LISTED online stockbroker CitisecOnline  (COL) posted slower growth in the first half after its larger Hong Kong-based operations tempered steep gains posted by the Philippine division.

In a statement, COL said consolidated first-half net income fell 14.4 percent to P109.6 million.

This, after commission revenues from the Hong Kong operations dropped 28 percent to P116 million due to the poor conditions in the Hong Kong stock market, which saw the benchmark Hang Send Index fall 12.3 percent from its 2009 peak.

“ As a result, pre-tax profits from COL’s Hong Kong operations fell 46.7 percent to P66.3 million,” COL said.

“The cyclical and secular bull market in Hong Kong and China is not yet over, and the market’s recent decline is only a correction as investors react to the Chinese government’s effort to avoid a possible overheating of the economy,” said COL president and chief executive officer Dino Bate.

By contrast, the broker’s Philippine operations doubled pre-tax profit to P69.3 million up from P34.2 million during the first six months last year. Commission revenues during the period also jumped 54.5 percent to P47.5 million.

COL attributed the growth to the increase in customer base which hit the 11,000-mark at the end of June, representing a 48.7-percent gain. The company said client equity also more than doubled to P7.2 billion from P3.4 billion.

In the same statement, COL said it is launching more financial products and services “to reduce its dependence on the Philippine and [Hong Kong] equity markets.”

Based on its positive  market outlook for the rest of 2010, Bate said the company expects to deliver “strong” financial results in the second half.