Col Financial Group, Inc. · PSE:COL
Col Financial — H1 2024 Earnings Presentation
26 slides from Col Financial's earnings presentation, 2024
Slide 1: 1H24 COL Investor Presentation
1H24 COL Investor Presentation 1
Slide 2: Company Overview
Company Overview Established and The leading online licensed by the SEC in stockbroker in the 1999 Philippines Focused on tapping Founder (Edward K. Lee) the underserved retail retains a 21.7% stake investor base in the and actively manages stock market the Company 2
Slide 3: Shares outstanding, free float and market cap
4.76 Bil 21.7 Outstanding Shares % Edward K. Lee Free Float 1.19 Bil 25.1% Market Cap* Php11.04 Bil Public *As of end June 2024 15.5% Daiwa Securities Group 23.8% Other Directors & Officer 13.8% Alexander C. Yu 3
Slide 4: Business Objective
Business Objective To be the preferred source of financial services, a trusted provider of guidance and investment and a strong organization committed to delivering great value to its customers. Our goal is to be Champion of the Filipino Investor 4
Slide 5: COL Milestones
COL Milestones 1999 2000-2001 2006 2008 2010 Licensed by the SEC Began operating the Listed in the PSE at Launched the COL Launched the full- to conduct business COL PH online Php0.136/sh Easy Investment service agency and as a broker and trading platform Program (EIP) advisory team called seller of
Slide 6: COL Milestones
COL Milestones 2012 2014 2015 2017 2021 2022 70% owned Officially Granted a Launched COL Japan’s Daiwa Started COL changed Mutual Fund Fund Source - Securities Group, distributing Investment corporate name Distributor the first fund Inc. acquired a Feeder Funds Management to COL Financial License by
Slide 7: Among the Biggest Philippine Based Stockbrokers
Among the Biggest Philippine Based Stockbrokers 1H24 Rank Broker Name 1H24 Value Turnover (Php Bil) % of Total 1 UBS Securities Philippines Inc 157.7 10.5 2 CLSA Philippines Inc 113.0 7.5 3 Regis Partners, Inc 87.0 5.8 4 Macquarie Capital Securities (Philippines), Inc 74.9 5.0 5 Maybank Securities,
Slide 8: The Biggest Philippine Based Stockbroker
The Biggest Philippine Based Stockbroker Total Accounts (as of 2023) Total Online Accounts (as of 2023) 73% 27 % 66% 34% Others Others COL COL Source: PSE 8
Slide 9: Bulk of Revenues Generated from Commissions and Interest
Revenue Breakdown 1H24 2.1% Trail Fees 0.4% Others Bulk of Revenues Generated from Commissions and Interest 64.7% Interest Commissions accounted for 32.7% of revenues. Interest income from margin loans and cash placements accounted for 64.7% of revenues. 32.7% Trailer fees from the distribution of m
Slide 10: Key Operating Highlights
Key Operating Highlights Positives Negatives 1. Client base and equity continued to grow 1. Commission revenues weakened as value turnover in the PSE fell 2. Market share and rank in the PSE improved 2. Margin lending lower Y/Y 3. MF sales remained positive despite the industry suffering from net re
Slide 11: 1H24 Net Income -9.4% Y/Y
Pro Forma Consolidated Income Statement (Php Mil) Change 1H24 Net Income Income 1H23 1H24 Amount % -9.4% Y/Y Commissions 192.7 184.6 (8.1) -4.2% Interest 351.4 364.8 13.3 3.8% 1H24 net income fell 9.4% to Php250.2 Mil as Trailer Fees 11.0 11.6 0.5 4.8% commission revenues remained weak and as taxes
Slide 12: Higher Interest Income and Trail Fees Offset Lower Commissions
Higher Interest Income and Pro Forma Revenue Breakdown (Php Mil) Change Trail Fees Offset Lower 1H23 1H24 Amount % Commissions Revenue Breakdown Commission 192.7 184.6 (8.1) -4.2% Revenues were flat at Php563.8 Mil as higher interest income and trail fees offset lower commissions. Self-directed 132.
