MANILA, Philippines - First Metro Investment Corp. (FMIC), the investment house of the Metrobank Group, more than tripled its net income to P11.54 billion in 2013 from P3.27 billion in 2012 due to higher trading gains.
The unprecedented 253-percent growth in earnings translated to a return on equity (ROE) of 68.34 percent, company officials said.
“What makes it even more special is that it may probably go down in the history books as the highest income level ever produced by an investment bank in the country. This solid and strong income performance result clearly strengthens our capital base, helping us to ensure that the company can face the regulatory changes starting this year,†FMIC chairman Francisco Sebastian said.
FMIC’s Treasury Group alone earned a solid P4.29 billion during the period, 252 percent higher than the previous year’s income of P1.22 billion.
Sebastian said this was driven by interest income from fixed income securities, trading gains from the sale of government securities, distribution fee income and brokering fee.
The Investment Banking Group generated a total fee income of P479 million or P130 million more than the previous year’s result of P349 million.
The bulk of this was generated through various deals that included the P2.375-billion top-up placement of Megawide Construction Corp.; the P3.19 billion IPO of Philippine Business Bank; the P17-billion and P9- billion corporate notes facility of Beacon Electric Asset Holdings Inc.; the P10-billion fixed rate bonds of GT Capital Holdings Inc.; the P24-billion project loan facility of Therma South Inc.-Aboitiz Power Co.; and the P7-billion project loan facility of Toledo Power Co.
The investment bank also participated in the Bureau of the Treasury’s fundraising in 2013 as co-issue manager in the P150-billion 10-year RTBs.
“The year 2013 is indeed a very good year for us that will be difficult to replicate,†FMIC president Roberto Juanchito Dispo said.
“2014 is a different challenge to us, but we are confident that the company will remain strong and the business will continue to flourish. We maintain our positive outlook for the Philippine economy in 2014; our fundamentals are intact and the growth story remains unabated,†he added.
On the external front, Dispo said they expect the recovery of the global economy, bolstered by the accelerated growth of the US as well as the emergence of the Euro zone from recession.
FMIC, one of the largest financial conglomerates in the country, has over 50 years of service in the development of the Philippine capital markets.
It offers a wide range of services, from debt and equity underwriting to loan syndication, project finance, financial advisory, investment advisory, government securities and corporate debt trading, equity brokering, online trading, asset management, and research.