First Metro Investment net profit up 31.6% to P1.8B

MANILA, Philippines—The First Metro Investment Corp., the investment banking arm of the Metrobank group, grew its net profit in the first nine months by 31.6 percent year on year to P1.8 billion on robust treasury earnings.

“Similar to the second-quarter result, the treasury group is again the biggest profit driver, contributing P2.8 billion in gross income. This is 14.5 percent, or P352.3 million, higher than the income it generated in the same period of last year,” First Metro president Roberto Juanchito Dispo said.

The treasury income was generated from interest income earned from fixed income portfolio amounting to P1.9 billion, trading gains from the sale of government securities worth P840 million, and other income totaling P38.1 million.

Investment banking fees totaled P356.1 million, 2.2 percent lower than the income generated in the same period in 2010. This quarter’s successful deals involving FMIC included the Bureau of the Treasury’s P323.5 billion domestic debt consolidation program, SM Investment Corp.’s P5-billion fixed rate corporate notes, and Pancake House Inc.’s P800 million fixed and floating rate notes.

“Third quarter turned out to be quite lean in terms of completed deals but between now and the end of the year, we are looking at completing several capital market transactions, which include PLDT, Beacon and our very own First Metro Bonds,” Dispo disclosed.

Total assets as of the end of September stood at P79.5 billion, expanding by 24.2 percent from the end-2010 level.

Capital funds reached P10.6 billion, translating to 16.75 percent in capital adequacy ratio, which is higher than the 10 percent minimum requirement set by the Bangko Sentral ng Pilipinas for non-bank financial intermediaries with quasi-banking function.