FMIC income drops 46% to P1.24 B in 1st qtr

MANILA, Philippines - First Metro Investment Corp., (FMIC) the investment banking arm of the Metrobank Group, posted a 46 percent drop in its consolidated net income to P1.24 billion in the first quarter from P2.29 billion in the same period in 2013.

“The decline in our income for the first quarter of the year is primarily due to market volatility and a high base of exceptional trading gains in the first quarter of last year,”FMIC chairman Francis  Sebastian said.

The Financial Markets Group produced net revenue of P778 million, lower than last year’s P1.39 billion but ahead of their P439 million budget.

The Investment Banking Group generated a total fee income of P110 million, 34 percent  lower than its income in the same period last year. 

This revenue accounts for deals generated in the quarter that includes: Manila North Tollways Corp’s P7-billion fixed rate bonds; JG Summit Holdings Inc.’s P30-billion fixed rate bonds; PLDT’s P15 billion fixed rate bonds; Vivant Corp’s P3-billion fixed rate corporate notes; and Filinvest Development Corp. P8.8 billion fixed rate bonds.

The Investment Advisory and Trust Group recorded earnings of P8 million from advisory and trust fees. This is 14 percent higher than last year’s P7 million.

Net earnings from subsidiaries and affiliates totaled P298 million. 

First Metro Mutual Funds, on the other hand, generated aggregate net revenues of P174 million, followed by AXA Philippines which contributed P72 million while Orix Metro Leasing and Finance Corp. contributed P35 million. Other minor subsidiaries and affiliates contributed marginal income.

Non-operating income includes net gain from the sale of investments in Charter Ping An Insurance Corp. of  P204 million, Toyota Manila Bay Corp. of  P157 million and Toyota Cubao of P31 million.