First Capital Holdings records Rs 823 mn PAT for 6 months
First Capital Holdings PLC (the Group) recorded a Profit After Tax of Rs.823 million for the six months ended September 30, 2022 compared to Loss After Tax of Rs. 303 million in the corresponding period of the previous year.
The Primary Dealer division reported a Profit After Tax of Rs. 1.1 billion for the six months ended September 30,2022 (2021/22 – Loss After Tax of Rs. 414 million). The Results include net interest income of Rs. 919 million and a trading gain on sale of government securities amounting to Rs. 281 million (2021/22 – Net interest income of Rs. 242 million and a trading loss of Rs. 470 million were included).
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 reported a Loss after Tax of Rs. 375 million for the six months ended September 30, 2022 (2021/22 – Rs. 15 million).
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 reported a Profit After Tax of Rs. 21 million for the six months ended September 30, 2022 (2021/22 – Rs. 47 million). The assets under management of the division stood at Rs. 36 billion as of September 30, 2022 (March 31, 2022 – Rs. 41.2 billion).
The Stock Brokering division recorded a Profit After Tax of Rs. 67 million for the six months ended September 30, 2022 (2021/22 – Rs. 94 million). “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 digitised processes, strengthened knowledge development and enhanced visibility and customer support to deliver service excellence to optimize on the demand for government securities,” said Dilshan Wirasekara – Director, Chief Executive Officer, First Capital Holdings PLC.