First Capital records PAT of Rs. 1.07 b in FY20 amidst challenging market conditions

First Capital Holdings PLC (the Group), the only listed investment bank in Sri Lanka, recorded a Consolidated Profit after Tax of Rs. 1.07 billion for the year 2019/20, amidst negative headwinds that saw Sri Lanka reporting subpar economic growth for the third consecutive year. 

Chairman Nishan Fernando

CEO Dilshan Wirasekara

The results show a significant growth compared to Rs. 8 m in the previous year. First Capital, with an impressive history of over 35 years, has total assets of Rs. 45.6 b and equity in excess of Rs. 4 b.

The Group recorded a Total Comprehensive Income of Rs. 1.04 b for the year, a significant increase from Comprehensive Loss of Rs. 20 m recorded in 2018/19. “Our ability to deliver impressive results even in tough times is a testament to the Group’s robust operating model. I am convinced that the ongoing emphasis placed on strengthening each of our core businesses and firming up their positions within their immediate operating domain has been a critical success factor for the Group,” commented First Capital Holdings PLC Chairman Nishan Fernando. 

The Group’s Primary Dealer contributed Rs. 1.2 b (2018/19 – Rs. 96 m) Profit after Tax for the year, claiming a substantial volume-based market share in both the primary auctions as well as in the secondary market during the financial year.

Capitalising on the potential in the listed and unlisted debt market, the Corporate Finance division mobilised Rs. 42 b for its clients through structuring and placement of corporate debt securities, generating a fee income of Rs. 175 m (2018/19 – Rs. 69 m). 

The Wealth Management division of the Group made remarkable progress to deliver its best financial results to date, reporting a fee income of Rs. 64 m (2018/19 – Rs. 33 m). The division showed a significant growth in its assets under management to end with Rs. 26.4 b as at 31 March 2020 (31 March 2019 – Rs. 5.9 b). 

Furthermore, the company’s benchmark unit trust, the First Capital Money Market Fund was the best-performing unit trust fund in the country in 2019/20.

The Group’s Stock Brokering unit also recorded revenue of Rs. 71 m for the year 2019/20 (2018/19 – Rs. 53 m). 

“While the last 12 months have been challenging for many local businesses, several aspects of our immediate operating environment worked in our favour; we are looking ahead and focusing our efforts on improving efficiency across all businesses to deliver enhanced results to our valued stakeholders’, commented First Capital Holdings PLC Director/Chief Executive Officer Dilshan Wirasekara.

The Group’s [SL]A- credit rating was reaffirmed by ICRA Lanka Ltd., reconfirming the stability of the Group.

First Capital Holdings PLC paid a total dividend of Rs. 9 per share for 2019/20 totaling to Rs. 911 m.