service was reasonable, brokerage service’s CRR was quite high and alarming In detailed, the company realized an upsurge in brokerage expenses from VND 304,583,778,078 in 2020 to nearly triple the amo.
service was reasonable, brokerage service’s CRR was quite high and alarming In detailed, the company realized an upsurge in brokerage expenses from VND 304,583,778,078 in 2020 to nearly triple the amount at VND 890,023,647,172 in 2021 This is the highest expenses recorded in the operating expenses of VNDIRECT last year, may posing a concern in the process of managing costs and expenses of VNDIRECT However, this rise in brokerage expenses was still lower than the rise in revenue: brokerage expenses rose by 2.92 times, while brokerage revenue rose by 3.38 times This shows an effort of VNDIRECT to control its expense at a moderate level to ensure business growth while maintain positive profit Expenses for custodian activities faced the same situation as brokerage expenses The expense figure went from VND 8,264,053,624 to VND 18,517,082,913, not as significant as other operating expenses but remained noticeable CRR of custodian expenses was 124%, meaning expenses exceeded revenue This is not a main service performed by VNDIRECT; therefore, the situation was not alerting, however, it is still something worth consideration from the Board of Director 2.2.1 Financial Leverage: In 2021, the charter capital was increased to VND 4,349 billion, mainly by issuing stocks It increased its equity by 2.5 times to reach VND 9,822 billion, becoming the securities company with the largest capital in the market This paved the way for the development of margin lending services as now the company has sufficient capital to supply margin loans, therefore increasing its revenue and contribution to the overall revenue This can be seen in VNDIRECT 2021 balance sheet, in which the total asset landed at more than VND 37 trillion, of which the loan balance of margin landing increased to 15,474 billion VNDIRECT has been using debt financing extensively for the past few years to boost its business performance In 2020 and 2021, total liabilities of the company went up