Colombo 16th November 2017 First Capital Holdings PLC (the Group) recorded a profit after tax of Rs. 731Mn for the 1st half of 2017/18, a substantial increase compared to Rs. 406Mn in the corresponding period of the previous year. Total comprehensive income for the 1st half was Rs. 641Mn (2016/17 – Rs. 406Mn).
The primary dealer business dominated the Group’s earnings reporting a profit after tax of Rs. 538Mn for the 1st half (2016/17 – Rs. 371Mn), displaying an impressive performance. First Capital Treasuries PLC capitalized on opportunities created by declining interest rates in the secondary market, realizing significant trading gains. With a track record of over 25 years, the Company was the first licensed primary dealer appointed by the Central Bank, and is also the only listed and rated primary dealer in Sri Lanka, with a capital base of Rs. 2.2Bn.
A strategic approach has led to improved activity in the corporate finance business, mobilising Rs. 13Bn for clients through structuring and placement of corporate debt securities and recording a fee income of Rs. 42Mn (2016/17 – Rs. 30Mn) during the period under review.
First Capital Asset Management Limited recorded a substantial growth in funds under management to end with Rs. 6.7Bn as at 30th September2017.
The Group’s equity arm, First Capital Equities took several steps to strengthen its business by establishing strategic partnerships with brokering houses based in Asia and the United States, in addition to reinforcing its local efforts through the Group’s expanding branch network.
“Whilst we are pleased with our performance to date, we expect earnings to moderate in the 2nd half with interest rates stabilizing resulting in lower trading opportunities for the primary dealer business” said Director / Group CEO, Dilshan Wirasekara.
“However, we will continue to work throughout the year towards ensuring that our fundamentals remain strong to sustain our business in the long term. Our main focus is to enhance the fee-based activities and the management of risk” concluded Wirasekara.
The credit rating of First Capital Holdings PLC and First Capital Treasuries PLC was reaffirmed by ICRA Lanka Limited in October 2017 at “A-”.
First Capital is an investment bank offering independent advice and transaction execution relating to capital raising and other strategic needs including mergers and acquisitions for investment in Sri Lanka. The Company’s industry leading transactions are reflective of the ingenuity in enabling the most opportune financing processes for our clients. First Capital’s services for investment in Sri Lanka include a total service for public offers of corporate debt, acting in the capacity of managers/ financial advisors and placement agents, in addition to due diligence, pre-offer preparation, offer management, distribution strategy and after-market advisory services, initial public offerings, secondary offerings such as rights issues, corporate actions including mandatory and voluntary offers, private placements and at-market placements of listed securities.