CitisecOnline mulls new products

MANILA, Philippines - Leading online stockbroker Citisec Online.com (COL) is planning to distribute mutual funds of the country’s biggest players as well as other instruments to provide a new revenue stream.

On the sidelines of the company’s annual stockholders’ meeting last week, COL president Conrado “Dino” Bate said the company would continue to build on its reputation as the number one online brokerage in the country by tapping new market segments and introducing new products as part of a strategy to expand customer and asset base.

For one, the company will start distributing this year mutual funds offered by market leaders Philam Life, Sunlife, Ayala Life, among others.

Bate said COL also intends to expand its business through its Private Client and Institutional Group, aimed at targeting high networth individuals and institutions through a team of investment advisors.

“We will focus on creating a high tech, high touch environment to strengthen our personal relationships with our customers within the COL platform as we leverage on the use of technology and innovation. We aim to apply the best possible technology while institutionalizing the best personalized customer care throughout the entire organization, Bate said.

Bate said the group expects net earnings to be flat this year as its Hong Kong operations continue to struggle to rebuild their portfolios given the drop in equity values last year.

COL reported a slight drop in net income in 2010 to P257.89 million, mainly due to a 41 percent hike in expenses as well as the slowdown in its Hong Kong operations.

Total revenues inched up by 5.7 percent to P490.22 million, largely driven by an increase in customer base and customer assets to 15,510 and P12 billion, respectively.

“For the first time in our company’s history, the Philippine operations accounted for 60 percent of total revenues, up significantly from only an average of 35 percent in the past two years,” Bate said.

Commission revenues soared 108 percent year on year while interest income jumped by 83 percent.

Expenses surged to P187.88 million as a result of increased personnel costs and the amount of commissions and referral fees paid.

In terms of market share, COL sustained its number one position among PSE brokers in terms of the number of transactions effected, having increased its share from 13 percent to 17 percent in 2010.