First Capital Holdings records Rs.823mn profit in first half

First Capital Holdings PLC recorded a profit after tax (PAT) of Rs.823 million for the six months ended on September 30, 2022, compared to the loss after tax of Rs.303 million in the corresponding period of the previous year.  

The primary dealer division reported a PAT of Rs.1.1 billion for the period, compared to a loss of Rs.414 million a year ago. The results include a net interest income of Rs.919 million and a trading gain on sale of government securities amounting to Rs.281 million, compared to a net interest income of Rs.242 million and a trading loss of Rs.470 million a year ago. 

As at September 30, 2022, the business division’s held to maturity portfolio reflected a fair valuation loss of Rs.945 million, 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 of the group reported a loss after tax of Rs.375 million for the six months ended on September 30, 2022. Fair valuation loss on dealing securities amounting to Rs.290 million mainly resulted in the loss for the period under review. The wealth management division of the group reported a PAT of Rs.21 million for the six months under review. The assets under management of the division stood at Rs.36 billion as at September 30, 2022, down from Rs.41.2 billion six months ago.

The group’s stockbroking division recorded a PAT of Rs.67 million for the six months, compared to Rs.94 million a year ago. “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 First Capital Holdings PLC Director and Chief Executive Officer Dilshan Wirasekara.