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First Capital records Rs. 231 Mn PAT 2016/17

Investment banks in Sri Lanka, Investment banking in Sri Lanka, Investment companies in Sri Lanka, Share market investment in Sri Lanka, Investment in Sri Lanka, Stock brokers in Sri Lanka, Corporate debt structuring in Sri Lanka, Fixed income securities in Sri Lanka, Fixed income bonds in Sri Lanka, Investment bank in Sri Lanka, Margin trading in Sri Lanka, Wealth management in Sri Lanka
Director / Group CEO, Dilshan Wirasekara

Colombo 19th June 2017: First Capital Holdings PLC, a full service investment bank providing a diverse range of advisory services and financial products through its subsidiaries, (First Capital Group) reported a consolidated profit after tax of Rs. 231Mn for the year 2016/17 compared to Rs. 47Mn in the previous year.

The Group’s primary dealer arm, First Capital Treasuries PLC, was the main contributor towards the financial results recording a profit after tax of Rs. 343Mn for the year 2016/17 (2015/16 – Rs. 11Mn) attributed to net interest income and fair valuation gains on government securities. First Capital Treasuries, is the pioneer non-bank Primary Dealer appointed by Central Bank in 1982 and is listed on the Colombo Stock Exchange. Further, the company’s credit rating was reaffirmed by ICRA Lanka as A- with stable outlook.

The capital markets advisory of the Group, First Capital Limited, which specialises in structuring and placement of corporate debt securities, successfully mobilised Rs. 12.4Bn through structuring and placement of corporate debt securities. Despite the above performance First Capital Limited was negatively affected as a result of higher funding cost and fair valuation losses on trading securities.

The performance of the Group’s subsidiaries were further impacted due to damped investor sentiments as a result of the proposed changes to taxation via the budget proposal – 2017.

“Despite the setback experienced in the preceding quarters, the Group is optimistic in its outlook and have planned several calculated improvements to its operations” said Director / Group CEO, Dilshan Wirasekara.

 

First Capital Holdings PLC (the Company or First Capital) is a full service investment bank providing a diverse range of advisory services and financial products.

We currently serve an array of companies, institutions, government agencies, high net worth individuals and retail clients both international and local, who seek truly objective advice, innovative solutions and execution expertise. We operate throughout Sri Lanka via offices in Colombo, Kandy, Matara and Kurunegala. Our global outreach continues to expand through institutional trading and investment product placement.

As a company listed on the Colombo Stock Exchange (CSE) since 1994 (Ticker: CFVF), we exemplify requisite financial transparency and governance standards.

Reflecting credit fundamentals including a robust capital structure, liquidity, risk controls and earnings profile, we are rated A- by ICRA Lanka Limited.

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First Capital Holdings honours stakeholders

First Capital Holdings PLC recently hosted an evening of cocktails to celebrate the ongoing success of its partnerships and fete its stakeholders. Speaking at the reception, Executive Chairperson Manjula Mathews reflected on the company’s sustained growth and thanked those present for their continued support.

“We have achieved considerable progress over the past year thanks to the shared vision of all our stakeholders and propelled by a combination of teamwork, favourable market conditions and financial experience. We are sincerely grateful to our clients and other partners for their unstinting support as we progress on our journey towards becoming Sri Lanka’s leading investment bank.”

Elaborating on the company’s way forward, Mathews noted that the group plans to consolidate and build on the growth momentum of the past year by offering innovative and profitable investment banking solutions. Held at Cinnamon Grand, the reception brought together over 400 guests for a memorable evening of fellowship and entertainment and served as an occasion for the company to show its appreciation towards its regulators, collaborators, clients and members of the media.

The exclusive event provided an opportunity for the group’s senior management to engage and interact with all stakeholders and reaffirm the company’s commitment to strengthen and build on the trust and confidence placed in First Capital. During the first half of the financial year 2014/15, First Capital Holdings PLC reported profit after tax of Rs.868 million and received an upgrade in its national long-term and short-term corporate credit rating to A- /P2.

The company achieved several milestones such as the launch of a ‘Platinum Bond’ – the first-ever long-term repo investment product, pioneering the first ever microfinance-backed securitization and the introduction of three new unit trusts including a gilt-edged and money market unit trust. The First Capital Wealth Fund was lauded as the best performing fixed income unit trust over the past 12 months, with returns of over 25 percent. The corporate structuring arm of the company is accredited with the management of a landmark AAA-rated debenture, while First Capital Treasuries is currently the market leader in its niche, among standalone primary dealers.

Keenly attuned to the market and strengthened with a strong group research unit, First Capital Holdings PLC has recently added finance advisory services to its range of services in order to cater to the diverse needs of its clientele and provide superior investment banking solutions. 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 has a network of branches in Colombo, Matara, Negombo, Kandy and Kurunegala and is equipped with nearly three decades of experience in financial services.

