ATRKE income up 77% in 2010

MANILA, Philippines - ATR KimEng Financial Corp. (ATRKE Financial) has reported a 77-percent increase in net income in 2010, or from P172.3 million in 2009 to P305 million.

Total consolidated revenues rose 24 percent to P2.7 billion last year from P2.1 billion in 2009. Likewise, consolidated assets was placed at P5.8 billion.

In terms of growth among its subsidiaries, ATR KimEng Asset Management Inc. (ATRKE Asset Management), and the trust department of ATRKE Capital reported an increase of over 600 percent in assets under management (AUM) reaching a record P8.3 billion.

“That is largely due to the introduction of new mutual fund products and the increase in trust institutional portfolios,” officials said.

ATR KimEng Land Inc. reported a 364 percent expansion from earnings through the sale of units in the TRIbecas Private Residences project in Muntinlupa City. The real estate group reported sales worth P100 million last year from a mere P21.7 million in 2009.

AsianLife & General Assurance Corp. and AsianLife Financial Assurance Corp., the insurance units of the financial institution together recorded a 14-percent increase in revenues from premiums, interest and other income of P1.7 billion. 

Net income grew 32 percent from P105 million in 2009 to P139 million in 2010. Total revenues and net income of the insurance group accounted for 63 percent and 46 percent of ATRKE Financial’s consolidated revenues and net income in 2010.

Meanwhile, the capital markets group, led by ATR KimEng Capital Partners Inc. (ATRKE Capital) recorded milestones during the year.

ATRKE Capital was domestic lead manager for the initial public offer (IPO) for Cebu Air Inc. and Nickel Asia Corp. This gives ATRKE Capital the distinction of having led all of the four Philippine IPOs successfully completed in the last four years.

Stock brokerage ATR KimEng Securities Inc. (ATRKE Securities), a subsidiary of ATRKE Capital, reported on a stand-alone basis, a 39-percent jump in commission revenues to P543.9 million despite lower value turnover at the Philippine Stock Exchange (PSE), bringing consolidated commissions to P615.4 million, up 40 percent from the prior year.

In anticipation of stricter enforcement by the PSE of minimum public ownership rules, ATRKE Financial completed last year a P510-million placement of secondary shares to several investors, thus increasing its public float to 17.95 percent of total shares outstanding. Funds raised from the placement were used for further expansion of its asset management and investment banking businesses.

Likewise, Malayan Banking Bhd. would be acquiring shares of stock in Kim Eng Holdings, a major shareholder of ATRKE Financial. Through its subsidiary Aseam Credit Sdn. Bhd, Malayan Banking would be making acquisition of equity by tapping various stakeholders and shareowners.