First Metro Investment posts 67.8% profit growth

MANILA, Philippines - First Metro Investment Corp. (FMIC), the investment arm of the Metrobank Group, has reported a 67.8 percent increase in net earnings in 2010 to P1.7 billion from P1 billion in 2009.

FMIC president Francisco Sebastian said they are optimistic the strong growth momentum and positive income results generated in 2010 will be carried over this year, banking on the consistent contribution of its business units that include treasury, investment banking, corporate lending and investment advisory.

The top performer is the treasury group, which recorded an income of P968.9 million, up 45.5 percent from the previous year. Net interest income from the treasury portfolio alone reached P955.9 million, driven by the higher level of securities portfolio and lower cost of fund.

Gains from trading of government securities amounted to P953.2 million, while fee income from securities distribution reached P118.4 million.

Non-interest expenses, meanwhile, amounted to P708 million.

The investment banking group registered a net income of P252.8 million or 25.7 percent more than the previous year’s figures.

The bulk of the group’s revenue was generated through several big-ticket items such as the P30-billion Power Sector Assets and Liabilities Management Corp. (PSALM) retail treasury bond; P18 billion capital notes of Beacon Electric Assets Holdings Inc.; P14-billion project loan facility of Panay Development Corp.; P12-billion bond issue of the Home Development Mutual Fund or the Pag-IBIG Fund.

Meanwhile, the corporate lending department earned P185.1 million or 160.6 percent more than the previous year.

The investment advisory group also posted a strong performance with a net income of P269.3 million in trading gains and dividends from investment in stocks. This was 38 percent higher than the 2009 net income of 195.1 million.

Aside from its outstanding stock performance, the investment advisory group also garnered the top spot in the performance of the equity and balanced mutual funds. The Save & Learn Equity Fund showed a 63 percent return, much higher than the rise in the Philippine Stock index of 37 percent for 2010.