NatWealth Securities turnaround with 178% surge in profits
Tuesday, 17 June 2014 00:00
NatWealth Securities, a Primary Dealer appointed by the Central Bank of Sri Lanka and supervised by the Public Debt Department, recorded an impressive surge in its profits for the year ended 31 December 2013.
It recorded a profit of Rs. 127.15 m in 2013, from a loss of Rs. 161.45 m recorded in 2012. The investment income increased to Rs. 843 m in year 2013 from Rs. 448 m in year 2012 reflecting an increase of 88%, whilst the net investment income recorded a positive of Rs. 190.35 m from a negative of Rs. 291.24 m in year 2012, a growth of 165%. The shareholders’ funds too grew by 38% from Rs. 333 m in year 2012 to Rs. 461 m in year 2013.
CEO A.H.M. Riyaz said the company has operated with a clear business focus and has been able to achieve the stipulated growth echelons. Despite the first three quarters of the year 2013 witnessing upward trends in interest rates, we were able to beat all odds due to careful planning and risk management tools whilst being able to accurately forecast the trends in interest rates.
Due to the said accurate forecasting, the company was able to enhance the capacity of the overall portfolio which paid rich dividends in terms of capital gains whilst being able to take forward the said benefits to the year ahead.
The continuous training and development of staff to enhance their skill levels, upgrading of the IT systems to improve efficiency and the use of discreet risk management tools together with the commitment and the dedication of the staff and the sound/practical policies and procedures approved by the Board resulted in the said achievements for the year 2013.
NatWealth Securities is the wholly-owned subsidiary company of National Wealth Corporation, whose parent is the Mahapola Higher Education Scholarship Trust Fund which comes under the purview of Ministry of Cooperatives and Internal Trade.