More deals triple profits of Metrobank's investment banking unit

The Metrobank Group’s investment banking unit tripled its profits for the first half after securing lead roles in helping Philippine companies raise cash for their needs, the company said in a disclosure. First Metro Investment Corp. (FMIC) recorded a 288.02 percent growth during the first half to P556.8 million from P143.5 million the same period last year, the company said. Earnings from investment banking activities – which include helping companies raise cash by selling debt papers – reached P197.6 million, a record 86 percent growth. Among its deals were the P38.8-billion fixed rate bonds of San Miguel Corp., the P16-billion project loan facility of Cebu Energy Development Corp., the P5-billion Philippine Long Distance Telephone Co. (PLDT) fixed rate notes, the P3-billion Metrobank Card Corp. fixed rate notes, the P5-billion fixed rate bonds of Globe Telecom Inc., and P3-billion Aboitiz Power Corp. fixed rate bonds. Meanwhile, income from treasury operations – earned from the trading of government securities – reached P1.26 billion. Interest income rose 32 percent due to higher average volume of securities portfolio at P27.2 billion from P17.7 billion. As the bellwether Philippine Stock Exchange index (PSEi) improved to 2,437 in June from 1,872 in January, FMIC’s stock investments swung to P96.7 million from P165.4 million losses. Gains from stocks amounted to P262.1 million. The Philippines is not “entirely out of the woods yet as financial dislocations globally are still in the cards," FMIC president Francisco Sebastian said. “Locally, our concerns are the budget deficit, the possible reversal of the low inflation environment and into the second half, increasing political tension with the 2010 elections." - GMANews.TV