CitisecOnline profit up 22% in first half

Amid sluggish market conditions, online brokerage firm CitisecOnline.com reported a 22 percent growth in its net profit in the first half this year, boosted by higher revenue contributions from its wholly-owned Hong Kong unit.

In a financial report submitted to the Securities and Exchange Commission, CitisecOnline said its net earnings climbed to P72.95 million from P59.85 million last year. Revenues likewise grew 16.8 percent to P137.05 million from P117.31 million.

In the second quarter alone, however, CitisecOnline’s net income rose only 8.4 percent to P38.14 million from P35.18 million while its revenues expanded just 8.7 percent to P71.26 million. Expenses grew at a faster pace, increasing 9.89 percent to P25.44 million.

CitisecOnline noted that the group’s trading activities remained buoyant at P46.3 billion, 67 percent higher than the previous level.

“While customers aggressively trimmed their positions in the Philippines, customers in Hong Kong actively traded their portfolios to take advantage of the high volatility and better liquidity in the market,” CitisecOnline said.

At end-June this year, the company’s customer base rose to 5,664 from only 3,166 in the same period a year ago.

CitisecOnline said commissions rose 14.7 percent while interest, mostly from margin financing, went up 24.6 percent as the parent company’s average monthly margin utilization increased 20.7 percent to P108.1 million.

Cash and cash equivalents balance declined three percent due to withdrawals made by customers who have decided to temporarily stay liquid while waiting for a turnaround in market conditions.

Financial assets at fair value through profit or loss, which are short term investment in stocks, increased to P6.1 million as the group’s investible funds were channeled to investment outlets that are expected to yield the most profitable return.

Its subsidiary CitisecOnline.com Hong Kong Ltd. is a member of the Hong Kong Exchanges (HKEx) and as such is a registered owner of a HKEx trading right. It is currently upgrading its online trading platform, which will be made available to the more active, sophisticated and experienced CitisecOnline customers. – Zinnia dela Peña