Slide 13: 2Q24 Net Income +13.6% Y/Y
Pro Forma Consolidated Income Statement (Php Mil) Change 2Q24 Net Income Income 2Q23 2Q24 Amount % +13.6% Y/Y Commissions 65.0 90.6 25.6 39.4% Interest 179.4 182.6 3.2 1.8% 2Q24 net income rose 13.6% to Php134.1 Mil driven by Trailer Fees 5.5 5.8 0.3 5.2% higher commission and trail fees. Other inco
Slide 14: Controlled Growth of Expenses
Pro Forma Breakdown of Expenses (Php Mil) Change Controlled Growth of 1H23 1H24 Amount % Trading Related Expenses Expenses Commission expenses 12.6 14.7 2.1 16.9% Stock exch. dues & fees 10.7 10.9 0.2 1.8% Operating expenses were up 2.8% largely due to higher trading Total 23.3 25.6 2.3 10.0% relate
Slide 15: ROAE Fell to 23.2%
ROAE Fell to 23.2% Selected Financial Ratios ROAE fell from 27.5% to 23.2%. 1H23 1H24 Profitability deteriorated due to lower margins and lower leverage. Operating Profit Margin 62.4% 61.4% EBITDA Margin 66.7% 65.2% Margins dropped as the growth in operating expenses outpaced revenues. The faster in
Slide 16: Rank Improves to Number 7
Comparative Performance (COL vs. PSE) Rank Improves to Change Number 7 1H23 1H24 Amount % COL’s average daily turnover fell 2.5% to Php574.4 Mil. PSE Ave. Daily T/O (PhpMil) 6,981.6 6,232.0 (749.6) -10.7% This was slower than the PSE’s 10.7% decline. COL Ave. Daily T/O (PhpMil) 588.9 574.4 (14.5) -2
Slide 17: Strong Balance Sheet
Strong Balance Sheet Pro Forma Consolidated Balance Sheet (Php Mil) Change COL’s balance sheet remained strong with ample cash and 12/31/23 6/30/24 Amount % no interest-bearing debts. Cash & cash equivalents 9,664.6 9,472.5 -192.1 -2.0% Cash & cash equivalents fell slightly by 2.0% to Php9.5 Bil. Tr
Slide 18: Customer Base Up Y/Y
Client Base +3.3% Customer Base 530,170 521,052 Up Y/Y 513,439 503,145 489,154 437,048 COL’s client base grew by 3.2% Y/Y to 530,170 as of end June 2024. 332,098 Average monthly additions reached 1,394 during the past 12 months. 2019 2020 2021 2022 2023 1H23 1H24 18
Slide 19: Client Equity Up on Higher Market Value
Client Equity (Php Mil) +3.1% Client Equity Up on 112,556 111,688 108,328 Higher Market Value 107,346 107,027 104,782 Client equity was up 3.1% Y/Y to Php111.7 Bil. 72,673 Client equity increased largely due to positive inflows. COL registered a net cash inflow from retail clients amounting to Php1.
Slide 20: Margin Loans Down
Ave Daily Margin Loans (Php Mil) +7.6% Margin Loans Down 997 930 922 Average daily margin loans decreased by 7.6% to Php922 Mil Y/Y. 759 719 The number of approved margin accounts fell 617 slightly from 1,154 to 1,097. The number of accounts utilizing margin was also down from 518 32.0% to 31.0% whi
Slide 21: MF Net Sales still Positive due to Bond and Feeder Funds
MF Net Sales still Positive due to Bond and Feeder Funds MF Net Sales (PhpMil) Fund Type COL’s MF distribution business still generated net sales of Php42.3 Mil in 1H24 despite the Money Market 92.0 challenging operating environment. This was due Bond Fund 61.5 to the popularity of money market and
Slide 22: Average AUA Continued to Recover Sequentially
Average AUA (Non-Money Market Funds Only, in Php Mil) 4,407.2 4,268.9 4,025.9 3,997.8 3,936.6 3,921.3 3,865.9 3,778.3 3,604.4 3,446.2 Average AUA Continued to Recover Sequentially 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 Non-Money Market MF Ave AUA 22
Slide 23: Total Clients Owning MFs Stabilized
Clients Owning MFs Total Clients Owning MFs Stabilized MF Investors % of Total Clients 65,000 13.2% 13.0% 12.9% 12.8% 13.0% 64,000 12.7% 12.8% Clients who had MF investments 12.6% 63,000 12.5% continued to recover, reaching 64,533 as 12.6% of end June 2024 after hitting a low of 63,725 as of end Jun
Slide 24: MF Only Clients Up Slightly
MF Only Clients 18,000 MF only Clients Up Slightly 16,000 14,000 The number of clients who only owned MFs 12,000 increased slightly to 16,465 as of end June 2024 10,000 from 16,016 during the same period last year. 8,000 Of the said number, 71.0% were Starter clients while 28.1% were Plus clients. 6
Slide 25: Growing Number, but Lower Percentage of Clients Own MFs
25 10,000.0 20,000.0 30,000.0 40,000.0 50,000.0 60,000.0 70,000.0 0.0 SOURCE: COL ESTIMATES 5,244 3.4% 7,526 4.6% 11,859 6.9% 13,690 7.5% 16,599 8.5% 18,317 8.9% 20,493 9.5% 22,257 9.9% 24,739 10.4% 27,375 11.1% MF Investors 30,421 11.6% 32,675 12.0% 34,847 12.3% 36,349 12.4% 38,069 12.5% % of Total
Slide 26: Disclaimer
Disclaimer This presentation was prepared solely and exclusively for discussion purposes. This presentation and/or any part thereof may not be reproduced, disclosed or used without the prior written consent of COL Financial (the “Company”). This presentation, as well as discussions arising therefrom