PROVISIONAL FINANCIAL STATEMENTS
Quarter ended
31 December 2022
FIRST CAPITAL HOLDINGS PLC
REVIEW OF OPERATIONS
First Capital Holdings PLC (the Group) recorded a Profit after Tax of Rs. 1.66Bn for the nine months ended 31 December 2022 compared to Loss after Tax of Rs. 68Mn in the corresponding period of the previous year.
The Primary Dealer division reported a Profit after Tax of Rs. 1.9Bn for the nine months ended 31 December 2022 (2021/22 - Loss after Tax of Rs. 361Mn). The Results include net interest income of Rs. 2,152Mn and a trading gain on sale of government securities amounting to Rs. 572Mn (2021/22 - Net interest income of Rs. 357Mn and a trading loss of Rs. 809Mn was recorded).
As of 31 December 2022, the Business division's Held to Maturity portfolio reflected a fair valuation loss of Rs. 1.15Bn which is not accounted for in the provisional financial statements since the amortised cost basis is adopted in valuing the said investment as per the accounting standard on financial instruments (SLFRS 9).
We are operating in a challenging business environment due to the prevailing economic conditions. The impact of a potential local debt restructuring is also a continuing concern.
The Corporate Finance and Dealing Securities division reported a Loss after Tax of Rs. 364Mn for the nine months ended 31 December 2022 (2021/22 - Profit after Tax of Rs. 47Mn). Fair valuation loss on dealing securities amounting to Rs. 210Mn mainly resulted in the Loss for the period under review.
The Wealth Management division reported a Profit after Tax of Rs. 22Mn for the nine months ended 31 December 2022 (2021/22 - Rs. 77Mn). The assets under management of the division stood at Rs. 36Bn as of 31 December 2022 (31 March 2022 - Rs. 41.2Bn).
The Stock Brokering division recorded a Profit after Tax of Rs. 98Mn for the nine months ended 31 December 2022 (2021/22 - Rs. 176Mn).
First Capital Holdings PLC and First Capital Treasuries PLC (subsidiary) were awarded a rating of "A" with stable outlook by Lanka Rating Agency (LRA) in December 2022.
The tragic demise of Dinesh Schaffter who served as First Capital's Managing Director since 2014 prompted appointments to further strengthen the Board of Directors/Senior Management, including the appointment of Manjula Mathews as the Deputy Chairperson and myself as Managing Director/CEO.
Dinesh's vision and contribution towards the success of First Capital Group as well as the capital markets industry of Sri Lankan are deeply appreciated and we continue to move forward with our "Performance First" mindset to honour his legacy.
(Sgd.)
Dilshan Wirasekara
Managing Director/CEO
Provisional Financial Statements | FIRST CAPITAL HOLDINGS PLC |
Quarter ended 31 December 2022 | |
1 | |
CONSOLIDAED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
For the period
Notes
Income | |
Direct income | |
Direct expenses | |
Net trading income/(expense) | |
Other income | 1 |
Gain on fair valuation of financial assets recognised through profit or loss | |
measured at fair value | |
Operating expenses | |
Administrative expenses | |
Sales and distribution expenses | |
Other operating expenses | |
(Provision)/ Reversal for impairment of financial assets at amortised cost | |
Profit/ (Loss) before tax | |
Income tax (expense)/ reversal | 2 |
Profit/ (Loss) for the period | |
Other comprehensive income | |
Items that will never be reclassified to profit or loss | |
Items that are or may be reclassified to profit or loss | |
Other comprehensive income for the period | |
Total comprehensive income/ (loss) for the period | |
Profit/ (Loss) attributable to: | |
Equity holders of the parent | |
