First Metro Investment Corporation, the investment banking arm of the Metrobank Group, realized a consolidated net income of P979.0 million in the first quarter of 2012. This is 127.0% more than the P431.0 million profit posted during the same period last year. Return on equity stood at 31.5%.
The Treasury Group made P479.0 million for the period, generated from interest income earned from fixed income portfolio and trading gains from the sale and redemption of government and private securities and fee income from securities distribution. This is 79.0% or P211.0 million higher than last year’s income of P268.0 million in the same period.
The Investment Banking Group, on the other hand, produced a fee income of P84.0 million which is P22.0 million or 36.0% ahead of their P62.0 million budget.
First Metro president Roberto Juanchito Dispo said, "The deals pipeline remains healthy as more debt and equity capital markets fund raising are planned to be completed in the months to come. We also expect to execute one or two major project finance transactions in the second half for major power projects.”
This quarter’s notable deals include, the Bureau of the Treasury’s P179.8 billion Retail Treasury Bonds; SMART’s P5.5 billion Fixed Rate Corporate Notes; Manila Electric Company’s P3.0 billion Corporate Notes; San Miguel Brewery, Inc.’s P20.0 billion Corporate Retail Bonds; and City Savings Bank’s P3.0 billion Fixed Rate Corporate Notes.
The Investment Advisory Group garnered P65.0 million in net trading gains and dividend income from investment in stocks. This is 550.0% or P55.0 million higher compared to last year’s result of P10.0 million.
The company maintains high liquidity, both for statutory and legal reserves as well as market opportunities. Its consolidated assets grew by P6.4 billion in 3 months, it now stood at P85.2 billion, 8.2% higher than the end of December figure of P78.8 billion.
Capital funds reached P13.5 billion, about P2.1 billion or 18.4% higher than the December 31, 2011 balance. Capital adequacy ratio remains competitive at 20.63%.
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