CitisecOnline profits up to P69.3 million in first half

MANILA, Philippines - Leading online brokerage firm CitisecOnline said pre-tax profits for its Philippine operations more than doubled to P69.3 million in the first half of the year on the back of the strong performance of the stock market, growing client base and increased customer deposits.

CitisecOnline president and chief executive officer Dino Bate said the group ended the first semester of the year with around 11,000 customers, representing a 48.7-percent growth year on year.   

“Our customer referrals continue to be our strongest source for customer acquisition, accounting for over 50 percent of our new accounts. With our own customers referring their family and friends to trade with us, this strongly reflects their satisfaction and loyalty to the COL platform and services, “ Bate said.

Net revenues from commissions surged 54.5 percent to P47.5 million on strong growth in customer base and client equity, which more than doubled to P7.2 billion. As a result, interest income jumped by 59.6 percent to P39.5 million. 

The 10-year old CitisecOnline continues to be the industry leader and the number one online broker with its market share expanding to 15.1 percent from 10.8 percent a year ago.

The weak performance of its Hong Kong operations, however, dragged down Citiseconline’s bottomline with net earnings dropping 14.4 percent to P109.6 million.

Commission revenues from CitisecOnline’s Hong Kong operations fell 28 percent to P116 million due to the poor performance of the Hong Kong market. From its peak in 2009, Hong Kong’s benchmark Hang Seng Index lost 12.3 percent in terms of value as of end June. 

Average value turnover slid to HK$22.6 billion from HK$25.4 billion the previous level.

As a result, pre-tax profits from  Hong Kong operations plunged 46.7 percent to P66.3 million.

Bate, however, remains confident over the long term, saying the current weakness in the Hong Kong markets is temporary.

“The cyclical and secular bull market in Hong Kong and China is not yet over, and the market’s recent decline is only a correction as investors react to the Chinese government’s effort to avoid a possible overheating of the economy” Bate pointed out.

To sustain its growth, CitisecOnline plans to launch more financial products and services to reduce its dependence on the Philippine and HK equity markets.

“We are focusing our efforts on developing customized and value-added investment programs for our customers to meet their different needs and backgrounds. By strengthening our relationship with our customers as well as the positive market outlook for the rest of the year, we are confident that COL will deliver strong financial results in the second half,” Bate said.