FMIC more than doubles income to P7.12 B in Jan-Sept

MANILA, Philippines - First Metro Investment Corp. (FMIC), the investment house of the Metrobank Group, registered a consolidated net income of P7.12 billion in three quarters this year, up 176 percent from P2.58 billion in the same period last year. 

Its Treasury Group produced a net revenue of P3.36 billion for the period, which is P2.4 billion or 248 percent higher than last year’s income of P967 million.

The income 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 fee income of P395 million which is P99 million or 33 percent higher than its P296-million income in the same period last year.

Investment banking deals for the period included Beacon Electric Asset Holdings Inc.’s P9-billion corporate notes; Ayala Land Inc.’s P15-billion fixed rate bonds; Manila Water Co. Inc.’s P5-billion term loan facility; and the Bureau of the Treasury’s P150-billion retail Treasury bonds, among others.

Strategic Finance earned P209 million, 61 percent or P79 million higher than last year’s P130 million.

The Investment Advisory Group ended the quarter with P84 million in net trading gains and dividend income from investment in stocks.

FMIC president Roberto Juanchito Dispo said the investment bank will continue to be very active in the remainder of the year.

“There is a mad rush among local firms to raise money from both debt and equity capital markets in anticipation of higher rates beginning next year and possible (US) QE tapering which will depress the equity market. We are, in fact, involved in nine major capital markets transactions which are for execution between now and the end of the year,” Dispo said.

FMIC recently declared a cash dividend amounting to P3.03 billion or P8.08 per share.

“This is our biggest cash dividend payment to date which relates to historical record income the company will report in 2013.” “The biggest we’ve given out in the past was P1 billion or P2.66 per share, which was in 2011,” FMIC chairman Francisco Sebastian said.

Capital funds ended at P19.77 billion which is P8.91 billion or 82 percent higher than the end-2012 balance of P10.87 billion. FMIC has over 50 years of service in the development of the Philippine capital markets. It is the investment banking arm of the Metrobank Group, one of the largest financial conglomerates in the country.

As of end-2012, FMIC’s assets stood at P82 billion with stockholders’ equity of P15 billion, making it the largest investment bank in the Philippines.

First Metro and its subsidiaries offer a wide range of services, from debt and equity underwriting, loan syndication, project finance, financial advisory, investment advisory to government securities and corporate debt trading, equity brokering, online trading, asset management, and research.