First Capital Holdings Conducts Investor Awareness Forum in Kandy

Colombo, 26th August 2014:

An Investor Awareness Forum for regionally based corporative societies and entrepreneurs in Kandy and Kurunegala was organized by First Capital Holdings recently. The knowledge sharing session, which was held in Kandy, highlighted key developments and trends in the financial market while equipping investors with pivotal information pertaining to future investment decisions.

The audience was taken through the gamut of investment options available for potential investors and the process of creating, protecting and maximizing their money through secure investment instruments. A panel of speakers stressed the importance of taking a structured approach when analysing financial objectives and mapping out investment strategies and goals and expanded on the various types of Unit Trusts and its operating mechanisms.
Further, the benefits of having the expertise of a Fund Manager attuned to the current investment environment and its variables, while interacting regularly with the market, were drawn out. The audience was also taken through the intricacies of the stock market and its past and present economic fluctuations. Also speaking to the audience, Adrian Perera – CEO of Lanka Rating Agency, differentiated between Market Rating and Credit Rating and advised the audience on some rudimentary pitfalls to avoid when formulating investment decisions.

“This is a rare opportunity for us as awareness programmes of this nature are unusual in this part of the island. We gained a large amount of information about the workings of the stock exchange,” said Prabath Chandana from Sanasa – Polgahawela, a participant at the event, adding that it would benefit them greatly in all future financial decisions. The interactive forum encouraged participation and queries by the audience in order to demystify the workings of key investment tools and build awareness about the current market.
“It is imperative that investors are armed with accurate and clear knowledge to keep up with the dynamic nature of the financial market and we take a hands-on approach in making sure that they remain ahead of the curve. Building sustainable and mutually rewarding relationships is at the crux of all our activities,” said Dilshan Wirasekara, Deputy CEO of First Capital Holdings.

First Capital Holdings has previously held knowledge sharing sessions in Matara and has a network of branches spanning Matara, Negombo, Kandy and Kurunegala, for the convenience of its growing clientele. The company possesses over 30 years’ experience in financial services, is equipped with strong group research units and professionally qualified staff to extend their expertise and customize investment solutions in accordance with individual client’s and corporates’ needs. First Capital Holdings remains firmly committed to stringent corporate governance practices and combines innovation and efficiency to raise the bar for its level of service.

First Capital Holdings posts healthy profits

Colombo, 13 May, First Capital Holdings PLC has posted a healthy profit after tax for the financial year 2010/2011 of Rs. 990,260,000 compared to Rs. 682,244,000 for the previous financial year. Profits for the quarter ended 31 March 2011 were Rs. 81,299,000 an improvement on Rs. 41,264,000 for the same period the previous year. Earnings per share were Rs. 10.03 whilst Net Assets Per Share stood at Rs. 15.04.

“In the last couple of years, we have seen exceptional profit growth at First Capital,” a Company official said. “In 2010/11 although conditions were less conducive than those in the previous year in which a highly favourable bond trading environment resulted in exceptional profits by the Group’s primary dealer arm, the Company was able to sustain its momentum helped by strong performance in all areas.”

He went on to explain that reported profits were boosted by a one-off gain from the sale of an associate company – Kotmale Holdings PLC amounting to Rs. 180 million and a decision in the company’s favour by the Inland Revenue Board of Review resulting in a tax reversal of Rs. 444 million. He affirmed that First Capital was gearing up for measured and steady growth.

“First Capital Wealth Fund – a Unit Trust dedicated to investment in fixed income securities was launched and the company was granted a license to function as a Dealer on the Debt Exchange (DEX). Promotional campaigns and initiatives to further broad-base the services of the Group are on the cards,” he added.

The First Capital Group boasts of a rich pedigree in the Sri Lankan financial services arena with its lineage tracing 28 years. Having obtained its Primary Dealership license in 1992, when the Central Bank formed the Primary Dealership system, First Capital Treasuries has steadily grown to become a strong and resilient front runner with a loyal and widening customer base. With pioneer status in this area, aided by an unblemished reputation, First Capital Treasuries has developed strong bonds with its principal business partners which are commercial banks, other primary dealers and investors both big and small.

First Capital Asset Management Limited under license from the Securities and Exchange Commission, functions as an ‘Investment Manager’ and has mobilised a substantial quantum of funds under management on discretionary mandates. Upon being approved by the SEC to manage Unit Trusts, the company launched First Capital Wealth Fund in October 2010.

First Capital Markets is an SEC approved Margin lender for listed equity. It has, over the years, built up a strong client base. With the recent surge in the share market, this area has featured as a prominent contributor in the performance of the group.

First Capital Limited is actively involved in structuring and underwriting both short term and long term corporate paper and in generating placements on these and other secondary market debt instruments. The company has positioned itself as a debt market specialist by creating a ready marketplace for those seeking investments in debt securities and those vying to borrow from the debt capital markets.