Col Financial Group, Inc. · PSE:COL
Col Financial — Q1 2024 Earnings Presentation
26 slides from Col Financial's earnings presentation, 2024
Slide 1: 1Q24 COL Investor Presentation
1Q24 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 1.17 Bil 24.6% Market Cap* Php10.90 Bil Public *As of end March 2024 15.5% Daiwa Securities Group 24.3% 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 1Q24 Rank Broker Name 1Q24 Value Turnover (Php Bil) % of Total 1 UBS Securities Philippines Inc 78.1 10.6 2 CLSA Philippines Inc 61.3 8.3 3 Macquarie Capital Securities (Philippines), Inc 45.1 6.1 4 Maybank Securities, Inc 43.2 5.9 5 Regis Partners, In
Slide 8: The Biggest Philippine Based Stockbroker
The Biggest Philippine Based Stockbroker Total Accounts (as of 2022) Total Online Accounts (as of 2022) 71% 29 % 60% 40% Others Others COL COL Source: PSE 8
Slide 9: Bulk of Revenues Generated from Commissions and Interest
Revenue Breakdown 1Q24 2.0% Trail Fees 0.4% Others Bulk of Revenues Generated from Commissions and Interest 64.3% Interest Commissions accounted for 33.2% of revenues. Interest income from margin loans and cash placements accounted for 64.3% of revenues. 33.2% 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. Net income down as commission 2. Average daily value turnover and market revenues continued to drop share in the PSE improved for the second quarter in a row 2. Rank and market share in the PSE 3. Interest in
Slide 11: 1Q24 Net Income -26.6% Y/Y
Pro Forma Consolidated Income Statement (Php Mil) Change 1Q24 Net Income Income 1Q23 1Q24 Amount % -26.6% Y/Y Commissions 127.7 93.9 (33.7) -26.4% Interest 172.1 182.2 10.1 5.9% 1Q24 net income fell 26.6% to Php116.1 Mil as Trailer Fees 5.5 5.8 0.2 4.4% commission revenues continued to fall. Other i
Slide 12: Commissions Hurt by Weak Investor Interest
Pro Forma Revenue Breakdown (Php Mil) Commissions Hurt by Change Weak Investor Interest 1Q23 1Q24 Amount % Revenue Breakdown Revenues fell by 9.1% largely due to lower commissions. Commission 127.7 93.9 (33.7) -26.4% PH-Self-directed & insti 97.5 66.9 (30.5) -31.3% Commission revenues fell by 26.4%
Slide 13: Controlled Growth of Expenses
Pro Forma Breakdown of Expenses (Php Mil) Change Controlled Growth of 1Q23 1Q24 Amount % Trading Related Expenses Expenses Commission expenses 8.6 7.7 (0.9) -10.8% Stock exch. dues & fees 6.2 5.5 (0.7) -11.3% Operating expenses were down 3.0% due to lower trading Total 14.8 13.2 (1.6) -11.0% related
Slide 14: ROAE Fell to 20.7%
ROAE Fell to 20.7% Selected Financial Ratios ROAE fell from 30.9% to 20.7%. 1Q23 1Q24 Profitability deteriorated as revenues decreased, leading to lower margins and asset turnover. Operating Profit Margin 64.9% 62.5% EBITDA Margin 68.8% 66.2% Margins dropped as the decline in revenues outpaced the d
Slide 15: Rank Slips to Number 8
Comparative Performance (COL vs. PSE) Change Rank Slips to Number 8 1Q23 1Q24 Amount % COL’s average daily turnover fell 23.7% to Php573.5 PSE Ave. Daily T/O (PhpMil) 7,682.2 6,028.1 (1,654.0) -21.5% Mil. This was steeper than the PSE’s 21.5% decline. COL Ave. Daily T/O (PhpMil) 751.8 573.5 (178.2)
Slide 16: Market Share Up for Second Quarter in a Row
Market Share Up for Comparative Performance (COL vs. PSE) Second Quarter in a Row 1Q 23 2Q 23 3Q 23 4Q 23 1Q 24 PSE Ave. Daily T/O (PhpMil) 7,682.2 6,220.6 5,712.4 4,492.6 6,028.1 On the positive side, COL’s average daily turnover increased for the second COL Ave. Daily T/O (PhpMil) 751.8 412.0 373.
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 3/31/24 Amount % no interest bearing debts. Cash & cash equivalents 9,664.6 9,978.5 313.9 3.2% Cash & cash equivalents increased slightly by 3.2% to Trade recei
Slide 18: Customer Base Up Y/Y
Client Base +3.2% Customer Base 525,983 521,052 509,587 Up Y/Y 503,145 489,154 437,048 COL’s client base grew by 3.2% Y/Y to 525,983 as of end March 2024. 332,098 Average monthly additions reached 1,366 during the past 12 months. 2019 2020 2021 2022 2023 1Q23 1Q24 18
Slide 19: Client Equity Up on Higher Market Value
Client Equity (Php Mil) +3.8% Client Equity Up on 112,556 111,621 107,571 107,346 107,027 104,782 Higher Market Value 72,673 Client equity was up 3.8% Y/Y to Php111.6 Bil. Client equity increased largely due to higher market value. Note that the PSEi index was up 2.9% Y/Y. COL registered a net cash
Slide 20: Margin Loans Down
Ave Daily Margin Loans (Php Mil) -10.4% Margin Loans Down 1,093 979 930 Average daily margin loans decreased by 10.4% to Php979 Mil Y/Y. 759 719 The number of approved margin accounts fell slightly from 1,171 to 1,098. The number of 617 accounts utilizing margin was also down from 518 33.8% to 31.2%
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 1Q24 despite the Money Market 3.1 challenging operating environment. This was due Bond Fund 31.2 to the popularity of bond funds and fee
Slide 22: Average AUA Continued to Recover Sequentially
Average AUA (Non-Money Market Funds Only, in Php Mil) 3,997.8 4,025.9 4,268.9 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 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% 13.0% 12.8% 64,000 Clients who had MF investments fell to 12.7% 64,350 as of end March 2024 to 64,490 12.8% 63,000 12.6% during the same period last year. 64,058 12.5% However, the number
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 16,380 as of end March 2024 from 16,042 during the same period last 10,000 year. 8,000 Of the said number, 70.8% were Starter clients 6,000 while 28.3% were Plus cli
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