Amid great demand from the debt and equity capital markets, the third-quarter net income of First Metro Investment Corp. (FMIC), the investment banking arm of the Metrobank Group, surged by 176 percent to P7.12 billion.
FMIC reported on Wednesday that it realized a consolidated net income of P7.12 billion at the end of the third quarter of 2013. This is 176 percent, or P4.54 billion higher than the P2.58-billion profit it realized in the same period last year.
“The investment bank will continue to be very active in the remainder of the year. There is a mad rush among local firms to raise money from both debt and equity capital markets in anticipation of higher rates beginning next year and possible QE [quantitative easing by the US Federal Reserve]tapering which will depress the equity market,” FMIC president Roberto Juanchito Dispo said.
“We are, in fact, involved in nine major capital markets transactions which are for execution between now and the end of the year,” he added.
The Investment Banking Group of the company generated a fee income of P395 million, which is P99 million, or 33 percent higher than the P296-million income it registered in the same period last year.
Investment banking deals that the company closed for the period included Beacon Electric Asset Holdings Inc.’s P9-billion Corporate Notes; Ayala Land Inc.’s P15-billion fixed rate bonds; Manila Water Co. Inc.’s P5-billion term loan facility; and the Bureau of the Treasury’s P150-billion retail treasury bonds, among others.
As of September 30, 2013, the company’s total resource was at P89 billion, while return on equity stood at 39.98 percent.
Capital funds of FMIC also ended at P19.77 billion, which is P8.91 billion, or 82 percent higher than the December 31, 2012, balance of P10.87 billion.