First Capital holds strong despite economic challenges

First Capital Holdings PLC (the Group), has reported a Profit after Tax of Rs. 235 million for the quarter ended 31 December 2021 whilst for the nine months turnover was Rs. 1.43 billion and a loss after tax was Rs. 69 million. 

The Group’s Corporate Finance, Wealth Management and Stock Brokering businesses were the key drivers of these results during what was a particularly challenging period for the market at large. The profits include a reversal of over provision of income tax amounting to Rs. 149 million.

First Capital’s Corporate Finance division reported a Profit after Tax of Rs. 47 million for the nine months ended 31 December 2021. This includes fee income on structuring and placement of corporate debt securities of Rs. 36 million and trading gains of Rs. 84 million on sale of corporate debt and equity securities.

The Group’s Wealth Management division reported a Profit after Tax of Rs. 77 million for the same period. The business unit had assets of Rs. 44.9 billion under its management as of 31 December 2021.

The Stock Brokering division recorded a Profit after Tax of Rs. 176 million for this nine-month period.

The Primary Dealer division recorded net interest income of Rs. 357 million for the same period. However, a trading loss of Rs. 809 million on sale of government securities incurred by the business unit drove it to conclude this period with a Loss after Tax of Rs. 361 million. 

Trading and marked losses on the government securities portfolio incurred by the Group’s Primary Dealer division had an adverse impact on the overall bottom line. This was primarily caused by the upward shift in the yield curve due to the unanticipated tightening of monetary policy in mid-August 2021.