First Metro posts 29% profit hike

MANILA, Philippines - The First Metro Investment Corp. (FMIC) has reported a 28.8-percent increase in net income last year, or from P1.7 billion in 2010 to P2.2 billion in 2011.

FMIC’s year-on-year return on equity (ROE) stood at 20.56 percent.

FMIC is the investment house of the Metrobank Group of Companies. It is focused on treasury earnings, investment banking, investment advisory and corporate lending, and the regional business development

FMIC president Roberto Juanchito Dispo said the 2011 results reflect the investment house’s dominance in the domestic debt capital market.

“With our in-depth understanding of the Philippine capital markets and extensive distribution capabilities, we have successfully participated in 83.4 percent of the total peso-denominated domestic capital market issuances amounting to P771.2 billion. This includes the P687.5 billion volume of fund raising activities for the Republic of the Philippines,” Dispo added.

In a report, the treasury group realized earnings worth P1.2 billion, 34 percent higher than last year.

Net interest income from the treasury portfolio driven by higher level of securities portfolio reached P434 million. Gains from government securities trading amounted to P615 million while fee-based income from securities distribution is P116 million.

The investment banking group made a total income from fees of P275 million or P4 million better than previous year’s fees.

Dispo said the bulk of this revenue was generated through various significant deals, including the Beacon Electric Assets Holdings Inc.’s P11-billion corporate notes, Puregold Price Club Inc.’s P8.6-billion initial public offering (IPO), Manila Water Co. Inc.’s P10-billion corporate notes, Metropolitan Bank & Trust Co.’s P10-billion stock rights offering, among others.

Meanwhile, the strategic finance division earned a net interest income of P159 million while the Investment Advisory Group made a total net income of P38 million in trading gains and dividends from investment in stocks.

FMIC’s assets stood at P79 billion, or 23.1 percent more than the 2010 year-end balance of P64 billion. Capital funds reached P11.4 billion higher than 14.8 percent.

“We expect another good year in 2012 as many converging positive factors are imminent – GDP is expected to grow by six percent, overseas Filipino remittance to increase by seven percent, inflation will recede to three from 3.5 percent, exports to recover from negative 4.3 percent to 5.7 percent, interest rates to further compress by 50 basis points, while short term rates will correct and the Philippine Stock Exchange Index (PSEi) will reach above 5,000 level,” Dispo added.