ECONOMYNEXT – Sri Lanka’s First Capital Holdings Plc said profits fell to 135 million rupees in the June 2021 quarter from 1.4 billion rupees a year earlier, where interest rates fell sharply amid rate cuts and liquidity injections.
“The results are attributed to lower contribution of trading income of the Group’s Primary Dealer division, whereas the substantial easing of monetary policy measures was experienced during the corresponding period of the previous year,” the group said in a statement.
Its primary dealer arm had reported a profit after tax of 54 million rupees in June quarter, with a 129 million rupee interest income and a trading loss of 54 million against interest income of 163 million and trading gain of 1.62 billion rupees last year.
The Corporate Finance division had earned a profit of 35 million rupees against 188 million last yar.
The results include fee income on structuring and placement of corporate debt securities of 16 million and trading gain on sale of corporate debt/equity securities of 36 million rupees.
The Wealth Management division fee based income had grown to 22 million rupees from 15 millon.
The assets under management of the division were 45.6 billion rupees by June 2021 from 27.9 billion last year. (Colombo/Aug17/2021)