First Capital posts net profit of Rs. 520.9 m in FY13

Monday, 3 June 2013 00:00 - - {{hitsCtrl.values.hits}}

First Capital Holdings PLC has reported profit after tax of Rs. 520.9 million for the year ending 31 March 2013, in a noteworthy turnaround from a net loss of Rs. 268.5 million at the end of the previous year.

While active trading strategies in the Government securities market generated a gain of Rs. 300 million in the review period, net interest income of Rs. 295 million and fee income of Rs. 40 million enabled the group to quadruple net operating income (before expenses) to Rs. 638 million.

Higher business volumes resulted in a doubling of turnover, and the group, which comprises of four financial services companies, posted profit before tax of Rs. 548.7 million for the year, as against a pre-tax loss of Rs. 253.6 million for 2011-12.

Profit attributable to equity holders of the parent company reached Rs. 490.1 million from a negative Rs. 259.9 million a year previously.

“Clearly, the strength of our capital base, which enables us to carry appropriate long term positions on Government securities, generates above average returns from our primary dealership,” said Jehaan Ismail, CEO of First Capital Holdings. “But we have also generated a noteworthy return from the corporate debt market and are making a name as a full service investment bank.”

He said the group had strengthened its management team in key disciplines during the year under review and moved its offices to a more conveniently located downtown address in Colombo to better serve its growing client base.

Consequent to its significantly improved performance, earnings per share of First Capital Holdings increased to Rs. 4.84 from a loss per share of Rs. 2.57 in 2011-12. One of the best performing non-bank financial service providers in 2012-13, First Capital Holdings comprises of First Capital Limited, First Capital Treasuries Limited, First Capital Markets Limited and First Capital Asset Management Limited. The group raised a noteworthy Rs. 6 billion for a diverse group of clients through commercial paper, debentures and securitisations in the year reviewed.

The group has recently acquired a 70% stake in a stock broking firm and states that this should enhance its revenue stream from equity based businesses in 2013/14.

The financial statements (unaudited) of the company for the year ended 31 March 2013 have been prepared and presented in accordance with new volume of Sri Lanka Accounting Standards (SLFRS/LKAS) which has become applicable for financial periods beginning on or after 1 January 2012.