FMIC profit jumps 46%

MANILA, Philippines - First Metro Investment Corp. (FMIC), the investment banking arm of the Metrobank Group, said its consolidated net income jumped 46 percent to P2.6 billion at the end of the third quarter, from P1.8 billion in the same period last year. 

The company said the increase was attributed to the improved performance of its Treasury Group which produced the biggest profit among its business units, amounting to P967 million.

Specifically, the Treasury Group’s 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, the other hand, posted total income of P296 million or 18 percent higher than last year’s figure of P251 million.

FMIC generated revenues mainly through deals that include PLDT’s P8-billion corporate notes; San Miguel Corp.’s P80-billion preferred shares; SM Investments Corp.’s P15-billion corporate bonds and Cirtek Holdings Philippines Corp.’s $10-million corporate notes.

“Domestic markets bounced back and regained its traction in September after languishing in the ghost month of August. The favorable market condition in September, strong economic fundamentals and abundant liquidity allowed resumption of fundraising activities in the capital markets by corporate issuers and First Metro was able to complete a good number of significant deals,” FMIC president Roberto Juanchito Dispo said.

Meanwhile, the Investment Advisory Group realized P193 million in net trading gains and dividend income from investment in stocks. This was 227 percent more than last year’s result of P59 million.

As of end-September 2012, FMIC’s consolidated resources stood at P64.3 billion.

“More capital market deals are expected in the last quarter of the year as companies are expected to take advantage of low interest rates. Looking at our own pipeline, the company may be on its way to realizing another record setting year not only in terms of financial returns but also in terms of depth, variety and quality of transactions completed in 2012,” Dispo added.