The investment-banking arm of the Metrobank Group saw a hefty increase in its second-quarter profit, after unloading its 20-percent stake in Global Business Power Corp. (GBPC).
First Metro Investment Corp. (FMIC) reported over the weekend that it realized a consolidated net income of P6.8 billion at the end of the first half of 2013.
This, according to the firm, is 247 percent, or P4.8 billion higher than its P1.9-billion profit in the same period last year.
Total assets of the company as of June 30, 2013, stood at P100 billion, P17.5 billion, or 21 percent more than the 2012 year-end figure of P82.5 billion.
FMIC President Roberto Juanchito Dispo explained that the significant increase in the company’s net income was brought about by the gains from the sale of its 20-percent stake in GBPC, and partial unloading of government securities portfolio of P2.97 billion and P2.21 billion, respectively.
Several weeks ago, FMIC concluded a share sale and purchase agreement for 200 million shares in GBPC to ORIX Corp. of Tokyo, Japan, at a price of P7.15 billion.
The Treasury Group of FMIC also made a substantial contribution of P3.1 billion. This is P2.5 billion, or 406 percent more than its income in the same period last year of P621 million.
FMIC also realized a fee income of P214 million, which is P51 million, or 32 percent higher than its P163-million budget.
The group completed a total of 13 deals for the first half, which include the initial public offerings of Philippine Business Bank and Asia United Bank; top-up placements of Megawide Construction Corp. and Cosco Capital Inc.; GT Capital’s P10-billion fixed-rate bonds; Beacon Electric Asset Holdings Inc.’s P17-billion corporate notes; SM Development Corp.’s P6.2-billion fixed-rate corporate notes; Toledo Power Co.’s P7-billion project loan facility and First Pacific FP Finance Ltd.’s $250-million term loan facility, among others.
Capital funds of the company also ended at P24.6 billion, about P9.7 billion, or 65 percent higher than the December 31, 2012, balance of P14.9 billion.
“For the remainder of the year, we will continue to be very active in the investment banking space, as more corporates are becoming more opportunistic in accessing the capital markets for their funding requirements in anticipation of higher rates next year,” Dispo said.
“In preparation for Basel 3, we will continue to unload our nonallied investments and liquidate some of our equity investments,” he added.