First Metro resources hit P45.4 billion

MANILA, Philippines – The First Metro Investment Corp. (First Metro), the investment banking arm of the Metrobank Group, has reported total resources of P45.4 billion at the end of March 2009, slightly higher than year-end’s P44.2 billion.

Net income however slipped by 25 percent to P140 million.

First Metro director and executive vice president Roberto Juanchito T. Dispo, assured however that “as short-term rates declined, interest spread turned positive in March onwards” and expressed hopes this can be maintained for the rest of 2009.

The treasury group contributed most of First Metro’s income, benefiting from realized trading gains from sale of government securities, which made up for negative spread on its fixed income portfolio due to high deposit rates at the end of 2008 and early into the current year.   

Its investment banking business accelerated with fees rising 12 percent to P83 million compared to last year.

First Metro continues to churn out deals driven by prime local corporates’ strong appetite for debt financing through the local capital market. Deals completed for the quarter include bonds and notes issuances for some of the country’s top corporations namely Ayala Land Inc., PLDT, Globe Telecom, Metrobank Card Corp., Ayala Corp., and the Philippine National Bank (PNB).

Capital funds ended at P5.6 billion as of March 31, 2009, which translates to a 19.63-percent capital adequacy ratio (CAR).