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 previous year.

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 Wirasekara.

"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 trust.

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 financial year.

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 the island.