Col Financial Group, Inc. · PSE:COL
Col Financial — FY2023 Earnings Presentation
25 slides from Col Financial's earnings presentation, 2023
Slide 1: COL Investor Presentation 2023
2023 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 1.18 Bil 24.7% Market Cap* Php12.66 Bil Public *As of end December 2023 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 2023 Rank Broker Name 2023 Value Turnover (Php Bil) % of Total 1 UBS Securities Philippines Inc 264.6 9.0 2 CLSA Philippines Inc 191.9 6.5 3 BPI Securities Corp 182.5 6.2 4 Maybank Securities, Inc 156.6 5.3 5 Regis Partners, Inc 146.9 5.0 6 BDO Securit
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 2023 2.0% Trail Fees 1.5% Others Bulk of Revenues Generated from Commissions and Interest 77.7% Interest Commissions accounted for 30.6% of revenues. Interest income from margin loans and cash placements accounted for 77.7% of revenues. 30.6% Trailer fees from the distribution of m
Slide 10: Key Operating Highlights
Key Operating Highlights Positives Negatives 1. Net income jumped 73.6% 1. Commission revenues fell sharply 2. Higher interest income more than offset lower commission revenues 2. Rank and market share in the PSE slipped 3. Client base continued to grow 4. MF net sales still positive despite challen
Slide 11: 2023 Net Income +73.6% Y/Y
Pro Forma Consolidated Income Statement (Php Mil) Change 2023 Net Income Income 2022 2023 Amount % +73.6% Y/Y Commissions 447.1 329.6 (117.5) -26.3% Interest 336.3 708.5 372.1 110.6% 2023 net income jumped 73.6% to Php418.4 Mil as higher Trailer Fees 22.1 22.0 (0.1) -0.7% interest income offset lowe
Slide 12: Commissions Hurt by Weak Investor Interest
Pro Forma Revenue Breakdown (Php Mil) Commissions Hurt by Change Weak Investor Interest 2022 2023 Amount % Revenue Breakdown Revenues grew 32.2% despite lower commissions due to Commission 447.1 329.6 (117.5) -26.3% higher interest income. PH-Self-directed 360.1 253.5 (106.6) -29.6% PH- Agency & adv
Slide 13: Controlled Growth of Expenses
Pro Forma Breakdown of Expenses (Php Mil) Change Controlled Growth of 2022 2023 Amount % Trading Related Expenses Expenses Commission expenses 28.1 26.5 -1.6 -5.7% Stock exch. dues & fees 23.7 20.8 -2.9 -12.4% Operating expenses were up single digit despite higher Total 51.9 47.3 -4.5 -8.8% fixed op
Slide 14: ROAE Improved to 20.1%
ROAE Improved to 20.1% Selected Financial Ratios ROAE improved from 11.8% to 20.1%. 2022 2023 Profitability improved as revenues increased, leading to higher margins and asset turnover. Operating Profit Margin 39.1% 51.7% EBITDA Margin 45.6% 56.1% Margins improved as growth in revenues outpaced the
Slide 15: Rank Slips to Number 11
Comparative Performance (COL vs. PSE) Change Rank Slips to Number 11 2022 2023 Amount % COL’s average daily turnover fell 27.3% to Php491.1 PSE Ave. Daily T/O (PhpMil) 7,300.8 6,069.1 (1,231.7) -16.9% Mil. This was steeper than the PSE’s 16.9% decline as value turnover of local investors fell by 45.
Slide 16: Strong Balance Sheet
Strong Balance Sheet Pro Forma Consolidated Balance Sheet (Php Mil) Change Cash & cash equivalents fell slightly by 8.2% to Php9.7 Bil. 12/31/22 12/31/23 Amount % This was largely due to the decline in customers’ excess cash position and the reallocation of more funds to HTM Cash & cash equivalents
Slide 17: Customer Base Up Y/Y
Client Base +3.6% Customer Base Up Y/Y 521,052 503,145 489,154 437,048 COL’s client base grew by 3.6% Y/Y to 521,052 as of end 2023. 332,098 Average monthly additions reached 1,492 292,401 during the past 12 months. 247,609 2017 2018 2019 2020 2021 2022 2023 18
Slide 18: Client Equity Up on New Deposits
Client Equity (Php Mil) +2.1% Client Equity Up on New 112,556 107,346 107,027 104,782 Deposits Client equity was up 2.1% Y/Y to Php107.0 Bil. 73,102 72,673 72,398 Client equity increased largely due to new deposits. Note that the PSEi index was down by 1.8% Y/Y. However, COL registered a net cash in
Slide 19: Margin Loans Up
Ave Daily Margin Loans (Php Mil) +22.5% Margin Loans Up 930 Average daily margin loans increased by 22.5% 759 719 to Php930 Mil Y/Y. 617 The number of approved margin accounts fell 536 518 slightly from 1,166 to 1,118. The number of accounts utilizing margin was also down from 32.1% to 30.4%. Howeve
Slide 20: MF Net Sales still Positive
MF Net Sales still Positive due to Bond, Feeder, and CMI Managed Funds MF Net Sales (PhpMil) COL’s MF distribution business still generated net Fund Type sales of Php225.6 Mil in 2023 despite the Money Market 16.7 challenging operating environment. This was due to the popularity of bond funds, feede
Slide 21: Average AUA Continued to Recover Sequentially
Average AUA (Non-Money Market Funds Only, in Php Mil) 3,997.8 4,025.9 3,936.6 3,921.3 3,865.9 3,778.3 Average AUA Continued 3,604.4 to Recover Sequentially 3,446.2 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 Non-Money Market MF Ave AUA 22
Slide 22: 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 from 16,022 as of end 2022 to 16,078 as of end 2023. 10,000 Of the said number, 70.9% were Starter clients while 28.3% were Plus clients. 8,000 However, clients who had
Slide 23: Total Clients Owning MFs Stabilized
Total Clients Owning MFs Stabilized MF Investors % of Total Clients 65,000 13.2% 13.0% 12.9% 13.0% 12.8% 64,000 12.8% 12.7% 63,000 12.6% 12.5% 12.6% 62,000 64,582 64,490 64,296 64,064 64,058 63,870 12.4% 63,725 61,000 12.3% 12.2% 12.3% 61,044 60,000 12.0% 59,000 11.8% 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3
Slide 24: 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 25: 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