MANILA, Philippines - The solid performance of the Philippine economy and the numerous capital-raising activities of corporates and financial institutions boosted the consolidated net income of First Metro Investment Corp. (FMIC) by 63 percent to P1.3 billion in the first half of this year.
Total assets at the end of the first semester reached P60.7 billion, two percent higher than the end-2009 level, while capital funds rose eight percent to P9.3 billion, which translates to a healthy capital adequacy ratio (CAR) of 20.76 percent.
FMIC president Francisco Sebastian said the weakening European credit markets, the low employment numbers in the US and slumping Chinese stocks contrasted with the strong performance of emerging markets, including the Philippines.
“The operating environment buoyed our business with the solid economic performance of the Philippine and Asian economies,” he said.
As expected, FMIC’s investment banking group (treasury) took the lead in domestic fund-raising for both government and private sector, generating high fees of P363.2 million, a 24 percent expansion.
FMIC director and investment bank group head Roberto Juanchito Dispo said the group’s strong performance was characterized by a reduction of interest costs, realized gains from government securities trading, and effective distribution of fixed income securities.
”Gross earnings rose 27 percent to P2.4 billion,” Dispo added.
The investment arm of the Metrobank Group of Companies expects its total earnings to stay within its record level for the rest of the year, and possibly sustain next year.
Officials said banks are still expected to raise capital in anticipation of new risk measures of Basel III, private firms will still take advantage of the low interest environment over initial public offers, and government will likely restructure debts to long-term ones.
FMIC is looking at developing new competencies and new markets in the face of a new Philippines and the Asian markets, which has been leading the global economy.