Financial Review for the quarter ended 30th June 2015
Key Business Highlights
- The company reported consolidated profit after tax of 176Mn for the quarter ended 30th June 2015
- Generated a fee income of Rs. 27Mn in mobilising Corporate Debt Securities during the period
- Realized trading gains in Government Securities amounting to Rs. 77Mn for the quarter
- LKR 7.1Bn assets under management as at 30 June 2015
- Sale of 25% stake in Orient Finance PLC resulting in a capital gain of Rs. 27.5Mn for the quarter
25th August 2015, Colombo, Sri Lanka: First Capital Holdings PLC recorded a consolidated profit after tax of Rs. 176Mn for the quarter ended 30th June 2015.
Consequent to the policy rate reductions in April 2015 the company’s structuring and placement arm First Capital Limited, which specialises in mobilised listed debentures, asset backed securitisations and commercial papers, successfully generated a fee income of Rs. 27Mn during the period under review (2014/15 – Rs. 13Mn). While the group’s primary dealer First Capital Treasuries Limited realised a trading gain of Rs. 77Mn for the quarter, capitalising on prevailing market conditions.
“While we are pleased with our performance to date, we seek to transform the prevailing macro-economic factors to our favour. The Group will continue to build on the current growth momentum across all its subsidiary businesses while expanding on corporate advisory and broader investment banking services,” said Dilshan Wirasekara, highlighting the Group’s vision of becoming Sri Lanka’s leading investment bank and its performance thus far.
Meanwhile during the first half of the financial year 2015/16, the group’s Wealth Management and Unit Trust, First Capital Asset Management Limited, reflected a growth of Rs. 2.9Bn, increasing the division’s total assets under management to Rs. 7.1Bn. With a return of 13.13% for the year ended 30 June 2015, First Capital Wealth Fund continuing its steady performance.
Consistent with the mixed performance of the Colombo Stock Market, as foreign participants exited the market due to political uncertainty the Stockbroking division First Capital Equities (Private) Limited saw lower trading volumes resulting in lower broking income.
Furthermore the company divested its 25% stake in Orient Finance PLC resulting in a capital gain of Rs. 27.5Mn for the quarter. The investment realized a total gain of Rs 260.8Mn, including gains recorded in the previous financial year amounting to Rs. 233.3Mn.
“The Group will continue to engage actively with its customers and use the leadership position and reputation it has established in the marketplace to broaden the scope of its fee-based operations. Whilst primary dealer income will continue to be the strongest component of profits in the short-term, it is our expectation that fee income will grow to be a meaningful contributor in the years ahead.” Concluded Wirasekara.
First Capital Holdings PLC comprises of First Capital Treasuries Limited, First Capital Asset Management Limited, First Capital Equities (Private) Limited, First Capital Markets Limited and First Capital Limited. The company’s Board of Directors comprises of Ms. Manjula Mathews – Executive Chairperson, Dinesh Schaffter – Managing Director, Eardley Perera, Ms. Minette Perera, Nishan Fernando and Chandana de Silva as Independent Directors.
About First Capital :
First Capital Holdings PLC, an Investment Bank listed on the Colombo Stock Exchange, is the holding company of the First Capital Group offering a full range of products and services, through subsidiaries operating in Debt & Equity markets including First Capital Treasuries Limited, a Primary Dealer licensed by the Central Bank of Sri Lanka, First Capital Asset Management Limited, an Investment Manager licensed by the Securities and Exchange Commission of Sri Lanka which also manages several dedicated fixed income Unit Trusts, First Capital Equities Private Limited a licensed Stockbroker and Member of the Colombo Stock Exchange, First Capital Markets Limited a licensed Margin Provider and First Capital Limited, a structuring and placement agent for debt and equity, and provider of corporate finance and advisory services.
For nearly 30 years, the First Capital Group has been a leading non-bank financial institution in Sri Lanka. A pioneer Primary Dealer in government securities, First Capital has steadily grown to become a leader in this field, buoyed by a loyal and continuously growing customer base. The company operates in Colombo and several major cities in Sri Lanka.
First Capital Holdings PLC operates as a subsidiary of Dunamis Capital PLC.