First Capital Holdings reports major growth for first half of FY 2014/2015

Monday, 20 October 2014 00:00 - - {{hitsCtrl.values.hits}}

First Capital Holdings Plc reported a consolidated turnover of Rs. 1.7 b for the first half of the financial year 2014/2015, while consolidated profit after tax of the group has increased to Rs. 868 m, compared to Rs. 95 m reported in the corresponding period of the previous year.

The consolidated turnover for the same period was Rs. 910 m last year. The group’s primary dealer arm, First Capital Treasuries Ltd., was a notable contributor towards the financial results for the period under review. “Favourable macro-economic factors such as a decline in secondary market interest rates, high market liquidity and low inflation created significant opportunities for growth in the market. First Capital Treasuries, which is currently the leading non-bank Primary Dealer appointed by the Central Bank, was able to analyse yield curve movements and earn exceptional returns through an incisive combination of trading expertise and extensive research,” elaborated First Capital Holdings Plc CEO Dilshan Wirasekara. First Capital Ltd., which specialises in structuring and placement of corporate debt securities, successfully raised funds over Rs. 7 b through listed debentures, asset-backed securitisations and other corporate debt securities. Meanwhile, during the first half of the 2014/15 financial year, the group’s Wealth Management and Unit Trust, First Capital Asset Management Ltd., displayed a 200% increase over the previous year-end. The division’s total assets under management surpassed Rs. 3.2 b during the period. With a return of 25.23% p.a. over the 12 months ended September 2014, First Capital Wealth Fund continued to steadily outperform the market during the six months under review, maintaining its position as the best performing fixed income unit trust. Consistent with a surge in the performance of the Colombo Stock Market, First Capital Equities Ltd., the stock broking arm of the group also contributed positively to the group’s results. “We are pleased with our performance to date but expect profits from the primary dealer arm to be more modest during the second half of the financial year. With interest rates currently at historical lows, the opportunities for exceptional gains are limited and our focus will be on managing risk and maintaining acceptable income levels. The group will continue to build on the current growth momentum across all its subsidiary businesses while expanding on corporate advisory and broader investment banking services,” said Dilshan Wirasekara, highlighting the group’s vision of becoming Sri Lanka’s leading investment bank and its performance thus far. During the period under review, First Capital Asset Management also extended its range of products by launching three new funds – the First Capital Fixed Income Fund, First Capital Gilt Edged Fund and First Capital Money Market Fund. With renewed interest in the Unit Trust industry, First Capital Asset Management also conducted multiple investor awareness programs around the island in order to facilitate knowledge-sharing and support the development of the industry. First Capital Holdings Plc comprises First Capital Treasuries Ltd., First Capital Asset Management Ltd., First Capital Equities Ltd., First Capital Markets Ltd. and First Capital Ltd. The company’s Board of Directors comprises Executive Chairperson Manjula Mathews, Managing Director Dinesh Schaffter and Nihara E. Rodrigo, Eardley Perera, Minette Perera, Nishan Fernando and Chandana de Silva as independent directors.