ATR KimEng posts 52.2% profit hike to P144 million

MANILA, Philippines - Investment house ATR KimEng Financial Corp. reported a consolidated net income of P144 million in the first half of the year, a 52.2-percent improvement over the P94.6 million earnings in the same period last year.

Total consolidated revenues increased to P1.3 billion while expenses went down to P1.1 billion during the period. Its consolidated assets ballooned to P5.2 billion as of end-June.

ATRKE Financial president Manuel Tordesillas said all its subsidiaries reported major gains, including revenues from insurance premiums, commissions, and interest income that sustained their general upward trend from previous quarters.

Insurance subsidiaries AsianLife Financial Assurance Corp. (ALFA) and AsianLife & General Assurance Corp. (ALGA) contributed the most to revenues, with premiums and interest income combining for a total of P798.5 million, or an 18.1 percent improvement over last year.

ATR KimEng Securities Corp. led the capital markets business with commissions increasing by 15.8 percent year-on-year to P235.2 million as local equity trading continued its upbeat performance in the first half of 2010.

ATRKE Securities was chosen “Best Domestic Broker” for the fourth time by leading regional financial publication FinanceAsia. It ranked first in the Philippine Stock Exchange in value turnover in 2009, and has remained active in the capital markets this year. A total turnover value of P17.8 billion in June gave it an 11.9 percent share of the market and the number one position at the PSE’s Trading Participants’ Ranking Report.

Gross real estate revenues improved 90.6 percent in the first six months to P20.1 million, with Towers 1 and 2 of its TrIbeca Private Residences project in Sucat, Muntinlupa completed and turnover of units to the buyers ongoing. Construction of Towers 3 and 4 is in progress. TrIbeca is a joint venture of subsidiary ATR KimEng Land Corp. with high-end property developer Landco Pacific Corp.

The company’s asset management group, which operates through ATR KimEng Asset Management Inc. and the trust department of ATR KimEng Capital Partners Inc. also experienced strong growth, evidenced by the increase in assets under management (AUM).

For trust activities, AUMs reached P4.7 billion in the first six months, while AUMs for the mutual funds grew 22 percent to P 938 million, excluding advisory portfolios.

Last month, investment house subsidiary ATRKE Capital raised $5 million from Kim Eng Holdings Ltd. The new money will be used, among others, to seed the growing number of investment funds being managed by its subsidiary ATRKE Asset Management.

ATRKE Financial is also on track with the strengthening of its capital base. It recently reported to the PSE that the Securities and Exchange Commission (SEC) has approved the company’s increase in authorized capital stock by way of stock dividends.

Early this May, shareholders approved the increase in common share capital to P1.3 billion and the declaration of an eight-percent stock dividend.