process
Advice
on Get
Finding Find out suitable System feedback
customers the needs products Support from
and customers
stocks
(Source: FPTS)
Performance of brokerage activities at
FPTS
Analysis of the development of brokerage activities at FPTS in breadth
Ratio of individual and institutional accounts in 2019 – 2022
Number of customer accounts registered for securities
brokerage at FPTS
2019 2020 2021 9T2022
24%  
250000.000 25%
Amounts Amounts
Criteria % % Amounts % Amounts %
208063.000
200000.000 20%    
186703.000

157849.000
150000.000 142028.000 15% FPTS 10.884 100% 15.944 100% 29.189 100% 21.956 100%
18% 14%

100000.000 10%

8% Individual 10.873 99,9% 15.926 99,89% 29.168 99,93% 21.904 99,67%

50000.000 5%
28595.000
20680.000
9995.000
.000 0%
2019 2020 2021 2022 Institutions 11 0,1% 18 0,11% 21 0,07% 52 0,23%

Number of underlying securities accounts

Number of Accounts of Derivatives Securities
Growth rate of total accounts (Source: FPT Securities Joint Stock Company, 2019 – 2022)
Performance of brokerage activities at
FPTS
Analysis of the development of brokerage activities at FPTS in breadth

Transaction value growth of FPTS in the period of

2019 - 2022
1000 250%
904
900 846
214%
800 200%

700

600 150%
Billion VND

500

400 100%
91%
300 269

200 50%
141
100
7%
0 0%
2019 2020 2021 2022

Average transaction value Transaction value growth

(Source: FPT Securities Joint Stock Company, 2019 – 2022)

Performance of brokerage activities at
FPTS
Analysis of the development of brokerage activities at the company in breadth
FPTS's stock brokerage market share on HOSE

STT 2019 2020 2021

Securities market Securities market Securities market
Company share (%) Company share (%) Company share (%)
1 SSI 13.96% SSI 12.33% VPS 16.14%
2 HSC 10.54% HSC 8.66% SSI 11.05%
3 VCSC 8.19% VPS 8.22% VNDS 7.46%
4 VNDS 6.81% VCSC 7.69% HSC 6.71%
5 MBS 4.77% VNDS 7.19% VCSC 4.87%
6 MAS 4.47% MBS 4.79% TCBS 4.57%
7 VPS 3.94% MAS 4.73% MAS 4.44%
8 BVSC 3.75% FPTS 3.76% MBS 4.27%
9 BOS 3.13% KIS 3.60% FPTS 3.38%
10 KIS 3.08% BSC 3.50% KIS 2.89%
(Source: HoSE annual report 2019 - 2021)
Performance of brokerage activities at
FPTS
Analysis of the development of brokerage activities at FPTS
FPTS's stock brokerage market share on HNX

STT 2019 2020 2021

Securities market Securities market Securities market
Company share (%) Company share (%) Company share (%)
1 SSI 13.96% SSI 12.33% VPS 16.14%
2 HSC 10.54% HSC 8.66% SSI 11.05%
3 VCSC 8.19% VPS 8.22% VNDS 7.46%
4 VNDS 6.81% VCSC 7.69% HSC 6.71%
5 MBS 4.77% VNDS 7.19% VCSC 4.87%
6 MAS 4.47% MBS 4.79% TCBS 4.57%
7 VPS 3.94% MAS 4.73% MAS 4.44%
8 BVSC 3.75% FPTS 3.76% MBS 4.27%
9 BOS 3.13% KIS 3.60% FPTS 3.38%
10 KIS 3.08% BSC 3.50% KIS 2.89%
(Source: HNX annual report 2019 - 2021)
Performance of brokerage activities at
FPTS
Analysis of the development of brokerage activities at FPTS in depth

Growth in revenue and gross profit from securities brokerage activities of FPTS in 2019 – 2022
Unit: Billion Dong

Revenue Increase/ Gross profit Increase/ Gross profit margin

Decrease Decrease

2019 100   34   33,6%

2020 194 + 94% 92 +171% 47,2%

2021 595 + 206% 338 +267% 56,8%

2022 408 -31% 191 -43% 46,8%

 
(Source: Financial Statement FPTS 2019 – 2022
Performance of brokerage activities at
FPTS
Analysis of the development of brokerage activities at the FPTS in depth

The proportion of revenue from securities brokerage activities of FPTS

in 2019 – 2022
Unit: Billion Dong
The proportion of revenue from
Revenue Net Revenue Gross profit Proportion
securities brokerage activities accounts
from SBA margin
for a relatively large proportion of the
total revenue of FPT Securities Joint Stock
2019 100 386 72,2% 25,90% Company, but it is not stable.

2020 194 403 64,5% 46,76% For a broader perspective, the profit
margin of all FPTS operations over the
2021 595 1.388 74,8% 42,88%
last three years has increased

2022 408 850 77,8% 48,00% significantly and has remained

remarkably consistent between 64% and
78%.
(Source: Financial Statement FPTS 2019 – 2022
ACHIEVEM
ENT
1. The number of new account
openings increased rapidly.

In the previous ten years, FPTS

2. has nearly always been among

the TOP 10 securities businesses
with the biggest market share.

3.
Even with the COVID-19 pandemic, sales
and gross profit increased significantly in
2020 and 2021.
LIMITATIO
Ns
1. There are still extremely few
accounts for institutional and
overseas securities

2. The rise of transaction value is

below market average

3. Market share hasn't changed all that much

 RECOMMENDATIO
NS FOR FPTS
01 04
Improve the quality of human resources Network expansion
Improving mechanism of personnel recruitment and
training
Organize and manage a team of brokers effectively 05
 Building an eff ective salary and bonus system Improve the quality of
02 customer services
Complete and improve the system of physical
and technical facilities
06
03 Promote marketing activities,
Improve the fi nancial capacity of the company build brand
Thank you!