First Capital boosts Janashakthi profits

CEYLON TODAY | Published: 2:00 AM Dec 1 2020
FT First Capital boosts Janashakthi profits

Sri Lanka’s Janashakthi PLC (Group) posted a total income of Rs 8.8 billion for the six months ended 30 September 2020 when compared to Rs 7.7 billion for the corresponding period in the previous year, the company said yesterday.

The Group profit after tax was Rs 1.3 billion against a loss of Rs 208 million recorded for the corresponding period of the previous year.

According to the company the increase was mainly due to strong performance at First Capital Group and Janashakthi Insurance PLC. The asset base of the group was at Rs 84 billion as of 30 September 2020 which is a Rs 9.7 billion reduction compared 31 March 2020 mainly due to the realisation of Government security portfolio at First Capital Treasuries PLC.

Janashakthi PLC at company level, reported a total income of Rs 649 million for the six months ended 30 September 2020, compared to Rs 188 million for the corresponding period of the previous year. The increase in total income is due to dividend received from First Capital Holdings PLC during the first quarter of 2020/21. The asset base of the company was at Rs 22.3 billion as of 30 September 2020.

The Company’s main subsidiary, Janashakthi Insurance PLC reported a profit of Rs 397 million for the six months ended 30 September 2020 when compared to a profit of Rs 236 million for the six months ended 30 September 2019. The increase in profit was mainly due to an increase in investment related income including fair valuation gains. Janashakthi Insurance PLC had an asset base of Rs 23.4 billion with a market capitalisation of Rs 7 million as of 30 September 2020.

First Capital Holdings PLC (the Group) recorded a Profit after Tax of Rs 1.7 billion for the six months ended 30 September 2020 compared to Rs 795 million in the corresponding period of the previous year. The increase in profit was mainly due to an increase in net interest income and trading and fair valuation gains on government securities. The Group’s Primary Dealer division reported a Profit after Tax of Rs 1.46 billion for the six months ended 30 September 2020 (2019/20 – Rs 671 million). The Corporate Finance division mobilised Rs 11.5 billion for its clients through structuring and placement of corporate debt securities and generated a fee income of Rs 108 million for six months ended 30 September 2020 (2019/20 – Rs 123 million). 

Orient Finance PLC recorded a total income of Rs 1.1 billion for the six months ended 30 September 2020 when compared to Rs 1.6 billion for the corresponding period in the previous year. The company reduced losses after tax to Rs 21 million for the six months ended 30 September 2020 when compared to a loss of Rs 233 million for the corresponding period in the previous year. The decrease in losses was mainly due to a decrease in impairment charges for loans and receivable to customers. The company had an asset base of Rs 15.2 billion with a market capitalisation of Rs 2.4 billion as of 30 September 2020.

CEYLON TODAY | Published: 2:00 AM Dec 1 2020

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