Favorable business environment boosts FMIC's Q1 earnings

A favorable business and economic environment helped push the consolidated net income of First Metro Investment Corp. (FMIC) to P2.3 billion in the first quarter of the year, from P979 million, the investment bank said Tuesday. The first quarter results was the best for the investment banking arm of the Metrobank group in years. “We are very happy with our first quarter results as this is one of the best quarters we’ve had in years.  This early, all our strategic business units contributed significantly to our bottom line," Roberto Juanchito Dispo, First Metro president, noted in an e-mailed statement. "We attribute our good performance to the country’s favorable macroeconomic environment that opens up a lot of opportunities and allows us to strengthen our franchise and continuously deliver unmatched services to our clients,” Dispo said. He noted that the investment grade rating from debt watcher Fitch Ratings last month gave much in terms of looking forward to better prospects the rest of the year, saying the country now has a “much improved fiscal position, massive liquidity inflows, benign  inflation, and an equities market that continues to soar and roar. “The rest of the year certainly looks very positive for the domestic capital markets, which we intend to take advantage of,” Dispo added. The investment bank's Treasury Group contributed the largest share of the profit, earning P1.1 billion in the first three months, up 126-percent from P478.0 million, largely on interest income from fixed rate portfolio and trading gains from the sale and redemption of government and private securities. Fee-based income from securities also boosted the Treasury Group's earnings.    A fee income of P168 million was generated by the Investment Banking Group, up 100 percent from its P84.0 million.   Notable transaction in January to March included Beacon Electric Asset Holdings Inc.’s P17 billion corporate notes, Megawide Construction Corp.’s P4 billion notes facility deal; Philippine Business Bank’s P3.192 billion initial public offering, GT Capital Holdings Inc.’s P10 billion fixed rate bonds, and Toledo Power Co.’s P7 billion project loan facility, according to First Metro Investments.   Its Strategic Finance registered P96 million in net income, up  129 percent from P42 million.   The Investment Advisory Group reported P216 million in net trading gains and dividend income from investments in stocks, up 232percent from P65 million.   The investment bank’s consolidated assets stood at P86.5 billion. — VS, GMA News