The Group has reported turnover of Rs. 577 million for the three months ending 30th June 2014, a growth of 17 per cent over the corresponding period of the previous year. Net trading income for the three months increased by 71 per cent to Rs. 254 million.
Capitalising on declining interest rates to boost realised and marked-to-market gains, First Capital posted profit before tax of Rs. 228 million, a growth of 132 per cent over the Rs. 98 million recorded in the first quarter of 2013-14.
Net profit for the quarter reviewed grew by 230 per cent from Rs. 66 million to Rs. 218 million, the Group said in a filing with the Colombo Stock Exchange.
Elaborating on this performance, First Capital Holdings Managing Director Manjula Mathews said the Group’s leading subsidiary First Capital Treasuries Limited had continued to be the main contributor to revenue and profits in the period under review.
The declining interest rates presented opportunities with increased activity across the yield curve contributing to higher trading volumes, she said. All other business units namely, Structuring and Placement of Corporate Debt Securities, Investments in Corporate Debt Securities, Asset Management, Stock Broking and Margin Trading too contributed positively to trading results.
First Capital Wealth Fund was the best performing fixed income unit trust in the country for a consecutive period of three years to 30thJune 2014, she said.
First Capital Treasuries Limited launched a ‘Platinum Bond’– a medium to long term repurchase agreement backed by Government Securities for the first time in Sri Lanka, raising a total fund in excess of Rs. 700 million.
First Capital Holdings PLC declared a final dividend of Rs. 2/- per share totalling Rs. 202.5 million in July 2014 for the financial year 2013/14.
Looking ahead, Ms. Mathews said the Group expects higher market volumes and trading opportunities during the rest of the financial year. More structuring and trading opportunities in Listed Debt are expected as a result of continued tax exemptions as well as lower yields on government securities. She also said that the Group had recorded a profit after tax of around Rs. 400 million in July 2014, taking profit after tax up to 31st July 2014 to approximately Rs. 620 million.
The Group will also increase its focus on corporate advisory and the broader Investment Banking services business in its journey towards achieving its vision of becoming Sri Lanka’s leading investment bank, she added.
Photo - First Capital Holdings Managing Director Manjula Mathews
