First Metro profit surges to P11.54-B in 2013


Posted at Feb 26 2014 04:56 PM | Updated as of Feb 27 2014 12:56 AM

MANILA, Philippines - First Metro Investment Corp. (FMIC) reported its consolidated net income surged 253% to P11.54 billion in 2013.

"The year 2013 is truly a banner year for First Metro given our strong income. What makes it even more special is that it may probably go down in the history books as the highest income level ever produced by an investment bank in the country. This solid and strong income performance result clearly strengthens our capital base, helping us to ensure that the company can face the regulatory changes starting this year," First Metro chairman Francisco Sebastian said in a statement.

FMIC, the investment banking arm of the Metrobank Group, said the Treasury Group recorded P4.29 billion income in 2013, 252% higher than last year's income of P1.22 billion. The strong growth was driven by interest income from fixed income securities, trading gains from the sale of government securities, distribution fee income and brokering fee.

At the same time, the Investment Banking Group reported a total fee income of P479 million, P130 million higher than the previous year's income. Most of the revenue was generated through deals such as the P3.19 billion IPO of Philippine Business Bank; the P17 billion and P9 billion corporate notes facility of Beacon Electric Asset Holdings, Inc.; and the P24 billion project loan facility of Therma South Inc.-Aboitiz Power Company.

As of December 31, 2013, First Metro's assets as stood at P82.77 billion. Capital funds reached P18.89 billion, 27% higher than the 2012 year-end balance of P14.87 billion. Capital adequacy ratio remains healthy at 23.13% under Basel 3.

"The year 2013 is indeed a very good year for us that will be difficult to replicate. 2014 is a different challenge to us, but we are confident that the company will remain strong and the business will continue to flourish,"First Metro president Roberto Juanchito Dispo said.