First Capital Holdings reports : Rs 199m PAT for nine months

Active trading strategies in the Government Securities market and strong gains from structuring and placement issues enabled First Capital Holdings PLC (FCH) to post a net profit after tax of Rs 199 million for the nine months ended December 31, 2012. In a filing with the Colombo Stock Exchange, the Group said Revenue increased by 31% to Rs 1,160 million in the period reviewed. This increase was mainly attributed to above average returns from the company's government securities operations as a result of First Capital's ability to carry appropriate long-term positions due to the strength of its capital base.

The company also raised a noteworthy Rs 5 billion for a diverse group of clients through commercial paper, debentures and securitisations in the nine months reviewed, and has a fourth quarter pipeline of approximately Rs. 6 billion.

First Capital's net profit after tax for the third quarter (October-December 2012) was Rs 86 million compared with a net loss after tax of Rs 220 million in the third quarter of 2011/12.

Earnings per share for the period was Rs 1.84 as against a loss per share of Rs 0.99 in the corresponding quarter of the previous year. Group net assets per share stood at Rs 13.13 as at December 31, 2012.

Commenting on the Group's performance, Chief Financial Officer of First Capital Mangala Jayashantha said, “First Capital's success is largely due to its ability to maximise returns in the bond market by developing large and profitable portfolios and holding favourable positions.”