Friday 17 October 2014

Sri Lanka First Capital reports a consolidated turnover of 1.7 billion

Oct 17, 2014 (LBO) - Sri Lanka’s First Capital Holdings PLC reported a consolidated turnover of 1.7 billion rupees for the first half of the financial year 2014/15, the company said in a media release.

The consolidated profit after tax of the Group has increased to 868 million rupees compared to 95 million rupees reported in the corresponding period of the previous year.

Media Statement By First Capital PLC

The consolidated turnover for the period under review is in comparison to 910 million rupees for the same period last year.

The group’s primary dealer arm, First Capital Treasuries Limited, was a notable contributor towards the financial results for the period under review.

“Favourable macro-economic factors such as a decline in secondary market interest rates, high market liquidity and low inflation created significant opportunities for growth in the market.

“First Capital Treasuries, which is currently the leading non-bank Primary Dealer appointed by Central Bank, was able to analyse yield curve movements and earn exceptional returns through an incisive combination of trading expertise and extensive research,” elaborated Dilshan Wirasekara, CEO of First Capital Holdings PLC.

First Capital Limited, which specialises in structuring and placement of corporate debt securities, successfully raised funds over Rs. 7Bn through listed debentures, asset backed securitizations and other corporate debt securities.

Meanwhile during the first half of the financial year 2014/15, the group’s Wealth Management and Unit Trust, First Capital Asset Management Limited, displayed a 200% increase over the previous year-end.

The division’s total assets under management surpassed Rs. 3.2Bn during the period.

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 during the six months under review 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 (Private) Limited, the stock broking arm of the group, also contributed positively to the 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 currently at historical lows, the opportunities for exceptional gains are limited and our focus will be on managing risk and maintaining acceptable income levels. The Group will continue to build on the current growth momentum across all its subsidiary businesses while expanding on corporate advisory and broader investment banking services,” said Dilshan Wirasekara, highlighting the Group’s vision of becoming Sri Lanka’s leading investment bank and its performance thus far.

During the period under review, 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 in order to facilitate knowledge sharing and support the development of the industry.

First Capital Holdings PLC comprises of First Capital Treasuries Limited, First Capital Asset Management Limited, First Capital Equities (Private) Limited, First Capital Markets Limited and First Capital Limited.

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