Online stock brokerage COL Financial has emerged as the top stockbroker in the Philippine Stock Exchange in the first quarter as brisk retail trading made up for the slack in foreign investor participation.
COL ended the first quarter as PSE’s number one stockbroker for the first time in the 19-year history of the stock brokerage. Its market share reached a new record high of 9.2 percent at the end of March, surging from 5.8 percent in the same period last year.
For the first quarter, COL saw a 107.1-percent year-on-year jump in first quarter net profit to P207.8 million. Revenues jumped by 71.2 percent to P365.7 million, a quarterly record high, primarily led by an 87.3-percent increase in commission revenues and the strong growth in interest income and trailer fees.
“Our outstanding performance in recent quarters reflects our strategy of focusing on the underserved retail investor base, which is scalable and seeing rapid growth,” COL president Conrado Bate said in a press statement.
“Moving forward, we will strive to further improve our customers’ investing experience by equipping them with better tools and guidance, and by continuing to enhance the products and services that we offer them,” he added.
Commission revenues were supported by higher trading activity in the quarter, as more of COL’s self-directed clients increased their participation in the stock market while the company strengthened its efforts to provide market guidance.
COL’s client base grew by 21.4 percent year-on-year to over 262,000 accounts as of end-March, driven by new accounts and referrals from existing clients.
Client equity expanded by 15.5 percent year-on-year to P73.4 billion on strong new flows from the retail segment, seen as a remarkable feat given the weak market condition in the first quarter.
Meanwhile, the company’s mutual fund distribution business, COL Fund Source, remained the top platform for mutual fund investors in the Philippines.
Quarterly net sales reached a new record of P311.1 million while assets under administration jumped by 63.8 percent to P2.4 billion as of end-March 2018 as the group actively promoted equity index funds as an easier way to invest and participate in the Philippines’ growth story.
COL’s customer base of mutual fund investors continually added funds regardless of market conditions, resulting in a regular stream of new flows since the launch of COL Fund Source in 2015.