Col Financial Group, Inc. · PSE:COL
Col Financial — 9M24 Earnings Presentation
27 slides from Col Financial's earnings presentation, 2024
Slide 1: 9M24 COL Investor Presentation
9M24 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: Outstanding Shares, Free Float and Market Cap
4.76 Bil 21.7 Outstanding Shares % Edward K. Lee Free Float 1.19 Bil 25.0% Market Cap* Php10.66 Bil Public *As of end September 2024 15.5% Daiwa Securities Group 23.8% Other Directors & Officer 13.9% 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 9M24 Rank Broker Name 9M24 Value Turnover (Php Bil) % of Total 1 UBS Securities Philippines Inc 246.5 10.8 2 CLSA Philippines Inc 178.2 7.8 3 Regis Partners, Inc 131.3 5.7 4 COL Financial Group, Inc 113.1 4.9 5 Macquarie Capital Securities (Philippines
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 9M24 2.0% Trail Fees 1.1% Others Bulk of Revenues Generated from Commissions and Interest 63.4% Interest Commissions accounted for 33.5% of revenues. Interest income from margin loans and cash placements accounted for 63.4% of revenues. 33.5% Trailer fees from the distribution of m
Slide 10: Key Operating Highlights
Key Operating Highlights Positives Negatives 1. Revenues increased across the board 2. Client base and equity continued to grow 1. Average margin lending lower Y/Y 3. Market share and rank in the PSE 2. Net new flows were negative improved 4. MF sales remained positive despite the industry suffering
Slide 11: 9M24 Net Income +3.1% Y/Y
Pro Forma Consolidated Income Statement (Php Mil) Change 9M24 Net Income Income 9M23 9M24 Amount % +3.1% Y/Y Commissions 270.7 294.5 23.7 8.8% Interest 521.2 557.1 35.9 6.9% 9M24 net income rose 3.1% to Php416.8 Mil as all Trailer Fees 16.5 17.8 1.3 7.6% revenue items grew. Other income 7.0 9.4 2.4
Slide 12: All Revenue Items Increased
Pro Forma Revenue Breakdown (Php Mil) All Revenue Items Change Increased Revenue Breakdown 9M23 9M24 Amount % Commission 270.7 294.5 23.7 8.8% Revenues were up 7.8% to Php878.8 Mil as all revenue items Self-directed 185.8 191.0 5.2 2.8% increased. Agency & advisory 59.7 74.6 14.9 25.0% Institutional
Slide 13: All Revenue Items Increased
Pro Forma Revenue Breakdown (Php Mil) All Revenue Items Change Increased Revenue Breakdown 9M23 9M24 Amount % Commission 270.7 294.5 23.7 8.8% Interest income also remained strong, rising by 6.9% to Self-directed 185.8 191.0 5.2 2.8% Php557.1 Mil. This was largely due to the 8.0% increase in Agency
Slide 14: 3Q24 Net Income +30.0% Y/Y
Pro Forma Consolidated Income Statement (Php Mil) Change 3Q24 Net Income Income 3Q23 3Q24 Amount % +30.0% Y/Y Commissions 78.0 109.9 31.9 40.9% Interest 169.8 192.3 22.5 13.3% 3Q24 net income rose 30.0% to Php166.6 Mil driven by Trailer Fees 5.5 6.2 0.7 13.3% higher revenues across the board. Other
Slide 15: Controlled Growth of Expenses
Pro Forma Breakdown of Expenses (Php Mil) Controlled Growth of Change Expenses Trading Related Expenses 9M23 9M24 Amount % Operating expenses were up 8.6% largely due to higher trading Commission expenses 19.5 24.5 5.0 25.8% related expenses. Stock exch. dues & fees 16.3 17.0 0.7 4.3% Total 35.8 41.
Slide 16: ROAE Fell to 24.8%
ROAE Fell to 24.8% Selected Financial Ratios ROAE fell from 26.0% to 24.8%. 9M23 9M24 Profitability deteriorated due to lower margins. Operating Profit Margin 62.3% 62.0% Margins dropped as the growth in operating EBITDA Margin 66.8% 65.6% expenses outpaced revenues. The faster increase in taxes als
Slide 17: Rank Improves to Number 4
Comparative Performance (COL vs. PSE) Rank Improves to Change Number 4 9M23 9M24 Amount % COL’s average daily turnover increased by 16.8% to PSE Ave. Daily T/O (PhpMil) 6,563.3 6,229.1 (334.3) -5.1% Php614.5 Mil. This was better than the PSE’s value turnover, which fell by 5.1% during the same perio
Slide 18: 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 9/30/24 Amount % no interest-bearing debts. Cash & cash equivalents 9,664.6 11,728.9 2,064.3 21.4% Cash & cash equivalents increased by 21.4% to Php11.7 Bil. Tr
Slide 19: Customer Base Up Y/Y
Client Base +3.4% Customer Base 535,183 521,052 517,593 Up Y/Y 503,145 489,154 437,048 COL’s client base grew by 3.4% Y/Y to 535,183 as of end September 2024. 332,098 Average monthly additions reached 1,466 during the past 12 months. 2019 2020 2021 2022 2023 9M23 9M24 20
Slide 20: Client Equity Up on Higher Market Value
Client Equity (Php Mil) +11.6% Client Equity Up on 121,679 112,556 109,011 107,346 107,027 Higher Market Value 104,782 Client equity was up 11.6% Y/Y to Php121.7 Bil. 72,673 Client equity increased largely due to higher market values. Note that the PSEi index was up 15.0% Y/Y as of end September. Hi
Slide 21: Margin Loans Down
Ave Daily Margin Loans (Php Mil) -4.1% Margin Loans Down 966 930 926 759 Average daily margin loans decreased by 4.1% to 719 Php926 Mil Y/Y. 617 The number of approved margin accounts fell 518 slightly from 1,136 to 1,102. The number of accounts utilizing margin was also down from 30.8% to 30.2% whi
Slide 22: 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 generated net sales of Php280.0 Mil in 9M24 due to the Money Market 201.0 popularity of money market funds, bond funds, Bond Fund 84.5 and feeder funds. Balanced Fund -17.0 However
Slide 23: Average AUA Continued to Recover Sequentially
Average AUA (Non-Money Market Funds Only, in Php Mil) 4,558.3 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 3Q24 Non-Money Market MF Ave AUA 24
Slide 24: Total Clients Owning MFs Stabilized
Clients Owning MFs Total Clients Owning MFs Stabilized MF Investors % of Total Clients 66,000 13.2% 13.0% 12.9% 12.8% 65,000 13.0% Clients who had MF investments 12.7% 12.8% 64,000 12.6% continued to recover, reaching 64,903 as 12.5% of end September 2024 after hitting a 12.6% 63,000 12.3% low of 63
Slide 25: CMI Generates Highest YTD Sales Among PIFA Members
CMI Generates Highest YTD Sales Among PIFA Members CMI generated net sales of Php170.5 Mil in 9M24. This was despite the industry suffering CMI Net Sales vs PIFA from net redemptions amounting to Php25.2 Bil. (9M24) Net Sales (Php Mil) Sales were largely generated by the newly launched COL Strategic
Slide 26: Growing Number, but Lower Percentage of Clients Own MFs
28 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 27: 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