Dear Shareholders, Clients, Partners of RongViet Securities,
In 2022, Vietnam's macro-economy achieved many positive results with high GDP growth, continued good export growth, controlled inflation, and stable exchange rate. However, the unstable world situation comes from the military conflict between Russia and Ukraine, China's Zero-Covid policy, the sudden increase in inflation in the US and other major economies after a long time of monetary easing led to the US Federal Reserve (FED) and central banks continuously raising interest rates to control inflation, putting pressure on the domestic interest rate level, culminating in two consecutive interest rate hikes in September 2022 of the State Bank with the prolonged tightening monetary policy with the goal of stabilizing the exchange rate. In addition, the handling of violations related to the corporate bond market, the stock market and measures to restructure the financial market in the immediate future have seriously affected the corporate bond market and the Vietnamese stock market.
By the end of 2022, the VN-Index reached 1,007.09 points, down 32.8% compared to the beginning of the year, the strongest decrease since the 2008 financial crisis. Market liquidity recorded a downtrend with the average transaction value per session reaching more than VND 20 trillion, down about 25% compared to 2021.
In the context of many adverse market fluctuations, RongViet Securities' business results in 2022 fell short of expectations. The total consolidated revenue in 2022 of RongViet Securities is VND 860.9 billion, down 18.3% compared to 2021 and completing 72% of the year plan. Total consolidated expenses were recorded at VND 1,013.8 billion, up 95% compared to 2021, of which a large proportion was provision expenses for stock investment activities. RongViet Securities' consolidated profit after tax was negative VND 114.98 billion. By the end of 2022, RongViet Securities' financial safety ratio reached 433.6% (much higher than the required level of 180%). The debt-to-equity ratio is at a low level, 1.04 times, ensuring a safe financial structure in the context of complicated market fluctuations.
By sticking to the development direction, RongViet Securities has completed two important groups of goals: enhancing the foundation and expanding the scale of operations. We have completed the plan to increase charter capital to VND 2,100 billion and opened 3 more branches in Dong Nai, Vung Tau and Binh Duong. In 2022, RongViet Securities has continued to promote investing, expanding and diversifying the system of products and services associated with the implementation of many important digitalization projects. It can be affirmed that, despite facing many difficulties, RongViet Securities has firmly overcome and always maintained stability and safety in all activities. The foundation of RongViet Securities continues to be firmly consolidated, creating a premise for new development steps.
Ladies and gentlemen,
Entering 2023, in the context that the domestic and world economies continue to face many difficulties. Difficult factors will certainly negatively affect Vietnam's stock market in the first half of 2023. However, with interest rates likely at a peak and stock prices at a bottom, we expect that when there are signals of policy change (expected from Q3/2023), Vietnam's stock market can recover and become active again.
Vietnam's political, economic and social environment is changing, and in the short term, it is facing many difficulties, instability and risks, which requires RongViet Securities to be cautious and pay more attention to the stability and safety in business activities. Even so, the growth prospects of the Vietnamese economy and stock market remain very positive in the long term. From that point of view, in 2023, RongViet Securities sets its operational orientation as "Adapting to the new age - Advancing with solid pace". In 2023, RongViet Securities will continue to focus resources on promoting digital transformation projects associated with diversifying, improving the quality and utility of products and services to better serve clients’ needs. We will continue to strengthen and enhance the staff’s quality, strive to stabilize capital to ensure business activities, and improve risk management capacity. In addition, we will focus more on taking care of existing clients and developing new clients, promoting the business activities of branches in order to more effectively exploit the advantages of the operating network in economically developed regions.
We believe that, with a solid foundation that has been built over more than 16 years of establishment and development, RongViet Securities collective will firmly overcome the current temporary difficult period, effectively grasp and exploit business opportunities to grow stronger, more effective in 2023 and the following years, towards the vision of making RongViet Securities one of the leading, most modern and effective financial institutions in Vietnam by 2030.
On behalf of the Board of Directors and all members of RongViet Securities, I would like to thank our Shareholders, Clients, Partners and Management agencies for always trusting, accompanying and supporting the development of RongViet Securities during the past time, whether the market is favorable or difficult. We respectfully acknowledge your precious sentiments and commit to making more efforts in the coming period, in order to bring better values to our clients, partners, shareholders, employees and community, towards a prosperous future. To achieve that, we hope to continue to receive the trust, companionship and support of all of you.
Wishing you good health, success, prosperity and happiness.
Sincerely thanks.
Chairman
Nguyen Mien Tuan
