First Capital Holdings PLC recorded a Profit after Tax of Rs. 1.66 bn for the nine months ended December 31, 2022 compared to a Loss after Tax of Rs. 68 mn in the corresponding period of the previous year.
The Primary Dealer division reported a Profit after Tax of Rs. 1.9 bn for the nine months ended December 31, 2022 (2021/22 – Loss after Tax of Rs. 361 mn). The Results include net interest income of Rs. 2,152 mn and a trading gain on sale of government securities amounting to Rs. 572 mn (2021/22 – Net interest income of Rs. 357 mn and a trading loss of Rs. 809 mn were included).
As at December 31, 2022, the Business division’s Held to Maturity portfolio reflected a fair valuation loss of Rs. 1.15 bn which is not accounted for in the provisional financial statements since the amortised cost basis is adopted in valuing the said investment as per the accounting standard on financial instruments (SLFRS 9).
The business operates in a challenging business environment due to the prevailing economic conditions. The impact of a potential local debt restructuring is also a continuing concern.
The Corporate Finance and Dealing Securities division reported a Loss after Tax of Rs. 364 mn for the nine months ended December 31, 2022 (2021/22 – Profit after Tax of Rs. 47 mn). Fair valuation loss on dealing securities amounting to Rs. 210 mn mainly resulted in the Loss for the period under review.
The Wealth Management division reported a Profit after Tax of Rs. 22 mn for the nine months ended December 31, 2022 (2021/22 – Rs. 77 mn). The assets under management of the division stood at Rs. 36 bn as of t December 31, 2022 (March 31, 2022 – Rs. 41.2 bn).
The Stock Brokering division recorded a Profit after Tax of Rs. 98 mn for the nine months ended December 31, 2022 (2021/22– Rs. 176 mn).
During the reporting period, a credit ratings of “A” with stable outlook was awarded to First Capital Holdings PLC and First Capital Treasuries PLC (subsidiary)by Lanka Rating Agency (LRA).
The tragic demise of Dinesh Schaffter who served as First Capital’s Managing Director since 2014 prompted appointments to further strengthen the Board of Directors/Senior Management, including the appointment of Manjula Mathews as the Deputy Chairperson and Dilshan Wirasekara as Managing Director and CEO.
“Dinesh’s vision and contribution towards the success of First Capital Group as well as the capital markets industry of Sri Lankan are deeply appreciated and we continue to move forward with our “Performance First” mindset to honour his legacy,” said Dilshan Wirasekara – Managing Director / CEO, First Capital Holdings PLC.
Backed by the Janashakthi Group, First Capital looks ahead with the vision of improving lives of all Sri Lankans through financial solutions and a mission of leading the way in innovative solutions to manage risk and create wealth. The Company will continue building scale and relevance through an evolving digital platform with enhanced digital capabilities, enabling the business to transform client experiences and drive operational efficiency.