First Metro Investment nets P1B in ’04

First Metro Investment Corp. reported a net income of P1.003 billion in 2004, slightly lower than net earnigs of P1.4 billionin 2003.

First Metro Investment is the investment banking subsidiary of Metropolitan Bank & Trust Co., the country’s biggest bank network Metrobank, owns 98.7 percent of First Metro Investment.

"Our strategic business units continued to perform strongly despite the labored landscape of 2004," First Metro Investment president Francisco Sebastian said. ‘This has allowed us to end the year with a P1.003 billion in net income, or a return on equity of 14 percent."

First Metro Investment also declared a cash dividend of P40 per share, equivalent to an aggregate amount of P1.51 billion.

First Metro Investment recently adopted a minimum dividend policy of two-percent per quarter, subject to the availability of retained earnings and to the requisite approval by the Bangko Sentral.

So far, its capital funds remain the largest in the industry at P5.7 billion despite the recently approved cash dividend.

"We will continue to capitalize on the opportunities and challenges to lead the development of the capital markets, and to increase our shareholder value and exceed our stakeholders’ expectation," Sebastian said.

First Metro Investment’s Treasury Group posted an income of P760 million, 74 percent of which came from trading gains from government securities, with commercial paper trading income making up the balance.

Its Investment Advisory Group took advantage of the bullish stock market with trading gains of P76 million. Its Investment Banking Group dominated the corporate debt market in 2004, achieving a 26-percent market share and raising a total of P63.3 billion in capital.