MANILA – First Metro Investment Corp., the investment banking arm of the Metrobank Group, posted a consolidated net income of P2.6 billion at the end of the third quarter of 2012, up P831.0 million, or 47 percent, from P1.8 billion in the same period last year. Return on equity stood at 26.59 percent.
The Treasury Group produced the biggest profit among its business units, amounting to P967 million, 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 registered a total revenue of P296 million, which was P45 million or 18.0 percent higher than last year’s income of P251 million in the same period.
The revenue was generated through various deals that included 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 US$ 10 million Corporate Notes.
“Domestic markets bounced back and regained its traction in September after languishing in the ghost month of August,” First Metro president Roberto Juanchito Dispo said.
Through 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, he also said.
The Investment Advisory Group realized P193 million in net trading gains and dividend income from investment in stocks. This is 227 percent, or P134.0 million more than their last year’s result of P59 million.
As of end September 2012, First Metro’s consolidated resources stood at P64.3 billion, capital funds reached P9.7 billion; about P2 billion, or 26 percent higher than the Dec. 31, 2011 balance.
The increase was brought about by the P1.46 billion income for the period and the P511 million additional mark-to-market gains, mainly from the company’s available for sale securities. Capital adequacy ratio remains competitive at 29.84 percent.*PNA