First Metro Investment Corporation (FMIC) ended the year with a consolidated net income of P2.2 billion amidst volatile market condition in 2011. This is 28.8% higher than the P1.7 billion net income of the previous year. Year on year return on equity stood at 20.56%.
The Treasury Group alone made a solid P1.2 billion income, 34,0% higher than last year. Net interest income from Treasury portfolio is P434.0 million, driven by higher level of securities portfolio. Gains from government securities trading is P615.0 million while fee income from securities distribution is P116.0 million.
The Investment Banking Group made a total fee income of P275.0 million that is P4.0 million or 2.0% better than previous year's fees. The bulk of this revenue was generated through various significant deals that included Beacon Electric Assets Holdings Inc.'s P11.0 billion Corporate Notes, Puregold Price Cub, Inc.'s P8.6 billion Initial Public Offering, Manila Water Company, Inc.'s P10.0 billion Corporate Notes, Metropolitan Bank & Trust Company's P10.0 billion Stock Rights Offering, among others.
First Metro president Roberto Juanchito Dispo explains, "We have once again demonstrated our dominance in the domestic debt capital market in 2011. With our in-depth understanding of the Philippine capital markets and extensive distribution capabilities, we have successfully participated in 83.4% of the total peso-denominated domestic capital market issuances amounting to P771.2 billion. This includes the P687.5 billion volume of fund raising activities for the Republic of the Philippines."
The Strategic Finance Division earned a net interest income of P159.0 million in 2011 while the Investment Advisory Group made a total net income of P38.0 million in trading gains and dividends from investment in stocks.
First Metro's assets at the end of the year is P79.0 billion, 23.1% more than the year-end balance in 2010 of P64.0 billion. Capital funds reached P11.4 billion, 14,8% higher than the 2010 year-end level.
"We expect another good year in 2012 as many converging positive factors are imminent - GDP is expected to grow by 6%, OFW remittance to increase by 7%, inflation will recede to from 3.51, exports to recover from -4.3% to 5.7%, interest rates to further compress by 50 bps from belly to long end, while short term rates will correct and the PSEi will reach above 5,000 level," Dispo added.
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