CitisecOnline books P209 M profit in H1

MANILA, Philippines - Stock brokerage firm CitisecOnline (COL) grew its first semester consolidated net profit 14.7 percent to P209.1 million, benefiting from a resurgent stock market that hit new multiple highs on account of sound macroeconomic fundamentals and a predominantly low interest rate environment.

In a statement, COL said total revenues went up 11 percent to P355.9 million, mainly driven by the 58.1 percent rise in commission revenues from its Philippine operations to P227.9 million.

COL expanded its client base by 24 percent to over 37,000 from 28,000 as of end-2011. As a result, client equity increased to P22.1 billion as of June 30 this year from P16.5 billion in end-December last year.

The Philippines already accounted for 91 percent of aggregate earnings in the first half, up from 82 percent for the whole of 2011.

COL reported that its volume of transactions rose 23 percent, strengthening its position as the number one stock broker in the Philippine Stock Exchange (PSE). In value terms, the company’s ranking also improved from eighth to seventh with a total of P84.6 billion worth of trades executed.

Its market share also increased by 20 basis points to 4.5 percent from 4.3 percent in 2011.

The sluggish output from its overseas unit in Hong Kong, however, clipped the group’s robust Philippine operations.

Revenues from Hong Kong fell 48.2 percent to P33.6 million as market conditions continued to deteriorate.

COL said operating expenses in the Philippines jumped 63.2 percent to P115.5 million as it took numerous steps to improve its level of service such as upgrading 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 clients by employing more communication channels.

 “These efforts have clearly paid off given our growing number of clients and their expanding equity positions”, said COL president and chief executive officer Dino Bate.

“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,” he added.