CitisecOnline posts 41% profit hike

Amid sluggish market conditions, online stockbrokerage firm CitisecOnline reported a 41-percent growth in net earnings in the first quarter of the year on the back of higher revenue contributions from its wholly-owned Hong Kong unit.

Net revenues amounted to P62.6 million, up 21 percent from the previous level of P51.7 million.

In a statement, CitisecOnline president Conrado Bate said CitisecOnline.com Hong Kong Ltd. accounted for 52 percent of total revenues from 43 percent the same period a year earlier.

“Our Hong Kong customers remained actively engaged with managing their portfolios due to the high volatility and better liquidity of the Hong Kong market,” Bate said.

Revenues from commissions in Hong Kong grew 74 percent from P20.2 million to P35.2 million. 

On the other hand, commission revenues in the Philippines dropped 11 percent from P16.4 million to P14.6 million. The decline, however, was offset by continued utilization of CitisecOnline’s margin loan product called COL X2.  Interest income jumped by over 118 percent to P7 million from P3.2 million.

As the Philippine market fell by almost 18 percent in the first quarter,  CitisecOnline focused more on the needs of its customers by providing market briefings, seminars as well as round table discussions with its customers in Manila and in provincial areas.

Bate stressed that it was imperative to keep visible and offer advice during difficult times when customers need it most.

Customer acquisitions grew 149 percent year-on-year, coming from a low base. Account acquisition, however, increased only six percent from the last quarter of 2007 to the first quarter of 2008 due to the lack of urgency to invest in the market during uncertain market conditions.