MANILA, Philippines - First Metro Investment Corp. said on Thursday its consolidated net income grew 41 percent to P3.1 billion last year from P2.2 billion in 2011.
First Metro, in a statement, also reported that return on equity stood at 23.9 percent.
Roberto Juanchito T. Dispo, First Metro president, said 2012 proved to be another record breaking year for the company, not only in terms of financial returns, but also in terms of contribution to the Philippine capital market.
Dispo said they have once again upheld their dominant position by successfully participating in 60.5 percent of the total capital market transactions amounting to P625.6 billion last year, a proof of their leadership, innovation and service excellence.
First Metro said its Treasury Group alone made a solid P1.22-billion income for the period, P41 million higher than last year’s income of P1.18 billion.
First Metro added that net interest income from Treasury portfolio is P342 million, driven by higher level of securities portfolio, while gains from securities trading reached P824 million. Income from securities distribution totaled P94 million.
First Metro said its Investment Banking Group generated a total fee income of P349 million, P74 million more than in the previous year.
The bulk of this revenue was generated through various significant deals that included GT Capital’s P21.567-billion initial public offering (IPO), Ayala Corp.’s P10-billion fixed-rate bonds, SM Investment Corp.’s P15-billion fixed-rate bonds, Ayala Land’s P15-billion fixed-rate bonds, Smart Communications’ P5.5-billion fixed-rate corporate notes, Rockwell Land’s P10-billion fixed-rate corporate notes, and San Miguel Corp.’s P80-billion preferred shares, to name a few.
First Metro said it also participated in the Bureau of Treasury’s fund-raising in 2012, and was co-issue manager in the $500-million onshore dollar bonds and the P188-billion 25-year retail Treasury bond (RTB), and was joint issue manager in the P179.8-billion 15- and 20-year RTBs.
First Metro said the Strategic Finance Division earned a net interest income of P178 million in 2012, P10 million higher than last year’s result.
It added that the Investment Advisory Group realized P284 million in trading gains and dividends from investments in stocks, an increase of 647-percent increase from only P38 million in 2011.
First Metro said the subsidiaries and affiliates contributed significantly to the bottom line through the share in their net earnings totaling P2 billion.
First Metro’s assets at the end of the year stood at P82.4 billion, 4.6 percent more than the year-end balance in 2011 of P78.8 billion. Capital funds reached P14.9 billion, 30 percent higher than the 2011 year-end level.
“We are confident that the year 2013 will again prove to be another good year as we anticipate the country’s breakout year and imminent upgrade to investment grade status. Our company as a matter of business strategy will take advantage of the numerous opportunities that will come our way but will remain optimistically cautious.” Dispo said.