LISTED full-service online broker COL Financial Group Inc. reported a net profit of P250.24 million for the first six months of 2024, down 9.4 percent from P276.3 million last year, amid “flattish” revenues coupled with higher operating expenses and provisions for income taxes.
First-half consolidated revenue was flat at P572.82 million as the drop in commission revenues, and the booking of trading losses was offset by increased interest income and trail fees.
“Commission revenues dropped by 4.2 percent to P184.59 million as investors remained cautious given the numerous uncertainties prevailing in the Philippine stock market,” COL explained.
“The booking of P1.01 million worth of trading losses from the parent company’s dealer activities in the first half of 2024” also weighed on earnings, it added. In the same period last year, it noted that it booked P4.87 million worth of trading gains.
Higher interest rates drove interest income up 3.8 percent to P364.76 million, as interest income from placements grew 5 percent, “more than offsetting the 6.7 percent drop in interest income from the margin lending business,” it added.
Nonetheless, COL said it is dedicated to optimizing profitability by efficiently utilizing its capital resources, with the ultimate goal of enhancing shareholder value.
For the first six months, COL’s client base is said to have grown 3.2 percent year-on-year to 543,274.
Net equity improved 2.7 percent to P111.64 billion as of end-June, as net new cash inflows of clients reached P1.57 billion during the past 12 months.
COL said it has total trade receivables of P1.03 billion due to a significant increase from the Philippine clearing house, amounting to P145.34 million from P10.89 million as of end December 2023, while receivables from customers grew to P881.96 million, driven by more selling transactions from its postpaid customers.
Annualized return on average equity, meanwhile, fell 23.4 percent from 27.8 percent.
“As of end-June 2024, the parent company’s risk-based capital adequacy ratio (RBCA) reached 628.5 percent, well above the minimum requirement of 110.0 percent,” COL added.
Last February 16, COL’s board of directors approved the intention of its wholly owned subsidiary, COL Securities Ltd. (COLHK) based in Hong Kong, to cease its stock brokerage operations on May 30, 2024, due to challenging market conditions, including increased competition, and market volatility, resulting in diminished returns and limited business prospects.
“It (COLHK) is currently undergoing deregistration procedures, which is expected to be completed by August 31, 2025,” COL said.
Shares of COL Financial closed on Thursday at P2.22 apiece.
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