First Metro clears P6.8B in H1

MANILA, Philippines - First Metro Investment Corp., the investment banking arm of the Metrobank Group, posted a consolidated net income of P6.8 billion in the first half of the year, a sharp increase of 247 percent or P4.8 billion from the P1.9 billion registered in the same period in 2012.

The increase was due to huge gains from trading and stocks sale.

“The significant increase in the company’s net income was brought about by the gains from the sale of our 20-percent stake in Global Business Power and partial unloading of government securities portfolio worth P2.97 billion and P2.21 billion, respectively,” FMIC president Roberto Juanchito Dispo said.

As of end-June 2013, the firm’s total assets stood at P100 billion, 21 percent more than the 2012 year-end balance of P82.5 billion.

 The Treasury Group made a substantial contribution of P3.1 billion, up by more than four-fold or 406 percent its income in the same period last year of P621 million.

 The Investment Banking Group realized a fee income of P214 million which is 32 percent higher than their P163 million budget.

The group completed a total of 13 deals for the first half, which include, the IPOs of Philippine Business Bank and Asia United Bank; top-up Placements of Megawide Construction Corp. and Cosco Capital, Inc.; GT Capital’s P10-billion fixed rate bonds; Beacon Electric Asset Holdings, Inc.’s P17-billion corporate notes; SM Development Corp.’s P6.2-billion fixed rate corporate notes; Toledo Power Co.’s P7-billion project loan Facility; and First Pacific FP Finance (2013) Ltd.’s $250-million term loan facility, among others.

 Strategic Finance generated a net income of P152 million, 97 percent more than its first half 2012 revenue of P77 million.

 The Investment Advisory Group recorded P350 million in net trading gains and dividend income from investment in stocks. This is 113 percent or P186 million higher compared to last year’s result of P164 million.

 Capital funds ended at P24.6 billion, about 65 percent higher than the Dec. 31, 2012 balance of P14.9 billion.

 â€œFor the remainder of the year, we will continue to be very active in the investment banking space as more corporates are becoming more opportunistic in  accessing the capital markets for their funding requirements in anticipation of higher rates next year. In preparation for Basel 3, we will continue to unload our non-allied investments and liquidate some of our equity investments,” Dispo said.

 Founded in 1972, FMIC is a leading investment bank in the country with over 39 years of service in the development of the Philippine capital markets.

It provides investment banking services through its strategic business units – Investment Banking, Treasury and Investment Advisory. It holds an aggregate 70-percent market share in peso-denominated corporate and government debt transactions. With assets of P79 billion and a market capitalization of P21.9 billion as of end 2011, it is the largest investment bank in the country today.

In 2009 and 2011, First Metro was awarded the Best Bond House in the Philippines by Finance Asia.

In the last three years, First Metro was also awarded the Best Bond House by The Asset Magazine of Hong Kong.

In 2012, it was recognized by Finance Asia as the Best Equity House in the Philippines.