First Metro profit hits P6.8B

The Metrobank group’s investment banking arm, First Metro Investment Corp., booked a first semester net profit of P6.8 billion, more than three times the year-ago level, on the back of hefty trading gains and the sale of its interest in a power generation affiliate.

The consolidated net income for the first six months jumped by 247 percent from P1.9 billion in the same period last year.

“The significant increase in the company’s net income was brought about by the gains from the sale of our 20-percent stake in Global Business Power and the partial unloading of government securities portfolio of P2.97 billion and P2.21 billion, respectively,” First Metro president Roberto Juanchito Dispo said in a statement.

First Metro’s balance sheet as of end-June breached the P100-billion mark, rising from the end-2012 level of P82.5 billion.

The treasury group contributed P3.1 billion in the first six months, 406 percent more than the year-ago level.

The investment banking group realized a fee income of P214 million, 32 percent higher than its target. The group completed 13 deals in the first half, which included the initial public offering of Philippine Business Bank and Asia United Bank; top-up placements of Megawide Construction Corp. and Cosco Capital Inc.; GT Capital’s P10-billion fixed rate bonds; Beacon Electric Asset Holdings Inc.’s P17- billion corporate note issue; SM Development Corp.’s P6.2-billion fixed rate corporate note issue; Toledo Power Co.’s P7-billion project loan facility, and First Pacific FP Finance (2013) Ltd.’s $250-million term loan facility.

The strategic finance unit generated a net income of P152 million, 97 percent higher year-on-year, while the investment advisory group recorded P350 million in net trading gains and dividend income from investment in stocks, rising by 113 percent year-on-year.

Capital funds ended at P24.6 billion, 65 percent higher than the end-2012 level.

“For the remainder of the year, we will continue to be very active in the investment banking space as more corporations are becoming more opportunistic in accessing the capital markets for their funding requirements in anticipation of higher rates next year. In preparation for Basel 3, we will continue to unload our non-allied investments and liquidate some of our equity investments,” Dispo said.