Financial Times

First Capital Treasuries shows record profit

The First Capital Treasuries Limited (FCTL), the primary dealer arm of First Capital Group, recorded an after-tax profit of Rs. 538 million in the first half ended June 2003.

This is the highest ever profit that the company has achieved in its 10-year history, said MD/CEO Ajith Devasurendra. In 2002 the company earned a net profit of Rs. 214 million.

The FCTL was originally incorporated in 1990 as MB Financial Services (Pvt) Limited (MBFSL), as a subsidiary of Merchant Bank of Sri Lanka. At the inception the Company was primarily focused on inter-bank money brokering. Subsequently, the company obtained a primary dealer licence in 1992. In 1998, Commercial Capital that was a joint venture between Commercial Bank and Singer Sri Lanka acquired 30% of FCTL. At the same time Commercial Bank divested current staff and the directors of the company bought its stake in Commercial Capital. Later Commercial Capital increased its holding to 65% of MBFSL. In August 1999, the Company name was changed to First Capital Treasuries Limited.

The FCTL was incorporated with an initial capital of Rs. 1 million in 1990, and at present the Company's net worth stands at Rs. 495 million. FCTL does leveraged portfolio management with active secondary market trading in government securities and has been playing a role in expanding the boundaries of the Sri Lankan debt market and took the initiative to open branches in Matara and Kandy.

FCTL has made arrangements to distribute debt securities in other parts of the country with the assistance of rural financial institutes. In March 2000 the Company introduced FBI, the First Capital Sovereign Bond Index, the first index to track the market movement of the Sri Lankan Government bond market.