Securities firms face diverging profits in Q3 amid weak liquidity

In the third quarter of 2026, securities firms are experiencing varying profits, with some reporting significant declines due to weak market liquidity. MB Securities Corporation, for instance, reported an after-tax profit of approximately $12.6 million, a 5% decrease compared to the previous year. Gains from financial assets at fair value through profit or loss rose 146% year-on-year, but losses from these assets surged to $19.2 million, negatively impacting overall performance. Revenue from securities brokerage fell 65% to $5.1 million.

In contrast, HVS Vietnam Securities Corporation saw robust growth in both revenue and after-tax profit, with after-tax profit reaching $84,000, or 3.6 times the figure from the previous year. The main revenue contributor was interest income from held-to-maturity investments, consisting entirely of deposit contracts with terms over three months.

BIS Securities Corporation also reported a significant improvement, with after-tax profit increasing by over $228,000, while still posting a loss of about $60,000. BIS's revenue surged 423% to $636,000, driven by $424,000 in revenue from financial advisory services.

Analysts predict that the securities sector's Q3 business results will likely decline on-year due to high liquidity and trading value in the previous quarter, which boosted brokerage income and made comparisons more challenging. Market liquidity has fallen by 55-60% on-year, and market volatility is expected to decrease margin lending balances.

However, lending balances are still projected to grow on-year, supported by additional capital raised through capital-raising exercises. Leading securities companies may report weaker Q3 results than the previous year due to declining brokerage revenue in line with market liquidity. Small and medium-sized brokerages could experience steeper declines due to their strong proprietary trading profits in the previous quarter.