First Capital Holdings PLC (the Group) recorded a Profit after Tax of Rs. 823 mn for the six months ended September 30, 2022 compared to a loss after tax of Rs. 303 mn in the corresponding period of the previous year.
The Primary Dealer division reported a Profit after Tax of Rs. 1.1 bn for the six months ended September 30, 2022 (2021/22 – Loss after Tax of Rs. 414 mn). The results include net interest income of Rs. 919 mn and a trading gain on sale of government securities amounting to Rs. 281 mn (2021/22 – Net interest income of Rs. 242 mn and a trading loss of Rs. 470 mn were included).
As at September 30, 2022, the Business division’s Held to Maturity portfolio reflected a fair valuation loss of Rs. 945 mn which is not accounted for in the provisional financial statements since the amortised cost basis has been 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 significant concern.
The Corporate Finance division reported a Loss after Tax of Rs. 375 mn for the six months ended September 30, 2022 (2021/22 – Rs. 15 mn). Fair valuation loss on dealing securities amounting to Rs. 290 mn mainly resulted in the loss for the period under review.
The Wealth Management division reported a Profit after Tax of Rs. 21 mn for the six months ended September 30, 2022 (2021/22 – Rs. 47Mn). The assets under management of the division stood at Rs. 36 bn as of September 30, 2022 (March 31, 2022 – Rs. 41.2 bn).
The Stock Brokering division recorded a Profit after Tax of Rs. 67 mn for the six months ended September 30, 2022 (2021/22 – Rs. 94 mn).
“Despite the ongoing challenges we have continued to show much strength and resilience this year, while continuing our commitment to serve our stakeholders and deliver our promise of ‘performance first’. We digitalised processes, strengthened knowledge development and enhanced visibility and customer support to deliver service excellence to optimise on the demand for government securities. We have also looked at our business from many different angles, considering our purpose, processes, people, and brand, and striving to infuse new energy into each of these areas,” said Director and Chief Executive Officer, First Capital Holdings, Dilshan Wirasekara.
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.