First Capital reports strong performance despite challenges

First Capital Holdings PLC has recorded a consolidated Profit after Tax of Rs. 1.66 billion for the nine months ended 31 December 2022 compared to Loss after Tax of Rs. 68 million in the corresponding period of the previous year. 

The Primary Dealer division reported a Profit after Tax of Rs. 1.9 billion for the nine months ended 31 December 2022 (2021/22 – Loss after Tax of Rs. 361 million). The Results include net interest income of Rs. 2,152 million and a trading gain on sale of government securities amounting to Rs. 572 million (2021/22 – Net interest income of Rs. 357 million and a trading loss of Rs. 809 million were included). 

As at 31 December 2022, the Business division’s Held to Maturity portfolio reflected a fair valuation loss of Rs. 1.15 billion which is not accounted for in the provisional financial statements since the amortised cost basis is adopted in valuing the said investment as per the accounting standard on financial instruments (SLFRS 9). 

The business operates in a challenging business environment due to the prevailing economic conditions. The impact of a potential local debt restructuring is also a continuing concern.

The Corporate Finance and Dealing Securities division reported a Loss after Tax of Rs. 364 million for the nine months ended 31 December 2022 (2021/22 – Profit after Tax of Rs. 47 million). Fair valuation loss on dealing securities amounting to Rs. 210 million mainly resulted in the Loss for the period under review. 

The Wealth Management division reported a Profit after Tax of Rs. 22 million for the nine months ended 31 December 2022 (2021/22 – Rs. 77 million). The assets under management of the division stood at Rs. 36 billion as of 31 December 2022 (31 March 2022 – Rs. 41.2 billion).

The Stock Brokering division recorded a Profit after Tax of Rs. 98 million for the nine months ended 31 December 2022 (2021/22 – Rs. 176 million).

During the reporting period, a credit rating of “A” with stable outlook was awarded to First Capital Holdings PLC and First Capital Treasuries PLC (subsidiary) by Lanka Rating Agency (LRA). 

The tragic demise of Dinesh Schaffter who served as First Capital’s Managing Director since 2014 prompted appointments to further strengthen the Board of Directors/Senior Management, including the appointment of Manjula Mathews as the Deputy Chairperson and Dilshan Wirasekara as Managing Director/CEO.

 “Dinesh’s vision and contribution towards the success of First Capital Group as well as the capital markets industry of Sri Lankan are deeply appreciated and we continue to move forward with our “Performance First” mindset to honour his legacy,” said First Capital Holdings PLC Managing Director/CEO Dilshan Wirasekara.