First Capital records Rs 520.9m net profit

First Capital Holdings PLC has reported a profit after tax of Rs 520.9 million for the year ending March 31, 2013, a 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 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 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 CEO of First Capital Holdings, Jehaan Ismail.

Earnings per share of First Capital Holdings PLC increased to Rs 4.84 from a loss per share of Rs 2.57 in 2011-12.

First Capital Holdings comprises First Capital Limited, First Capital Treasuries Limited, First Capital Markets Limited and First Capital Asset Management Limited.

The Group raised Rs 6 billion for a diverse group of clients through commercial paper, debentures and securitisations in the year under review. A spokesman said the Group recently acquired a 70 percent stake in a stock broking firm and added 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 March 31, 2013 have been prepared and presented in accordance with new volume of Sri Lanka Accounting Standards (SLFRS/LKAS).