First Metro posts P431.4-M net income in first quarter

Manila, Philippines - First Metro Investment Corp. (FMIC) reported a net income of P431.4 million in the first quarter, up 11 percent from the P389.8 million reported in the same quarter last year.

Total resources stood at P63.1 billion while capital funds remained strong at P10.2 billion. Risk-based capital adequacy ratio (CAR) stood 19.83 percent.

In a statement, FMIC said that its investment banking deal pipeline remains healthy, noting that corporate borrowers are locking in their fundamental needs at fixed rates that are still low.

FMIC, the investment arm of the Metrobank Group, is priming up for more major government and private sector bond and notes issuances.

FMIC president Roberto Juanchito Dispo said they will not hesitate to stir up deals driven by prime local corporates’ strong appetite for debt financing through the local capital market.

Deals secured for the quarter include P104 billion in retail treasury bonds (RTB), notes issuances from some of the country’s top corporations like SM Prime Holdings, Manila Electric Co., SM Investment Corp., GT Capital, Property Company of Friends, and the stock rights issue of Metropolitan Bank and Trust Co. (Metrobank).

FMIC’s Treasury Group contributed P629.9 million which is just P47.9 million or 7.1 percent lower than the P677.8 million income from the same quarter in 2010.

“The decrease was due to lower securities portfolio during the quarter,” Dispo pointed out.

Interest income grew 67.4 percent due mainly to the P251.9 million increase in income from loans and receivables, caused by the 17-percent increase in the loans portfolio.

FMIC reported a 67.8-percent increase in net earnings in 2010, or from P1 billion in 2009 to P1.7 billion.

Top performer last year was the Treasury Group, which recorded an income of P968.9 million, 45.5 percent higher than the previous year.

The Investment Banking Group registered a net income of P252.8 million or 25.7 percent better than the previous year.

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

Total assets amounted to P64 billion, or 7.4 percent more than the P59.6 billion the previous year. Capital funds reached P9.9 billion, 15.2 percent higher than in 2009.