Brokers — 2Q20 preview

VN Brokers — 2Q20 preview

Sector earnings to bounce sharply in 2Q20
That rarest of things – an earnings recovery story in 2Q20. Brokers may be uniquely positioned for a strong bounce in earnings given 1) a low QoQ and YoY basis for comparison, 2) a recovery in proprietary trading results (in particular at SSI) given the VNI’s +25% increase in 2Q20, and 3) evidence of a strong increase in retail investor activity during the quarter, including the sharp
increase in the number of securities trading accounts in March-June, which implies continued growth in margin lending.