First Capital Holdings PLC has reported notable growth in performance during the 2014/15 financial year.
The company has recorded a consolidated profit after tax of Rs.997 million for the year 2014/15. The results reflect an increase of 200 percent from the previous financial year.
Reflecting on the results, First Capital Holdings PLC Chief Executive Officer Dilshan Wirasekara said, “We are delighted with our financial performance and remarkable business momentum during the past year and will endeavour to keep raising the bar for investment banking services in Sri Lanka. Our commitment towards becoming the country’s leading investment bank has been validated over the year through our performance, management discipline and perpetual emphasis on ethics.”
First Capital Holdings PLC comprises of First Capital Treasuries Limited, First Capital Asset Management Limited, First Capital Equities (Private) Limited, First Capital Markets Limited and First Capital Limited. The group’s largest subsidiary, First Capital Treasuries Limited, was the prime contributor towards the group’s net earnings (net profit after tax) for this year. First Capital Treasuries Limited capitalized on opportunities arising from the continuous decline in secondary market interest rates and realized net trading gains of Rs.900 million during the period under review. This is a significant increase in comparison to Rs.227 million reported during the previous year. First Capital Treasuries Limited also fortified its long-term capital base (Tier II) through a listed debenture issue of 500 million in the fourth quarter of the financial year.
Recording its highest ever fee income, First Capital Limited mobilized Rs.22 billion through corporate debt for its clients during the financial year under review. The company reported a fee income of Rs.124 million during 2014/15, reflecting almost a 3.2 times growth from the previous year.
First Capital Limited also achieved significant milestones during 2014/15. The company recorded its largest ever listed debenture issue of Rs.5 billion; managed its largest asset-backed securitization of Rs.1 billion and reported its first private equity placement of Rs.100 million. During the year 2014/15, the company became the leader in managing listed corporate debentures through its management of listed debenture issues worth Rs.10 billion.
The group’s other subsidiaries also reflected positive growth over the period under review. The group’s investment management arm, First Capital Asset Management Limited, reported assets under management amounting to Rs.4.2 billion as at March 31, 2015 compared to Rs.1.3 billion the previous year. As per industry reports, First Capital Wealth Fund was recognized as the best performing fixed income fund in Sri Lanka for the second consecutive year, with a return of 15.48 percent (March 31, 2015).
First Capital Equities (Private) Limited displayed a remarkable turnaround in its business, weathering a loss after tax in 2013/2014 and reported a profit after tax in 2014/15. First Capital Markets Limited demonstrated resilience, recording the third highest listed debt (DEX) trades in the Colombo Stock Exchange during 2014. With the acquisition of a stake of 5 percent, Orient Finance PLC became an investment in associate of the company and contributed Rs.11 million to the group’s profit after tax during the year 2014/15. First Capital Holdings PLC paid an interim dividend of Rs.2 per share totalling Rs.202.5 million for 2014/15 in March 2015.
“We are grateful for the trust placed in us by our investor base and the support of all regulatory authorities and governing bodies involved in making 2014/15 a significant year for the company. As we enter the next fiscal year we hope to sharpen our strategic focus and align resources towards achieving more growth in fee-based business operations,” elaborated Wirasekara, outlining the company’s business roadmap for 2015/16.
First Capital Holdings PLC offers a range of investment banking products and services and operates in Colombo, Matara and Kandy. The company’s board of directors comprises of Manjula Mathews - Executive Chairperson, Dinesh Schaffter - Managing Director, Nihara E. Rodrigo, Eardley Perera, Minette Perera, Nishan Fernando and Chandana de Silva as Independent Directors.