Capital Alliance Ltd (CALT), the leading primary dealer in government securities recorded a profit after tax (PAT) of Rs. 555.87 million for the first half of the FY 2014/2015 ending 30 September 2014. Strong partnerships with clients, combined with an in-depth understanding of their needs, helped CALT to consistently add value to all client investments in H1 of 2014. CALT’s strong performance was also a result of the aggressive trading strategy the company adopted, which was supported by favourable market conditions created by the Central Bank of Sri Lanka. More relaxed monetary policies, combined with lower inflation rates and greater liquidity in the market, helped the company perform at its optimum.
With an increase in profitability of 557.03 million from H1 of the previous financial year, CALT has matured into a highly innovative and strategic force in Sri Lanka’s trading arena. The company concentrated heavily on continuous staff training in H1 of 2014, developing a team of dynamic market leaders who are well-equipped to meet the challenges of an ever-changing trading climate. Additionally, a variety of clients from a cross-section of industries joined CALT’s prestigious client portfolio, enabling the business to grow exponentially in a short period of time.
The company reported a net interest income of Rs. 79.28 million, a 4.52 % increase from the same period of the previous year. CALT also recoded total capital gains of Rs. 633.31 million, a drastic increase from the loss of 29.76 million made in the previous first half of the year. CALT also recorded an impressive growth in income from operating activities which was reported at Rs. 712.45 million. Following the momentum of growth, the company’s total assets were valued at Rs. 7.99 billion, an 18% increase from H1 of the previous year. The total shareholder’s fund for the company grew by 101 % to Rs. 1.4 billion and the earnings per share were recorded at Rs. 37.06 and investment in government instruments was noted at Rs. 7.80 billion.
Part of the company’s success in this half of the financial year, is due to its increasing reliance on research. For the period under review, CALT embraced innovative research methods and techniques that helped the company identity and capitalize on more opportunities in the market.
Commenting on the company’s financial performance, Gihan Hemachandra, Chief Executive Officer, CALT stated, “Our team has performed exceptionally well once again in the first half of this financial year, using aggressive strategies, research and well calculated decisions to secure success in the dealing room. At CALT, our employees are our main asset and our clients are our main priority. We invested heavily this year in ensuring that our team was up-to-date with the latest technology, knowledge and expertise in the trading sphere. This level of training helps our team to perform at its very best and also enables us to deliver a world-class service and high returns to our clients. Our core strength is dealing in government bonds and in H1 of 2014; we used these skills to diversify our business into new areas such as corporate debt. By doing this we were able to enhance our trading opportunities and penetrate new markets. We identified new market opportunities in a timely manner and were able to secure high investment returns for our clients. Looking to the future, CALT will focus on further exploring other segments and alternative markets as well.”
Capital Alliance Ltd (CALT) has gradually evolved into a multi-faceted organization offering a sophisticated selection of structured government debt-based instruments including treasury bills, treasury bonds, repurchase agreements and reverse purchase agreements, corporate debt, leverage bond trading and interest rate swaps. CALT is Sri Lanka’s first registered corporate debt dealer in the primary dealer category and is one of six non-bank licensed primary dealers in the country. With an innovative and assertive approach to trading, CALT capitalizes on market trends and developments to secure high returns for its diverse client base. CALT is authorized to distribute fixed income securities to all investor categories including individual, corporate and institutional investors in Sri Lanka.
Capital Alliance Ltd is part of the CAL Group which delivers integrated and customized financial and investment solutions for a diverse portfolio of clients. Other than CALT’s operations in the fixed income securities market, the CAL Group’s service offering also includes investments and wealth management, investment banking and equity broking. This mix of expertise allows CAL to offer integrated and customized solutions to its customers across the entire financial spectrum. The company strives to build lasting relationships with all of its clients, in order to acquire an intimate understanding of their needs and goals. CAL comprises a dynamic team of individuals with extensive local and international market experience. Since its inception in 2000, CAL has built a reputation for itself as a market leader, capable of continuously meeting client expectations and delivering excellence in research, ethical dealing, confidentiality and product innovation.