Col Financial Group, Inc. · PSE:COL
Col Financial — 9M 2022 Earnings Presentation
27 slides from Col Financial's earnings presentation, 2022
Slide 1: 9M 2022 COL Investor Presentation
9M 2022 COL Investor Presentation 1
Slide 2: Company Overview
Company Overview Established and The leading and fastest- licensed by the SEC in growing online stockbroker 1999 in the 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 1.16 Bil 24.9% Market Cap* Php15.3 Bil Public *As of end September 2022 14.9% Daiwa Securities Group 24.9% 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: The Biggest Philippine Based Stockbroker
The Biggest Philippine Based Stockbroker 9M22 Rank Broker Name 9M22 Value Turnover (Php Bil) % of Total 1 UBS Securities Philippines Inc 205.0 7.7 2 CLSA Philippines Inc 188.8 7.1 3 Mandarin Securities Corp 156.8 5.9 4 COL Financial Group, Inc 135.7 5.1 5 Credit Suisse Securities (Phil) Inc 121.6 4.
Slide 6: The Biggest Philippine Based Stockbroker
The Biggest Philippine Based Stockbroker Total Accounts (as of 2021) Total Online Accounts (as of 2021) 73% 27 % 58% 42% Others Others COL COL Source: PSE 8
Slide 7: Bulk of Revenues Generated from Commissions and Interest
Revenue Breakdown 9M22 2.9% Trail Fees 0.3% Others Bulk of Revenues 33.8% Interest Generated from Commissions and Interest 63.1% Commissions accounted for 63.1% of revenues. Interest income from margin loans and cash Commissions placements accounted for 33.8% of revenues. Trailer fees from the distr
Slide 8: Key Operating Highlights
Key Operating Highlights Positives Negatives 1. 3Q22 performance improved Q/Q 1. Commission revenues and net 2. Interest income grew Q/Q and Y/Y income fell sharply, as investor sentiment deteriorated 3. MF sales remained positive; trail fees stable 2. Rank and market share in the PSE slipped 4. Mar
Slide 9: 9M22 Net Income -64.4% Y/Y
Pro Forma Consolidated Income Statement (Php Mil) Change 9M22 Net Income 9M21 9M22 Amount % Income -64.4% Y/Y Commissions 817.9 367.7 (450.2) -55.0% Interest 128.3 196.9 68.7 53.5% 9M22 net income fell by 64.4% to Php207.5 Mil Trailer Fees 15.7 16.8 1.1 7.2% largely due to the significant decline in
Slide 10: 3Q22 Net Income -33.7% Y/Y
Pro Forma Consolidated Income Statement (Php Mil) Change 3Q22 Net Income 3Q21 3Q22 Amount % Income -33.7% Y/Y Commissions 178.0 102.1 (76.0) -42.7% Interest 44.1 86.3 42.2 95.8% Trailer Fees 5.4 5.4 0.0 0.1% 3Q22 net income fell by 33.7% to Php68.7 Other income 0.6 0.9 0.4 63.7% Mil largely due to t
Slide 11: Commissions Hurt by Poor Sentiment
Pro Forma Revenue Breakdown (Php Mil) Commissions Hurt by Poor Change Sentiment 9M21 9M22 Amount % Revenue Breakdown Commission 817.9 367.7 (450.2) -55.0% Revenues fell by 42.6% due to the significant decline in commissions and the absence of other income. PH-Self-directed 742.7 299.6 (443.1) -59.7%
Slide 12: Commissions Hurt by Poor Sentiment
Pro Forma Revenue Breakdown (Php Mil) Commissions Hurt by Poor Change Sentiment 9M21 9M22 Amount % Revenue Breakdown Commission 817.9 367.7 (450.2) -55.0% On the positive side, interest income from both PH-Self-directed 742.7 299.6 (443.1) -59.7% margin and placements grew, with the total up by PH-
Slide 13: Performance Improved Q/Q
Performance Improved Q/Q Pro Forma Revenue Breakdown (Php Mil) Change Also worth highlighting is the 18.1% Q/Q 2Q22 3Q22 Amount % improvement in 3Q22 revenues to Php194.7 Mil. Revenue Breakdown Commission revenues in 3Q22 improved by 3.2% on Commission 98.9 102.1 3.2 3.2% a Q/Q basis to Php102.1 Mil
Slide 14: Flattish Expenses
Pro Forma Breakdown of Expenses (Php Mil) Change 9M21 9M22 Amount % Flattish Expenses Trading Related Expenses Commission expenses 23.9 22.6 -1.3 -5.5% Agency & Advisory 22.8 22.0 -0.8 -3.3% Operating expenses were flat, as higher fixed CROs & Others 1.1 0.5 -0.6 -50.6% operating expenses were offse
