COL Financial profits rise 63% in H1

MANILA, Philippines - Leading online stockbroker COL Financial Group Inc. reported further gains in its first half profits as more investors were encouraged by the local bourse’s bull run.

COL Financial disclosed that its net income rose 63 percent to P222.2 million in the first semester.

The latest data showed another record first semester for the brokerage firm, said COL Financial president Dino Bate.

Revenues jumped nearly a quarter to P443.4 million “driven by the 29.5-percent increase in commissions to P338.6 million and 11.2-percent improvement in interest income to P102.9 million.”

“The strong performance of the market and the accelerating growth of COL Financial’s client base were largely responsible for its record performance,” Bate said.

Since ending 2012 at 5,812.73, the benchmark Philippine Stock Exchange (PSE) index has posted 31 all-time highs this year, with the last at 7,392.20 on May 15. The bellwether index then corrected en route to ending the first half with a still modest gain at 6,465.28.

In the first semester, value turnover in the PSE surged 48.2 percent as foreign funds flowed into the country.

The bull run helped COL Financial grow its client base by almost half to 68,481 as of end-June from 46,536 last December

“Client equity handled by COL Financial also increased significantly, exceeding the $1-billion mark at P46.4 billion as of end-June from P34.4 billion as of end-2012,” the firm said.

In the first six months, COL Financial said its market share in terms of voume of transactions picked up to 29.4 percent from 23.4 percent a year ago, making it the leading local brokerage firm in the country.

“We are glad to see the continuous expansion of our client base and their investments in the PSE,” Bate said, adding that the company recorded P13.1 billion in net new deposits in the first half.

“Going forward, we plan to expand our products and services to better address the needs of our existing clients and other Filipino investors,” Bate said.

COL Financial projects the PSEi to end the year at 7,250 to 7,500 and hit 7,450 to 7,700 in end-June 2014, driven by strong consumer spending, favorable economy and higher liquidity.