PSE net income grows 35% in 2013
The Philippine Stock Exchange (PSE) reported that its net income for 2013 increased by 35.1 percent to Php844.8 million from Php625.3 million in 2012 due to higher listing and trading related income.
“The significant growth in our revenues and income highlights the resilience of the company amidst the volatilities experienced by the market arising from uncertainties in the US economy. The country’s sound economic fundamentals and the heightened interest of investors to participate in the growth of our market have provided the impetus for increased trading activity,” said PSE President and CEO Hans B. Sicat.
Revenues rose 33.8 percent to Php1.53 billion as all income components showed notable growth. Listing-related income expanded by 28.5 percent to Php160.07 million with the addition of 10 companies in the roster of listed firms in the Exchange. Eight companies conducted their initial public offering in 2013, namely, Philippine Business Bank and Asia United Bank Corporation, AG Finance, Inc., Harbor Star Shipping Services, Inc., Travellers International Hotel Group, Inc., Robinsons Retail Holdings, Inc., Discovery World Corporation and Concepcion Industrial Corporation, while two companies, Del Monte Pacific Limited and First Metro Exchange Traded Fund listed by way of introduction.
“Despite the lack of capital raising activities during the third quarter, we still managed to come close to our target. A lot of the companies understandably went into a wait and see mode. But in the last quarter, we all saw them coming back with their capital raising plans which only shows that the stock market remains to be a sound and compelling venue to generate funds,” Mr. Sicat explained.
Meanwhile, trading-related income surged by 59.4 percent to Php118.09 million on the back of robust trading volumes. Service fees from Securities Clearing Corporation of the Philippines (SCCP), PSE’s wholly-owned subsidiary, increased by 43.7 percent to Php454.68 million.
The market’s total value turnover grew by 43.7 percent to Php2.55 trillion pesos while daily average turnover shot up by 44.9 percent in 2013.
Meanwhile, the Exchange efficiently managed its expenses for the year which grew only by 6 percent to Php528 million pesos from Php498.3 million in 2012.
“We have launched a great number of products and services in 2013 all geared to drive the growth of the company and the stock market over the medium-term. We are keen to sustain all these initiatives to make us more attractive as an investment destination and to help us become more competitive as a market particularly with the forthcoming ASEAN economic integration in 2015,” Mr. Sicat added.
The PSE expects capital raising activities to surpass the Php175 billion-level that was raised in 2013 behind the continuous demand from companies to grow their business amidst the vibrant economic activity. The Exchange is also pushing for more ETFs to be listed this year and is targeting to launch its short selling program during the first half of the year. It likewise expects more trading participants to launch their online trading platform using PSETradex this year. Currently, three brokers offer online trading through PSETradex. The PSE is also reviewing its market data business to provide more data products to investors.
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