VN banks team up with securities firms

VPBank was once the largest shareholder in VPS Securities JSC, the company that now has the largest stock brokerage market share in Vietnam. However, in 2016, VPBank divested from the company and is no longer involved in the securities industry. VPS TITLES

The strong development of the stock market in Vietnam, with the increase of retail investors and the demand for financial investments, has prompted many banks to cooperate with securities houses and fund management companies to add more securities products. cross-sell.

This is seen as a solution for the parties in order to optimally exploit all potentials and increase competitiveness and value.

Saigon Commercial Joint Stock Bank (SCB) has just signed a cooperation agreement with Tan Viet Fund Management JSC (TVFM) in the field of product service provision, based on the principle of priority commitment to use the products and services on the other, guaranteeing effective competition in terms of quality and cost.

Accordingly, SCB is TVFM’s preferred partner for the provision of products and services in capital raising transactions, domestic and foreign financial arrangements, investment transactions and investment cooperation.

The bank also considers TVFM to be the preferred partner for the provision of investment, investment and asset management services for SCB and its clients.

At the same time, TVFM also signed a cooperation agreement with Tan Viet Securities JSC (TVSI) for the cross-selling of traditional products. As a next step, the parties will proceed with the development of specialized products in accordance with the commercial orientations of TVSI, SCB and TVFM.

Nguyen Cuu Tinh, deputy general manager of SCB’s personal finance services division, said that through the cooperation agreement, the bank will create premium product packages for investors and standardize the investment process. client. Thus, he can form accumulation packages with high interest rates and exceptional efficiency, promising to provide customers with impressive differences in products and services with stable profitability.

Previously, HSBC Vietnam also confirmed a strategic cooperation relationship with VinaCapital Fund Management SJC to connect retail investors to VinaCapital’s fund certificates. Initially, the cooperation aims to support HSBC Premier customers, opening up many opportunities for HSBC customers to access investment products.

Pramoth Rajendran, Country Head of Wealth Management and Personal Banking, HSBC Vietnam, said it is the right time for HSBC Vietnam to introduce wealth management products as customer demands are higher.

Through strategic cooperation with its long-time partner VinaCapital, the bank wants to present clients with another investment channel to help increase assets. This is in line with HSBC’s strategy to open up new opportunities for customers, as well as supporting the development of the Vietnamese market.

Last month, SSI Securities Corp (SSI) also announced that it had successfully signed a loan agreement with a limit of 10 trillion dong ($437.1 million) with the Hanoi branch of Vietinbank.

This is SSI’s largest line of credit agreement to date with a joint-stock commercial bank in Vietnam, promising to open a more comprehensive direction of cooperation in the future between the two financial institutions.

Another deal that has recently caught the eye is VPBank’s return to the securities business by acquiring over 97% of ASC Securities Corp and changing its name to VPBank Securities Co.

In the past, VPBank was the largest shareholder of VPS Securities JSC, the company now holding the largest share of the stock brokerage market. However, in 2016, VPBank divested from the company and is no longer involved in the securities industry.

As this has been a traditional business of banks for a long time, it is understandable that many commercial banks are expanding cooperation to promote investment development.

The equity investment structure of banks includes securities, which are mainly debt securities, including corporate bonds, government bonds and credit institution bonds. Currently, these services are mainly provided by title companies, which are subsidiaries or strategic partners.

The fourth quarter 2021 financial statements and 2021 business results of listed banks showed that investment securities services bring significant revenue to many banks, especially those that own securities companies.

For example, last year Techcombank’s fees from investment banking (IB), the largest component of service business revenue, recorded 3.6 trillion dong, up 32.8 percent. year-on-year. Its bond distribution fees increased 57.4% and other IB services fees increased 66.7% in 2021 as its Techcom Securities JSC (TCBS) continued to provide many new products and services for serving a larger group of customers which grew by 30%.

In 2021, securities trading, equity investment and long-term capital provision also helped MBBank earn nearly 1.7 trillion VND, up 75.3%.


Comments are closed.