Non - controlling interest | |
Total comprehensive income/ (loss) attributable to: | |
Equity holders of the parent | |
Non - controlling interest | |
Basic earnings/ (loss) per share (Rs.) | 3 |
Figures in bracket indicate deductions. | |
Note: All values are in Rupees '000 unless otherwise stated. |
Group
October ~ December | April ~ December | |||||
2022 | 2021 | 2022 | 2021 | |||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||
4,365,511 | 373,469 | 9,960,551 | 1,434,780 | |||
4,323,184 | 347,598 | 9,830,134 | 1,322,997 | |||
(2,659,050) | (397,736) | (6,734,491) | (1,303,355) | |||
1,664,134 | (50,138) | 3,095,643 | 19,642 | |||
42,327 | 25,871 | 130,417 | 111,783 | |||
97,656 | 337,069 | 162,309 | 144,244 | |||
1,804,117 | 312,802 | 3,388,369 | 275,669 | |||
(222,166) | (163,318) | (494,603) | (404,281) | |||
(4,236) | (5,571) | (11,984) | (15,263) | |||
(238,421) | (27,558) | (452,116) | (58,209) | |||
(6,006) | 2,134 | (24,177) | 4,404 | |||
(470,829) | (194,313) | (982,880) | (473,349) | |||
1,333,288 | 118,489 | 2,405,489 | (197,680) | |||
(495,001) | 116,087 | (744,058) | 129,158 | |||
838,287 | 234,576 | 1,661,431 | (68,522) | |||
- | - | - | - | |||
- | - | - | - | |||
- | - | - | - | |||
838,287 | 234,576 | 1,661,431 | (68,522) | |||
753,322 | 229,655 | 1,459,663 | (51,063) | |||
84,965 | 4,921 | 201,768 | (17,459) | |||
838,287 | 234,576 | 1,661,431 | (68,522) | |||
753,322 | 229,655 | 1,459,663 | (51,063) | |||
84,965 | 4,921 | 201,768 | (17,459) | |||
838,287 | 234,576 | 1,661,431 | (68,522) | |||
1.86 | 0.57 | 3.60 | (0.13) |
Provisional Financial Statements | FIRST CAPITAL HOLDINGS PLC |
Quarter ended 31 December 2022 | |
2 | |
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
Company
For the periodOctober ~ December April ~ December Notes2022 2021 2022 2021 (Unaudited) (Unaudited) (Unaudited) (Unaudited)
Income | 1,121,047 | 237,826 | 2,704,084 | 708,842 | ||||
Direct income | 1,121,047 | 237,826 | 2,704,084 | 708,826 | ||||
Direct expenses | (886,780) | (197,367) | (2,136,535) | (565,948) | ||||
Net trading income | 234,267 | 40,459 | 567,549 | 142,878 | ||||
Other income | 1 | - | - | - | 16 | |||
Gain/ (loss) on fair valuation of financial assets recognised through profit | 6,879 | 38,863 | (203,897) | (16,287) | ||||
or loss measured at fair value | ||||||||
241,146 | 79,322 | 363,652 | 126,607 | |||||
Operating expenses | ||||||||
Administrative expenses | (15,072) | (13,873) | (53,570) | (45,271) | ||||
Sales and distribution expenses | (770) | 2,975 | (1,751) | (599) | ||||
Other operating expenses | (36,839) | (4,855) | (83,785) | (21,507) | ||||
(Provision)/ reversal for impairment of financial assets at amortised cost | 592 | (2,924) | 962 | (1,649) | ||||
(52,089) | (18,677) | (138,144) | (69,026) | |||||
Operating profit | 189,057 | 60,645 | 225,508 | 57,581 | ||||
Share of profit/ (loss) from equity accounted investee (net of tax) | 638,193 | 261,184 | 1,328,816 | (12,447) | ||||
Profit before tax | 827,250 | 321,829 | 1,554,324 | 45,134 | ||||
Income tax expense | 2 | (67,774) | (15,029) | (88,507) | (19,052) | |||
Profit for the period | 759,476 | 306,800 | 1,465,817 | 26,082 | ||||
Other comprehensive income | ||||||||
Items that will never be reclassified to profit or loss | - | - | - | - | ||||
Items that are or may be reclassified to profit or loss | - | - | - | - | ||||
Other comprehensive income for the period | - | - | - | - | ||||
Total comprehensive income for the period | 759,476 | 306,800 | 1,465,817 | 26,082 | ||||
Basic earnings per share (Rs.) | 3 | 1.88 | 0.76 | 3.62 | 0.06 | |||
Figures in bracket indicate deductions. | ||||||||
