CitisecOnline says PHL operations drive H1 earnings higher

Stock brokerage CitiesecOnline Financial Group Inc. (COL) saw its consolidated net income jump 14.7 percent to P209.1 million in the first half – its Philippine operations making up for the slowdown in its Hong Kong unit.   “Growth was tempered by the weak performance of (Hong Kong) and as COL expanded domestically leading to higher operating expenses,” the group noted in a disclosure to the Philippine Stock Exchange Wednesday.   Revenues from Hong Kong dropped 48.2 percent to P33.6 million due to deteriorating market conditions, the group noted, while operating expenses in the Philippines grew 63.2 percent to P115.5 million.   “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 -term organic growth,” president and CEO Dino Bate said in the disclosure.   “Ultimately, our profitability as a stock broker is only a consequence of our customers’ success,” he added.   Consolidated revenues jump 11 percent to P355.9 million.   “Due to the strong growth in COL’s domestic operations, the Philippines already accounted for 91 percent of consolidated revenues during the first half of 2012, up from 82 percent for the whole of 2011,” the company said.   Broker’s commission jumped 58.1 percent to P227.9 million, lifted by an increase in value of transactions on the PSE and coupled with a strong growth in client base.   Value turn-over grew 43.2 percent while the group’s client base increased to over 37,000 from 28,000 as of end-2011.   Consolidated assets expanded by 16.3 percent to P4.1 billion as of end-June, boosted by expanded client equity of P22.1 billion from P16.5 billion as of end-2011.   The group said it maintained its leadership in the Philippine bourse for the first half. Market share in terms of transaction volume increased by 23 percent from 19 percent, “strengthening its position as the number one stock broker in the PSE,” CitisecOnline said in the disclosure.   In value terms the brokerage’s rank jumped from 8th place last year to 7^th, driven by P84.6 billion worth of transactions.   “Its market share also increased by 20 basis points to 4.5 percent in the first half of 2012 from 4.3 percent in 2011,” the company noted. — Marc Jayson Cayabyab/VS, GMA News