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MANILA - COL Financial Group Inc. reported a double-digit growth in earnings in the first half, driven by the record performance of its Philippine operations.
In a statement, the online stockbroker said its consolidated net income increased by 14.7 percent to P209.10 million in the first six months of the year.
However, this was slower than the 66 percent growth in the same period last year because of the weakness in its Hong Kong unit and higher operating expenses.
COL's Philippine operations continued to post record numbers pushing consolidated revenues by 11 percent to P355.9 million. The Philippines already accounted for 91 percent of consolidated revenues in the first semester, up from 82 percent in 2011.
Commission revenues from the Philippines climbed 58.1 percent to P227.9 million largely driven by the sharp increase in the value of transactions in the Philippine Stock Exchange and the strong growth in its client base.
COL’s total client base increased to over 37,000 at end-June from 28,000 in 2011. Total value turnover in the local bourse also grew by 43.2 percent.
The online broker's market share in terms of volume of transactions went up to 23 percent in the first half from 19 percent last year, strengthening its position as the number one stockbroker in the PSE.
In value terms, COL’s rank also improved from eighth to seventh as it handled P84.6 billion worth of transactions. Its market share also increased by 20 basis points to 4.5 percent in the first half of 2012 from 4.3 percent in 2011.
“Last year, we took numerous steps to improve our level of service such as upgrading our computer systems to address the growing volume of transactions, making it easier for clients to transfer funds to their accounts, and making information more accessible to our clients by employing more communication channels and accommodating more attendees in our seminars. These efforts have clearly paid off given our growing number of clients and their expanding equity positions," said Dino Bate, COL president and chief executive officer.
Revenues from its Hong Kong operations fell by 48.2 percent to P33.6 million as market conditions continued to deteriorate, while operating expenses grew by 63.2 percent to P115.5 million as a result of its domestic expansion.
“Although the increase in expenses associated with our expansion program tempered our earnings growth, we believe that this is necessary to ensure the sustainability of our long-term organic growth. Ultimately, our profitability as a stock broker is only a consequence of our customers’ success," Bate said.
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