ECONOMYNEXT – WealthTrust Securities PLC, a licensed primary dealer in Sri Lanka, returned to profitability in the second quarter of the financial year 2026/27, recording a profit after tax of 154.6 million rupees for the quarter ended September 30, compared to a loss of 455.2 million rupees in the preceding quarter.
The recovery came amid continued volatility in the domestic government securities market, with the company maintaining its focus on prudent portfolio positioning and disciplined risk management.
“The return to quarterly profitability is encouraging, particularly in the face of continued volatility in the government securities market. Our focus remains on prudent risk management, maintaining a strong balance sheet and building a more sustainable and consistent earnings profile,” Romesh Gomez, Managing Director/Chief Executive Officer of WealthTrust Securities PLC, said.
The quarter was characterised by significant movements in government securities yields.
Upward pressure on bond yields during July gave way to a strong rally through August, supported by favourable liquidity conditions, foreign investor demand, declining Treasury bill yields and limited new bond supply at auctions.
However, the momentum subsequently moderated, with renewed geopolitical tensions in the Middle East, elevated global oil prices and rising global bond yields contributing to a reversal in market sentiment towards the end of September.
Against this backdrop, the Company’s quarterly performance benefited from improved mark-to-market valuations, with net fair value gains of 170.8 million rupees, compared to net losses of 579.3 million rupees in the preceding quarter.
Net interest income remained a key contributor to earnings, amounting to 301.8 million rupees, while fee-based income and brokerage income contributed a further 27.0 million rupees and 1.4 million rupees, respectively.
Net realised capital losses of 241.3 million rupees continued to weigh on the quarterly result.
For the six months ended September 30, the company recorded a cumulative loss after tax of 300.7 million rupees, compared to a profit after tax of 437.1 million rupees in the corresponding period of the previous financial year.
Net interest income for the six-month period remained broadly stable at 667.1 million rupees, compared to 675.8 million rupees a year earlier.
However, combined net capital and fair value losses amounting to 787.1 million rupees, compared to net gains of 364.9 million rupees in the corresponding period of 2025, weighed on the overall half-year performance.
The company continued to maintain its regulatory ratios comfortably above the applicable minimum requirements, underpinned by a strong financial position, with net assets of 6.6 billion rupees and a total asset base of 50.6 billion rupees as at September 30.
WealthTrust Securities said it will continue to adopt a measured approach to market opportunities, with an emphasis on prudent portfolio positioning and disciplined risk management amid evolving market conditions. (Colombo/Nov9/2026)