First Capital holds strong despite economic challenges

First Capital Holdings PLC (the Group), a member of the Janashakthi Group, has reported a Loss after Tax of Rs. 413 million for the year ended 31 March 2022, compared to a Profit after Tax of Rs. 2.1 billion in the previous year. 

The Wealth Management and Stock Brokering businesses contributed positively towards the Group’s results during what was a challenging period for the market at large. 

The loss reported during the year was a result of the trading and marked to mark losses incurred on the Government securities portfolio by the Group’s Primary Dealer division. This was due to the significant tightening of monetary policy measures since August 2021.  

The Primary Dealer division of the Group reported a Loss after Tax of Rs. 429 million for the year ended 31 March 2022 in comparison to a Profit after Tax of Rs. 1.8 billion in 2020/21. 

Meanwhile, the Corporate Finance division reported a Loss after Tax of Rs. 232 million for the year ended 31 March 2022 in comparison to Profit after Tax of Rs. 267 million in 2020/21. 

The Wealth Management division reported a Profit after Tax of Rs. 87 million for the year ended 31 March 2022 as against Rs. 77 million in 2020/21. The assets under management of the division stood at Rs. 41.2 billion as of 31 March 2022 from Rs. 45.2 billion recorded on 31 March 2021.  The Stock Brokering division recorded a Profit after Tax of Rs. 230 million for the year ended 31 March 2022 from Rs. 75 million in 2020/21.

The year also saw the credit ratings of First Capital Holdings and First Capital Treasuries PLC being reaffirmed by ICRA Lanka Ltd. at “A” with stable outlook in December 2021. 

Yet another significant milestone for the year was First Capital Treasuries, a subsidiary of the Group and one of Sri Lanka’s leading non-bank primary dealers, being listed on the Diri Savi Board of Colombo Stock Exchange. The listing was managed by the Corporate Finance division of First Capital Ltd.

On 8 April 2022, the shareholders of the company resolved to execute a sub-division of shares by splitting every one existing voting ordinary share into four voting ordinary shares and trading of sub-divided shares was commenced on 5 May 2022.