Note: All values are in Rupees '000 unless otherwise stated. |
Provisional Financial Statements | FIRST CAPITAL HOLDINGS PLC |
Quarter ended 31 December 2022 | |
3 | |
CONSOLIDATE STATEMENT OF FINANCIAL POSITION
Group | Company | ||||
As at | 31 December | 31 March | 31 December | 31 March | |
2022 | 2022 | 2022 | 2022 | ||
(Unaudited) | (Audited) | (Unaudited) | (Audited) | ||
ASSETS | |||||
Cash at banks and in hand | 112,189 | 526,987 | 19,692 | 39,417 | |
Derivative financial instruments | 20,412 | 5,190 | - | - | |
Financial assets recognised through profit or loss -measured at | 46,344,709 | 30,066,729 | 1,756,625 | 3,220,443 | |
fair value | |||||
Financial assets - fair value through other comprehensive | 34,635 | 34,635 | - | - | |
income | |||||
Financial assets at amortised cost | 20,497,879 | 9,059,275 | 11,461,507 | 8,784,857 | |
Amounts due from related companies | 272 | 750 | 32,796 | 8,473 | |
Trade and other receivables | 1,279,230 | 1,423,170 | 13,437 | 10,161 | |
Non - current assets held for sale | 42,416 | 42,416 | - | - | |
Taxes receivable | 15,204 | 72,126 | - | 56,811 | |
Investment in subsidiary | - | - | 4,461,498 | 3,482,855 | |
Deferred tax asset | 50,411 | 122,497 | 1,253 | 986 | |
Property, plant and equipment and right of use assets | 29,453 | 38,322 | 16,946 | 17,437 | |
Intangible assets | 119,938 | 122,532 | 3,379 | 5,281 | |
TOTAL ASSETS | 68,546,748 | 41,514,629 | 17,767,133 | 15,626,721 | |
LIABILITIES | |||||
Bank overdrafts | 1,150,295 | 1,245,741 | 1,149,644 | 1,245,696 | |
Derivative financial instruments | 277,512 | 2,622 | - | - | |
Securities sold under re-purchase agreements | 47,702,437 | 23,799,838 | - | - | |
Short term borrowings | 8,178,692 | 8,139,888 | 8,306,887 | 8,250,158 | |
Amounts due to related companies | 7,660 | 5,571 | 2,485 | 2,096 | |
Trade and other payables | 998,524 | 959,271 | 55,262 | 47,543 | |
Taxes payable | 609,001 | 78,132 | 31,963 | - | |
Long term borrowings | 902,454 | - | 902,454 | - | |
Retirement benefit obligations | 49,262 | 37,404 | - | - | |
Borrowings on debentures | 2,953,615 | 2,780,890 | 2,180,859 | 2,030,553 | |
TOTAL LIABILITIES | 62,829,452 | 37,049,357 | 12,629,554 | 11,576,046 | |
EQUITY | |||||
Stated capital | 227,500 | 227,500 | 227,500 | 227,500 | |
Risk reserve | 1,410,154 | 1,239,478 | 1,410,154 | 1,239,478 | |
Retained earnings | 3,797,881 | 2,881,654 | 3,797,881 | 2,881,654 | |
Fair valuation reserve | (297,956) | (297,957) | (297,956) | (297,957) | |
Equity attributable to the equity holders of the parent | 5,137,579 | 4,050,675 | 5,137,579 | 4,050,675 | |
Non- controlling interest | 579,717 | 414,597 | - | - | |
TOTAL EQUITY | 5,717,296 | 4,465,272 | 5,137,579 | 4,050,675 | |
TOTAL EQUITY AND LIABILITIES | 68,546,748 | 41,514,629 | 17,767,133 | 15,626,721 | |
Net asset per share (Rs.) | 12.69 | 10.00 | 12.69 | 10.00 | |
Note: All values are in Rupees '000 unless otherwise stated. |
These consolidated financial statements are in compliance with the requirements of the Companies Act No. 07 of 2007.
Mangala Jayashantha
Chief Financial Officer
The Board of Directors is responsible for the preparation and presentation of these consolidated financial statements.
Dilshan Wirasekara | Nishan Fernando | |
Managing Director/ CEO | Chairman | |
13 February 2023 | ||
Colombo. | ||
Provisional Financial Statements | FIRST CAPITAL HOLDINGS PLC | |
Quarter ended 31 December 2022 | ||
4 | ||
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First Capital Holdings plc published this content on 15 February 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 February 2023 04:24:05 UTC.