First Capital posts Rs 868m PAT in 1H
First Capital Holdings PLC reported a consolidated turnover of Rs.
1.7 billion for the first half of the financial year 2014-15 while
consolidated profit after tax of the Group increased to Rs. 868 million,
compared to Rs. 95 million, reported in the corresponding period of the
CEO, First Capital, Dilshan
The group's primary dealer arm, First Capital Treasuries Limited, was
a notable contributor towards the financial results.
"Favourable macro-economic factors such as a decline in secondary
market interest rates, high market liquidity and low inflation created
opportunities for growth," said CEO of First Capital Holdings, Dilshan
"First Capital Treasuries, which is a non-bank Primary Dealer
appointed by Central Bank, analysed yield curve movements and earned
exceptional returns through a combination of trading expertise and
extensive research," he said.
First Capital Limited, which specialises in structuring and placement
of corporate debt securities, successfully raised funds over Rs. 7
billion through listed debentures, asset backed securitisations and
other corporate debt securities. During the first half of 2014-15, the
group's Wealth Management and Unit Trust, First Capital Asset Management
Limited, displayed a 200% increase over the previous year.
The division's total assets under management surpassed Rs. 3.2
billion.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 maintaining its position as the best performing fixed income unit
Consistent with a surge in the performance of the Colombo Stock
Market, First Capital Equities (Pvt)
Limited, the stock broking arm of the group, also contributed
positively to Group 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
With interest rates at historical lows, the opportunities for
exceptional gains are limited and our focus will be on managing risk and
maintaining acceptable income levels," he said.
"The Group will continue to build on the growth momentum across all
its subsidiary businesses while expanding on corporate advisory and
broader investment banking services," Wirasekara said.
First Capital Asset Management also extended its range of products by
launching three new funds - 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