First Metro Investment Corp., the investment banking arm of the Metrobank Group, posted a 24.8-percent increase in its first-semester profit to P1.1 billion from a year ago.
The profit growth was attributed to the strong performance of its treasury and investment banking operations.
The largest share of the profit originated from the treasury group, which registered a gross income of P1.5 billion.
In a statement, FMIC president Roberto Juanchito Dispo said earnings from this segment consisted of some P1.2 billion in gross interest income from fixed income portfolio, trading gains booked from the sale of government securities, which reached P243.9 million, and other income amounting to P39.5 million.
Investment banking fee reached P319.3 million, up by 17.7 percent from a year ago, due to various deals with both the government and prime corporate clients. These deals included Power Sector Assets and Liabilities Management Corp.’s (PSALM) P75-billion guaranteed syndicated Loan; Beacon Electric Asset Holdings Inc.’s P11-billion corporate notes; Manila Water Co. Inc.’s P10-billion fixed rate corporate notes; Ayala Corp.’s P10-billion multiple put fixed rate retail bond; SM Prime Holding Inc.’s P7-billion and P5-billion fixed and floating rate notes, respectively; Federal Land Inc.’s P6.6-billion corporate notes; and Aboitiz Power Corp.’s P5-billion fixed rate corporate notes.
“The second half of the year poses an even more positive backdrop for the domestic debt capital market as more corporate fund raising is expected for infrastructure and utilities projects during the period,” Dispo said.
Interest income grew by 4.6 percent over the same period due to increases in loan portfolio and bank deposit accounts.
FMIC ended June with consolidated resources of P72.8 billion, up by 13.8 percent from a year ago.
Its capital adequacy ratio stood at 17.87 percent of risk assets.
“We remain bullish given the country’s strong economic fundamentals and favorable macroeconomic factors. Our company’s strategy will be aggressive though vigilant, and cautious as we traverse the second semester road in pursuit of income, profits and trading gains, taking advantage of opportunities but at the same time avoiding land mines that may litter the market’s path,” FMIC president Francisco Sebastian said.