Pasig—(PHStocks)—COL Financial Group Inc. (PSE: COL) delivered record breaking results during the third quarter of 2016. Consolidated revenues jumped by 44.3% to a new record high of PhP258.6 million. This was largely a result of the significant increase in the value of transactions handled by COL and the continuous growth of its customer base. Not surprisingly, recurring profits for the third quarter jumped by 66.0% to PhP133.7 million which is also a record high. Headline profits increased by a much faster pace of 135.3% since profits in the third quarter of 2015 were pulled down by the booking of PhP23.7 million worth of one-off tax expenses. Return on average equity (ROE) reached 40.2%.
Given the strong third quarter results, COL’s revenues for the year to date period increased by 12.8% to PhP658.7 million, while recurring net income jumped by 17.3% to PhP316.9 million, already exceeding last year’s full year recurring profits of PhP286.4 million.
COL’s commission revenues during the third quarter of 2016 increased by 64.3% to PhP197.6 million. Growth exceeded the 11.3% increase in the value turnover of the Philippine Stock Exchange (PSE) during the same period. Commissions grew as COL continued to expand its customer base. As of end September 2016, COL already had more than 195,000 accounts as it was able to add almost 33,000 accounts for the year to date period. Client equity handled by COL also increased significantly to more than PhP60 billion as of end September 2016 from PhP48.6 billion as of end 2015.
COL’s outperformance allowed its market share in the PSE for the first nine months of 2016 to reach a new record high of 12.1% in terms of value of local transactions and 5.9% in terms of value of total transactions. Its ranking in terms of value traded likewise improved to number five from number eight previously. It also maintained its number one position in terms of volume of transactions as it cornered 21.5% of total transactions during the first nine months of the year.
COL’s newly launched fund distribution business, COL Fund Source, also continued to gain traction. Despite being in operations for only a year, COL Fund Source already had more than 16,500 clients while the total value of assets under administration already reached PhP1.2 billion. In fact, during the first nine months of 2016, COL’s mutual funds net sales reached PhP659.9 million. This was despite the industry suffering from a net redemption of its peso denominated funds amounting to PhP3.9 billion during the same period.
“We are pleased to announce another record quarter for COL. More importantly, we are glad to see the continuous growth of our client base and their investments which is a clear testament to our success in educating and encouraging more Filipinos to save and invest.” said President and CEO Dino Bate.
COL Financial is the dominant market leader in online stock brokering in the Philippines. Meanwhile, its mutual fund distribution business COL Fund Source currently carries the peso denominated funds of six asset management companies which together account for around 98% of the assets under management of the mutual fund industry.