FMIC posts 134% profit hike to P2.3 B in Q1

MANILA, Philippines - First Metro Investment Corp., FMIC) the investment house of the Metrobank Group, posted a 134 percent increase in its consolidated net income in the first quarter to P2.3 billion, from P979 million in the same period last year.

 â€œWe are very happy with our first quarter results as this is one of the best quarters we’ve had in years.  This early, all our strategic business units contributed significantly to our bottom line,” FMIC president Roberto Juanchito Dispo said.

“We attribute our good performance to the country’s favorable macroeconomic environment that opens up a lot of opportunities and allows us to strengthen our franchise and continuously deliver unmatched services to our clients.”

He said the Treasury Group contributed the highest income for the period under review at P1.1 billion, 126 percent more than the P478 million profit it made in the same period last year.

“This was generated from interest income from fixed income portfolio and trading gains from the sale and redemption of government and private securities, and fee income from securities distribution,” he said. 

The Investment Banking Group, meanwhile, reported a 100 percent increase in total fee income to P168 million from P84 million in the comparative period last year.

FMIC’s notable deals this quarter include Beacon Electric Asset Holdings Inc.’s P17-billion corporate notes; Megawide Construction Corp.’s P4-billion notes facility Philippine Business Bank’s P3.192-billion initial public offering; GT Capital Holdings Inc.’s P10-billion fixed rate bonds; and Toledo Power Co.’s P7-billion project loan facility.

Strategic Finance also registered positive results, producing P96 million, a 129 percent leap from its first quarter 2012 income of P42 million.

The total income of Investment Advisory Group also  jumped 232 percent to P216 million from P65 million due to net trading gains and dividend income from investments in stocks. 

The investment bank’s consolidated assets stood at P86.5 billion.

“With this encouraging take-off and as our country continues to show a remarkable growth performance; much improved fiscal position; massive liquidity inflows; benign  inflation; and an equities market that continues to soar and roar, the rest of the year certainly looks very positive for the domestic capital markets, which we intend to take advantage of, Dispo said.”