First Capital posts Rs. 1.46 b PAT for 1Q

First Capital Holdings PLC (the Group) the only listed investment bank in Sri Lanka, has continued its growth momentum into the first quarter of 2020 (Q1 2020) recording a Profit after Tax of  Rs. 1.46 b for the quarter ended 30 June 2020, compared to Rs. 581.96 m in the corresponding period of the previous year.  

First Capital Holdings Chairman Nishan Fernando

First Capital Holdings Director/CEO Dilshan Wirasekara

The results are reported on the back of a robust performance for year 2019/20, where the Group posted a Consolidated Profit after Tax of Rs. 1.07 b for the year. First Capital, with an impressive history of over 35 years, currently has total assets of Rs. 32.5 b and Equity of Rs. 4.9 b. “Reflecting on the past three months, what stands out most is the Group’s record-breaking performance, making it without a doubt, the best year to date,” commented First Capital Holdings PLC Chairman Nishan Fernando.

The Group’s Primary Dealer operations were positively impacted by the CBSL’s efforts to revive the economy through monetary policy easing measures to counter the COVID-19 pandemic impact, with the business reporting a Profit after Tax of Rs. 1.36 b for the quarter (2019/20 – Rs. 562 m). 

The Corporate Finance division too recorded notable results, mobilising Rs. 3 b for its clients through structuring and placement of corporate debt securities, generating a fee income of Rs. 25 m for the quarter (2019/20 – Rs. 31 m).

The Wealth Management division of the Group delivered a strong performance reporting a fee income of Rs. 17 m for the quarter (2019/20 – Rs. 11 m) amidst challenges faced during the COVID-19 lockdown period. The division showed a growth in assets under management to end with Rs. 27.9 b as at 30 June 2020 (31 March 2020 – Rs. 26.4 b).

Despite the setback experienced in the first quarter of 2020, with the CSE remaining closed for seven weeks, the Group’s Stock Brokering division recorded revenue of Rs. 14 m for the quarter (2019/20 – Rs. 6 m). 

“Given that COVD-19 is still an ongoing situation, we expect the Government would continue with its current accommodative monetary policy stance for the year 2020,” commented First Capital Holdings PLC Director/Chief Executive Officer Dilshan Wirasekara.

First Capital Holdings PLC is listed on the Colombo Stock Exchange and is rated [SL]A- with stable outlook by ICRA Lanka.