First Metro Investment income hits P1 billion in 2009

MANILA, Philippines - The First Metro Investment Corp. (FMIC), the investment banking arm of the Metrobank Group, recorded an impressive consolidated net income of P1 billion in 2009.

“Record investment banking fees, and gains from fixed income and equity trades fueled the increase in revenues,” it said in a statement. Return on average equity for the parent company was reported at 14.4 percent.

However, it still fell short of its record earnings of P1.4 billion realized in 2003.

FMIC president Francisco Sebastian said that last year was the best debt market for a long time.

“The crisis became an opportunity to push our drive to issue more bonds locally. This is reflected in our Investment Banking Group’s outstanding performance this year and the Treasury Group’s wide distribution of these bonds across a wide range of institutional and retail investors,” Sebastian added.

FMIC secured lead roles in almost all major corporate debt transactions. 

It managed to corner almost 90 percent of government debt issuances and almost 50 percent of corporate debt issuances. 

Significant deals included the Bureau of Treasury’s P114.4 billion retail treasury bonds (RTBs), the P16 billion Cebu Energy Development Corp. Project Loan Facility, the Aboitiz Power Corp. P5 billion fixed rate corporate notes, and the Globe Telecom P5 billion fixed rate notes.

Treasury operations continued to contribute substantially to income. Significant fees were earned from its distribution activities of mandated deals from PLDT, Globe Telecom, San Miguel Brewery, and the RTB Tranche 11.

The Investment Advisory Group’s income from equity trading ended at P103 million net of funding cost as the stock market rallied. This was almost triple of what they made in 2008.

Meanwhile, FMIC’s total resources reached P59.6 billion, a 29-percent increase over 2008. Capital funds hit P8.6 billion or 18 percent higher than year ago level, while capital adequacy ratio (CAR) remained more than adequate at 24.3 percent.

Officials of the investment house is optimistic likewise that income in the first quarter this year will outperform the P140 million recorded in January to March 2009.