First Capital Holdings PLC (the Group) recorded a profit after tax of Rs. 731 million for the 1st half of 2017/18, a substantial increase compared to Rs. 406 million in the corresponding period of the previous year. Total comprehensive income for the 1st half was Rs. 641 million (2016/17 – Rs. 406 million).
The primary dealer business dominated the Group’s earningsreporting a profit after tax of Rs. 538 million for the 1st half (2016/17 – Rs. 371 million), displaying an impressive performance. First Capital Treasuries PLC capitalized on opportunities created by declining interest rates in the secondary market, realizing significant trading gains. With a track record of over 25 years, the Company was the first licensed primary dealer appointed by the Central Bank, and is also the only listed and rated primary dealer in Sri Lanka, with a capital base of Rs. 2.2 billion.
A strategic approach has led to improved activity in the corporate finance business, mobilizing Rs. 13 billion for clients through structuring and placement of corporate debt securities and recording a fee income of Rs. 42 million (2016/17 – Rs. 30 million) during the period under review.
First Capital Asset Management Limited recorded a substantial growth in funds under management to end with Rs. 6.7 billion as at 30th September 2017. The Group’s equity arm, First Capital Equities took several steps to strengthen its business by establishing strategic partnerships with brokering houses based in Asia and the United States, in addition to reinforcing its local efforts through the Group’s expanding branch network.
“Whilst we are pleased with our performance to date, we expect earnings to moderate in the 2nd half with interest rates stabilizing resulting in lower trading opportunities for the primary dealer business,” said Director / Group CEO, Dilshan Wirasekara.