Local investment house First Metro Investment Corp.’s profit last year declined to P2.34 billion from 2013’s record high bottom line of P11.54 billion, which was bloated by non-recurring gains from a string of asset sales.
In a press statement, the investment banking arm of the Metrobank group said its net profit in 2014 translated to a return on equity of 12.59 percent and return on assets of 3.06 percent.
The 2013 profit was boosted by the gains from the sale of investments in Charter Ping An, Toyota Manila Bay Corp. and Toyota Cubao, and the divestment of a 40-percent stake in power generation affiliate Global Business Power Corp. to Orix Corp. of Japan and Meralco PowerGen Corp.
First Metro president Roberto Juanchito Dispo said: “We see a very favorable economic environment in 2015 which will augur well for our businesses. With low inflation and money growth returning to its desired levels, we see little chance of a policy rate hike before the fourth quarter.”
FMIC sees investors rushing into bond issuances due to the bunching of maturity of the bonds previously issued and as the usual issuers exceed their single borrower’s limit (SBL).
“We are also very bullish about the equities market; we anticipate the PSEi (Philippine Stock Exchange index) to reach the 8,300-8,500 levels. We are optimistic that 2015 will be a good year not only for First Metro but, more importantly, for the entire capital markets,” he said.
FMIC’s financial markets group made P1.27 billion during the year in the form of interest income from fixed income securities, trading gains from the sale of government securities and distribution and brokering fees.
The investment banking group produced a total fee income of P512 million, 7 percent higher than the previous year as FMIC participated in various transactions such as the P3.16-billion initial public offering of Century Pacific Food Inc. and the P33.3 billion ($750 million) lending facility of Pagbilao Energy Corp.
The investment Advisory & Trust Group generated P32 million in advisory and trust fees, 10 percent higher than year-ago level.
Net earnings from subsidiaries and affiliates hit P1.18 billion. First Metro Asset Management Inc. and the mutual funds generated net revenue of P515 million followed by AXA Philippines which contributed P343 million; Orix Metro Leasing with P154 million; PBC Capital with P74 million and First Metro Securities Brokerage Corp. with P52 million. Doris C. Dumlao