The company has reported a net profit of Rs 57.8 million for the quarter against a turnover of Rs 408.7 million, in a performance it described as strong in the context of the absence of the exceptionally favourable conditions that prevailed in its field of business in the corresponding quarter of last year.
Profit attributable to equity holders of the parent company was Rs 51 million for the three months reviewed.
"The high interest rates of the last financial year generated unsustainably high gains from investments in government securities," a spokesman for the company explained. "Although this cycle has now slowed, the company has sustained its momentum with strong performances from all of its business units."
"We are now operating in relatively settled market conditions as far as government securities are concerned," he said. "As expected, the spread between the securities held by the company and the rates at which it funds those securities has reduced this year, narrowing margins."
He disclosed that the company had made a capital gain of Rs 19 million from bonds in the first quarter of the current year as against a gain of Rs 360 million in the first quarter of 2009-10 from the same source.
First Capital which obtained its Primary Dealership licence in 1992 comprises of First Capital Treasuries (FCT), First Capital Markets (FCM) and First Capital Asset Management (FCAM).
The Group achieved a net profit of Rs 660.7 million and turnover of Rs 2.7 billion for the year ending 31st March 2010.
source - www.island.lk
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