Capital Alliance maintains growth momentum for financial year ending 2014/2015

Capital Alliance Ltd. (CALT), the primary dealership arm of Sri Lanka’s leading full service investment bank (CAL) recently recorded an impressive profit after tax (PAT) of Rs. 531 million for the financial year ending 31 March 2015. A continued focus on developing strong partnerships and an effective research unit, combined with a renewed effort to drive synergies throughout the group, have helped CALT to maintain a well-balanced momentum of growth despite rapidly changing market conditions.

The company recorded an increase in profits of 60% over the previous financial year. CALT’s net interest income was recorded at Rs. 150.4 million and capital gains doubled over the previous year to Rs. 591 million. There was also a significant growth in other income channels, which contributed Rs. 30.2 million to overall income from operating activities. The company’s superior Return on Assets of 8% and a Return on Equity of 43% showcase the success of the management’s dual focus on expanding the company’s fee based business and market making activities. CALT also continued to dominate the listed debenture space by obtaining over 50% market share in secondary market trading. This is due to a concerted effort to make a market in several bluechip debt securities. As at 31 March 2015, the company’s total assets were valued at Rs. 6.64 billion.

During the year, CALT also benefited from the investment made in building and positioning the CAL corporate brand. Additionally, a new employee share option scheme was introduced as part of CAL’s overall retention strategy. CALT also focused on providing its customers with an increasingly holistic offering that leveraged the combined strengths of all CAL business units.

Commenting on the company’s performance, CALT Chief Executive Officer Gihan Hemachandra stated, “The CALT team has managed to maintain well-balanced growth over the course of this financial year. Market conditions varied drastically over the last few months, making the operating environment immensely challenging for us. We first observed a change in the markets in October 2014, and noted an upward pressure on interest rates and a shift in other economic variables. Responding proactively to these trends, we adopted a ‘risk-off’ strategy, which held us in good stead and enabled us ride off the volatility with little concern. The strengthening of the CAL brand and our renewed commitment to investing in our people, and driving synergies throughout our various business units, are all key aspects which we will continue to develop as we look ahead to the future.”

CALT is the primary dealership arm of Capital Alliance (CAL), a company which is continuously striving to become the preferred partner in financial markets. Having commenced operations in October 2000, CAL has established itself as a leading player in the financial markets of Sri Lanka. The company specialises in the origination, trading and investment of debt and equity securities and this mix of expertise and services allows CAL to offer integrated and customised solutions to its customers across the entire financial spectrum.

The company strives to build lasting relationships with all of its clients, in order to acquire an in-depth understanding of their needs and goals. CAL has built a reputation for itself as a market leader, by consistently delivering excellence in execution, world-class research and product innovation.