What bear market? COL Financial boosts client base by 44%
Leading internet-based stockbrokerage COL Financial managed to eke out a small profit last year despite a predominantly bear market.
Net earnings of COL amounted to P262.69 million, slightly higher than the P262.27 million reported in 2014.
The company derives a significant amount of its revenues from commission generated from stock trades, interest income from margin financing and short-term placements, as well as trailer fees from the distribution of mutual funds.
Net revenues went up by only 1.9 percent to P737.04 million as commission revenues fell 3.3 percent to P486.9 million due to weaker trading activity in the local stock market.
Interest income, however, rose 8.3 percent as the firm benefited from the 41 percent increase in its cash position to P6.5 billion. COL likewise reported a P17.1 million worth of other income, more than three times the P5 million booked the previous year.
Despite the volatile trading environment, the number of customer accounts for COL?s Philippine operations grew by 43.9 percent to 162,330 as of the end of December last year.
?Although the Philippine stock market is currently undergoing a difficult phase, we believe that this is only temporary. Given the country?s strong fundamentals, we are confident that the stock market?s long term trend remains positive. Coupled with the underpenetrated nature of the financial services industry, we still see much room for growth, ? COL president and CEO Dino Bate said in a statement.
Owned by businessman Edward Lee, COL maintained its rank as the number one stock broker in terms of volume of transactions and eighth largest stock broker in terms of value turnover.