Saturday 15 March 2014

NDB Capital Holdings grows investment banking & wealth management portfolios

NDB Capital Holdings PLC (NCAP - previously Capital Development Investment Company or CDIC), has closed the year ended December 31, 2013 with group revenue of Rs.1.47 billion, up 85% from a year earlier and an after-tax profit of Rs.932 million, up 21% from the previous year, its recently released annual report said.

At company level revenue was up 41% to Rs.784 million and after-tax profit up 40% toRs.681 million.

The company is almost wholly owned by the NDB holding 99.62% of its equity with the balance held by 308 other shareholders most of whom own less than 1,000 shares.

The Chairman of NCAP, Mr. A.K. Pathirage has reported that they were able to deliver a sterling performance during the year generating attractive returns for their shareholders.

He expected that the proposed new Securities and Exchange Commission Act will set a solid foundation ensuring a level playing field with greater efficiency, transparency and accountability.

"I commend the Colombo Stock Exchange and the Securities and Exchange Commission for their initiatives to grow the market in a sustainable manner," he said.

Pathirage said that some key milestones including the pivotal positioning of their investment bank in the debenture market had been accomplished and they had further consolidated market leadership in their wealth management business.

A dividend of Rs.8.50 per share had been declared for the year.

NCAP divested its stake in Aviva NDB Insurance in the previous year and it also bought back shares held by minority shareholders.

Mr. Vajira Kulatilaka, CEO of the company said they had a significant presence in capital market transactions with their investment banking arm playing a major role in the surge of debenture issues seen recently.

The growth of this business has been consolidated by the budgetary tax concessions extended to develop the debt market in the country, he said, reporting that NDB Investment Bank had structured and placed ten debenture issues for leading corporates amounting to Rs.29.2 billion.

"This included the largest ever corporate debenture issue in the country of Rs.10 billion placed and managed for our parent, NDB, in December 2013," he said.

Kulatilaka also reported that their wealth management arm, NDB Wealth Management Limited, had exceeded expectations during the year under review to record an outstanding performance both in terms of funds collected from institutions and high net worth clients but also in the nascent retail segment.

"NDB Wealth Management continued to lead the industry by being the largest in terms of assets under management which crossed the Rs.65 billion mark," he said.

The unit trust funds has reached Rs.15 billion corresponding to over 29% of funds in the industry making NDB Wealth Management the largest unit trust fund manager in the country.

Kulatilaka also said that during the year concrete plans had been made to lay the initial ground work to set up a USD 50 to 60 million private equity fund and a management company in partnership with a US based global emerging markets investment manager, Zephyr Management LP.

"Our joint venture partner has the expertise and vast experience in implementing this business model in Latin America, Africa and Asia," he said.

"This will no doubt be our strength, not only in obtaining technical know-how but also supporting us to attract investors mainly that of bilateral and multilateral agencies and thereby moving this venture to the heights aspired."

Under the NCAP umbrella there are three subsidiaries, NDB Investment Bank, NDB Wealth Management and NDB Securities.

NDB Investment Bank operates in debt and equity structuring and distribution, corporate restructuring, manages and acquisitions and project financing for both listed and unlisted entities.

NDB Wealth Management is licensed by the SEC to provide wealth management solutions and mutual fund management for institutions and high net worth investors and the retail market.

NDB Securities (Pvt) Limited is a licensed stockbroker of the CSE providing investment advisory and securities trading services.

The directors of NCAP are: Messrs. A.K. Pathirage (Chairman), Sarath Wikramanayake, Rajendra Theagarajah, Indrajit Wickramasinghe, Vajira Kulatilaka (Director/CEO), Malinga Arsakularatne and Ms. Aruni Rajakarier.
www.island.lk

No comments:

Post a Comment