The year 2006 was a banner year for First Metro Securities.  The stock market rose by 42% due to good economic numbers and robust corporate profits.  The bullish market environment and increase in market activity brought more commission revenues and capital gains for the company.  During the year, First Metro Securities was also able to launch its online trading system which allows the company’s clients to trade stocks through the Internet.  The company ranked 27^th in terms of stock market value turnover for the year among 131 active trading participants in the Philippine Stock Exchange.

FIRST METRO TRAVELEX INC.
Formerly Thomas Cook (Philippines) Inc.

The year 2006 proved to be a challenging year for the company and the travel industry.  Margins continued to narrow down as airlines cut on incentives and commissions.  This market condition is further reflected on the corporate travel and retail markets which have become more discerning on choosing their travel agents knowing that the Internet option is readily available.

GLOBAL BUSINESS POWER CORPORATION

Global Business Power Corporation (GBPC) serves existing power plants in the country, upgrading and improving the facilities of the power plants, making them more reliable and efficient.  GBPC is currently looking at expanding its power plants in the Visayas to address the looming power shortage in the region and provide more reliable and stable supply of electricity, thereby fueling the economic growth in these key areas.

MBTC TECHNOLOGY, INC.

As the cost-effective technology services provider of the Metrobank Group, MBTC Technology, Inc. (MTI) kept systems running at better than 99% uptime, and developed systems enhancements in support of critical business goals.  MTI delivered two major releases of branch systems, a cash card product for remittance, enhanced retail Internet banking systems, electronic self-service stocks trading, and automation for the law and credit units.  MTI also delivered cash management systems, notably corporate check-writing and bills-payment collection arrangements.

METROBANK CARD CORPORATION

2006 firmly established Metrobank Card Corporation’s reputation as the fastest growing card company in the country.  Cards-in-force (CIF) increased by 45% ending at 745,304 while the industry registered an over-all growth of 20%.  Total Billings grew 46% outpacing the 18% industry growth.  MCC’s financial results for 2006 are equally noteworthy with Net Cardholder Receivables increasing by 49% to Php9.9 B and Revenues and Net Income climbing to Php 3.4B and Php 654M, respectively, up 69.1% and 38.5% from last year.  Amidst this impressive growth, asset quality was maintained as delinquency was kept at 5.5%, one of the lowest in the market.

ORIX METRO LEASING AND FINANCE CORPORATION

ORIX Metro Leasing’s consolidated revenues hit the Php 1 Billion mark in 2006 following a 30% expansion from the prior year due to sustained growth in volume of business and the continued expansion of its car rental subsidiary.  Total resources for the year rose 16% to Php1.7 Billion.  Profitability was likewise robust as the consolidated after-tax net income surged 36% to Php 158.4 Million partly from the expanding presence in the high-margin consumer market and the effective management of funds.  As a result, return on average equity jumped to 21% per annum from 16% in 2005.  While consistently recording strong financial results, ORIX Metro closely managed the quality of its assets as it maintained an NPI ratio of only 1.26%.

PHILIPPINE AXA LIFE INSURANCE CORPORATION

The year 2006 was a landmark year for AXA Philippines. With a staggering growth of 98% in premium income, AXA was able to break the Php 9 Billion barrier --- the second life insurer in the country to do so. With a reported Php 9.06 Billion in premium income, AXA Philippines is projected to break into ‘Top 3’ life insurers of the country. Weighted new business sales in 2006 were at an impressive Php 1.22 Billion, a 69% growth versus the previous year’s Php 721 Million. This output was another company milestone as it was the first time that weighted new business surpassed the Php1-Billion mark. But the highlight for 2006 is the company’s growth in profitability. In 2006, net earnings stood at around P540 Million (unaudited), a 521% growth from Php 87 Million in 2005. Key to the strong performance in 2006 is the bancassurance arrangement with Metrobank.

PHILIPPINE CHARTER INSURANCE CORPORATION

In 2006, owing to the stiff competition among more than 90 non-life insurance companies, characterized by continuous reduction of premium rates on large commercial and industrial risks, the company’s gross premiums decreased by 5% to Php 926.0 Million.  Despite the negative growth on gross premiums, however, the company posted a Php37.0 Million income representing a 14% return on equity compared to only 6% the previous year.  Income is more than twice higher from the previous year’s Php 30.0 Million contributed mainly by underwriting at 58% and the rest from investments.  This was attained as a result of strict implementation of underwriting guidelines and continuous cost cutting measures imposed by management.

SMBC METRO INVESTMENT CORPORATION

With the economy showing signs of an upswing, SMBC Metro Investment Corporation surpassed its targeted net income for the year.  At the close of 2006, it registered a net income of Php 51 Million.  Combined interest income from loans and placements which amounted to Php 63.7 Million, accounted for the bulk of the Company’s revenues.  Fee-based business continued to demonstrate favorable performance as well, contributing Php 23.7 Million in fee income.  SMBC Metro’s resources and capital remained strong at Php 878.4 Million and Php 844.1 Million, respectively.  The Company likewise declared cash dividends for the sixth consecutive year.

In 2007, SMBC Metro would explore strategic initiatives for its operations, with the end-in-view of providing a stronger business framework for the Company.

TOYOTA CUBAO, INCORPORATED

Toyota Cubao, Inc. on its 17^th year maintains its reputation as the dominant player in the vehicle fleet accounts market.  It remains the top seller of Toyota vehicles to multinational and domestic corporations.  Toyota Cubao and Toyota Manila Bay’s consolidated revenues exceeded the Php 5 Billion mark, representing a 9% increase over last year’s Php 4.7 Billion.  In the recently concluded Annual Dealer Conference, Toyota Cubao captured all the major awards for excellence given by Toyota Motors Philippines Corporation, including the most coveted “Outstanding Overall Dealer Performance Award.”

TOYOTA MANILA BAY CORPORATION

In 2006, Toyota Manila Bay Corporation continued to dominate the Toyota vehicle market by selling a total of 3,052 units.  Together with Toyota Cubao, the tandem captured a 16% share of the Toyota network market, the largest among Toyota dealers nationwide.  Despite the decrease in the total automotive industry unit sales, total revenues reached Php2.7 Billion, representing a 7% increase over 2005.  In the recently concluded Annual Dealer Conference, Toyota Manila Bay captured all the major awards for excellence given by Toyota Motors Philippines Corporation, including the most coveted “Outstanding Overall Dealer Performance Award.”

TOYOTA MOTOR PHILIPPINES CORPORATION

In 2006, Toyota Motors Philippines Corporation (TMP) captured the Triple Crown for the fifth consecutive year, for best performance in over-all sales, as well as in passenger cars and commercial vehicles sales.  As the undisputed industry leader, TMP sold a total of 38,258 units, gaining 8.0% growth, despite a modest 3% industry growth.  Toyota also attained a market share of 38.4%, the highest since it started operations.  In the commercial vehicle category, sales increased significantly by 14%, capturing a huge 39.6% share, from 34.6% in 2005, due mainly to strong performance of IMV models. TMP posted a net income of Php 1,598.4 Million for 2006 with 124% growth over 2005.