First Capital posts net profit of Rs 520.9 mn in 2012-13
First Capital Holdings PLC has reported profit after tax of Rs 520.9
million for the year ending March 31 2013, in a noteworthy turnaround
from a net loss of Rs 268.5 million at the end of the previous year.
While active trading strategies in the Government Securities market
generated a gain of Rs 300 million in the review period, net interest
income of Rs 295 million and fee income of Rs 40 million enabled the
Group to quadruple net operating income (before expenses) to Rs 638
Higher business volumes resulted in a doubling of turnover, and the
Group, which comprises of four financial services companies, posted
profit before tax of Rs 548.7 million for the year, as against a pre-tax
loss of Rs 253.6 million for 2011-12.
Profit attributable to equity holders of the parent company reached
Rs 490.1 million from a negative Rs 259.9 million a year
previously.“Clearly, the strength of our capital base, which enables us
to carry appropriate long term positions on government securities,
generates above average returns from our primary dealership,” said
Jehaan Ismail, CEO of First Capital Holdings. “But we have also
generated a noteworthy return from the corporate debt market, and were
making a name as a full service investment bank.”
He said the Group had strengthened its management team in key
disciplines during the year under review and moved its offices to a more
conveniently located downtown address in Colombo to better serve its
growing client base.
Consequent to its significantly improved performance, earnings per
share of First Capital Holdings PLC increased to Rs 4.84 from a loss per
share of Rs 2.57 in 2011-12.
One of the best performing non-bank financial service providers in
2012-13, First Capital Holdings comprises of First Capital Limited,
First Capital Treasuries Limited, First Capital Markets Limited and
First Capital Asset Management Limited. The Group raised a noteworthy Rs
6 billion for a diverse group of clients through commercial paper,
debentures and securitisations in the year reviewed.
The Group has recently acquired a 70 percent stake in a stock broking
firm and said that this should enhance its revenue stream from equity
based businesses in 2013/14.