Slide 15: ROAE Normalized to 13.7%
ROAE Normalized to 13.7% Selected Financial Ratios 9M21 9M22 Annualized ROAE normalized from 39.5% to 13.7%. Profitability deteriorated as commissions fell, Operating Profit Margin 70.7% 46.8% leading to weaker margins and lower asset turnover. EBITDA Margin 75.5% 53.7% Net Margin 57.4% 35.6% Margin
Slide 16: Now Number 4
Comparative Performance (COL vs. PSE) Change Now Number 4 9M21 9M22 Amount % COL’s average daily turnover fell 56.1% to PSE Ave. Daily T/O (PhpMil) 8,432.2 7,158.5 (1,273.6) -15.1% Php729.6 Mil in 9M22. This was much steeper than the PSE’s 15.1% decline. COL Ave. Daily T/O (PhpMil) 1,661.3 729.6 (93
Slide 17: Strong Balance Sheet
Strong Balance Sheet Pro Forma Consolidated Balance Sheet (Php Mil) Change 12/31/21 9/30/22 Amount % Cash & cash equivalents increased by 353.7% to Php7.9 Bil. This was largely due to the reallocation of funds away from investment securities to Cash & cash equivalents 1,733.5 7,865.4 6,131.9 353.7%
Slide 18: Strong Balance Sheet
Strong Balance Sheet Pro Forma Consolidated Balance Sheet (Php Mil) Change 12/31/21 9/30/22 Amount % Stockholders’ equity fell by 8.0% to Php1.9 Bil due Cash & cash equivalents 1,733.5 7,865.4 6,131.9 353.7% to the payment of Php404.6 Mil worth of cash Trade receivables 958.8 890.4 -68.4 -7.1% divid
Slide 19: Customer Base Up Y/Y
Client Base +4.2% Customer Base 498,625 489,154 478,673 Up Y/Y 437,048 COL’s client base grew by 4.2% Y/Y to 332,098 498,625 as of end September 2022. 292,401 Average monthly additions during the past 12 months reached 1,663. The increase would have been larger if not for the suspension of 13,102 do
Slide 20: Client Equity Down on Lower Asset Values
Client Equity (Php Mil) -13.0% Client Equity Down on 107,346 112,556 111,041 96,580 Lower Asset Values 72,673 72,398 Client equity was down 13.0% Y/Y to Php96.6 Bil as of end September 2022. Client equity fell due to lower asset values, partly offset by new deposits from clients. As of end September
Slide 21: Margin Loans Up
Ave Daily Margin Loans (Php Mil) +13.2% Margin Loans Up 752 719 664 617 Average daily margin loans increased by 13.2% to Php752 Mil Y/Y. 536 518 As of end September, the total number of approved margin accounts was 1,183, slightly lower compared to 1,232 during the same period last year. Less client
Slide 22: MF Net Sales still Positive due to Feeder Funds
MF Net Sales Acc to Fund Type (Php Mil) MF Net Sales still Positive due to Feeder Funds COL’s MF distribution business still generated net 228.5 140.5 sales of Php159.8 Mil during 9M22 despite the challenging operating environment, due to the introduction of Feeder Funds. Around Php89.5 Mil or 56.0%
Slide 23: Average AUA Down
Average AUA (Non-Money Market Funds Only, in Php Mil) 3,997.8 3,874.3 Average AUA Down 3,778.3 3,742.6 AUA was down Y/Y and Q/Q to Php3.4 Bil as of end September despite the 3,529.5 3,483.6 strong sales of feeder funds due to the 3,444.0 weak performance of both bond and equity markets in 2022. Howe
Slide 24: Percentage of Clients Owning MFs Rebounded
Percentage of Clients Owning MFs Rebounded MF Investors % of Total Clients 14.3% 70,000 14.5% 13.9% 13.8% 60,000 14.0% 13.5% 50,000 13.5% 13.1% 12.9% 60,866 13.0% 61,044 12.6% 63,870 13.0% 61,489 12.8% 62,27312.7% 40,000 13.0% 64,296 60,418 60,268 30,000 57,682 52,925 46,168 12.5% 20,000 12.0% 10,00
Slide 25: MF only Clients Continued to Grow
MF Only Clients MF only Clients Continued 18,000 to Grow 16,000 14,000 The number of clients who only owned MFs 12,000 continued to increase. 10,000 As of end September, there were 16,088 clients 8,000 who only owned MFs, up 11.5% Y/Y and 1.5% Q/Q. 6,000 Of the said number, 11,368 or 70.4% were Star
Slide 26: Growing Number, but Lower Percentage of Clients Own MFs
29 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