Online broker’s net profit surged 123% in 2nd quarter

Leading online stockbroker CitisecOnline.com Inc. (COL) grew its second-quarter net profit by 123 percent year on year to P100.3 million, benefiting from a much-improved domestic appetite for equities investing.

Due to its robust performance during the second quarter, total profit for the first half surged 66 percent to P182.3 million compared to a year ago.

“We have seen that more and more Filipinos are getting more involved in their financial wellness by educating themselves and taking charge of their investments. The practice of investing online in the stock market is gaining ground as the public understands that this is the simple and easy way to create genuine wealth for the long term,” COL president and chief executive Dino Bate said in a statement.

COL’s local operations made up for the slack in the performance of its unit in Hong Kong. The Philippines accounted for 78 percent of total revenues in the second quarter, up from the 50-percent share a year ago.

Revenues from COL’s Philippine operations surged 152 percent to P132.5 million, boosted by commissions generated from increased trading activity and the foray into the high net worth individuals category through its Private Clients Group.

COL’s Hong Kong operations remained weak with second-quarter revenues dropping 30 percent from a year ago to P36.5 million as the Chinese government’s effort to avoid overheating dampened investor confidence.

The brokerage house’s customer base more than doubled to 22,178 as of end-June from 10,072 during the same period last year. The number was also higher by 43 percent compared with the end-2010 level.

COL also expanded its market share at the local stock exchange to 19.4 percent of total trades and 4.1 percent of total value turnover during the first half, up from their respective levels of 15.1 percent and 1.8 percent a year ago.

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