CitisecOnline earnings jump four-fold to P137.6M in 2007

Listed brokerage house Citisec Online.com Inc. said its net eanings jumped four-fold last year to P137.6 million from only P34.3 million in 2006 on the back of increased customer accounts.

In a financial report filed with securities regulators, CitisecOnline said gross income surged 203.4 percent to P285.91 million from P94.23 million a year earlier, largely driven by higher commissions from clients’ trading activities.

Customer accounts expanded to 5,125 from only 1,343. “It is encouraging to note that word of mouth advertising generated majority of the accounts,” CitisecOnline said.

Interest income, mostly from margin financing and fixed income investments, rose 133.2 percent while membership fees and dues and commissions and referral fees increased by P2.9 million or 152.2 percent and P9.7 million or 645.9 percent, respectively.

Expenses likewise went up by P52.2 million as personnel costs grew P22.7 million or 86.8 percent due to the across-the-board salary adjustments made to realign employees’ pay to market and the hiring of additional staff to complement the firm’s growing operational requirements.

Advertising expenses also increased by P2.9 million as the company launched various promotional activities to create brand awareness.

As of end-2007, CitisecOnline had total assets of P1.54 billion, up 88.5 percent, as cash and cash equivalents increased by 61 percent or P300.4 million.