COL Financial Posts Income Growth Despite Volatile 2018 Market
One of the country’s prominent online stockbroker, COL Financial Group Inc., posted a 32.7 percent growth in net income in the nine months to September this year, despite the market’s volatility. Their net income grew to ₱450.8 million for the nine-month period, which already exceeds its full-year income in 2017. The company churned in consolidated revenues of ₱870.7 million during the period, up 22.5 percent.
The company registered strong growth in its core revenues as it has been expanding its products and services. COL Financial also increased their engagement with clients as they aid them in wealth building.
According to COL president and CEO Dino Bate, the drivers of profit growth was the significant improvement in operating profit margin as the contribution of self-directed clients to total commission revenues increased to 81.9 percent during the period from 70.4 percent a year ago. And, despite the difficult market conditions, COL’s client base continued to increase, resulting in over 283,000 accounts as of end-September or an increase of 19.8 percent year-on-year. Total client equity likewise remained steady at ₱71.3 billion, with total net new flows reaching ₱6.3 billion as COL’s clients continued to add to their portfolios.
COL’s average daily value turnover in the Philippine Stock Exchange (PSE) rose 9.9 percent in contrast to the 14.6 percent drop in the PSE’s average daily value turnover. The online brokerage also continued to promote mutual fund investing as a simpler way of investing in stocks, resulting in an increase in the number of clients with mutual funds. As of end-September, 12.3 percent of COL’s clients own mutual funds compared to only 10.4 percent during the same period a year ago.