Monday Nov 09, 2026
Monday Nov 09, 2026
Monday, 9 November 2026 04:56 - - {{hitsCtrl.values.hits}}
Managing Director/Chief Executive Officer Romesh Gomez
WealthTrust Securities PLC yesterday said it returned to profitability in the second quarter of the financial year 2026/27, recording a profit after tax of Rs. 154.6 million for the quarter ended 30 September 2026, compared to a loss of Rs. 455.2 million in the preceding quarter.
The recovery came amid continued volatility in the domestic Government securities market, with the Company maintaining its focus on prudent portfolio positioning and disciplined risk management.
The quarter was characterised by significant movements in Government securities yields. Upward pressure on bond yields during July gave way to a strong rally through August, supported by favourable liquidity conditions, foreign investor demand, declining Treasury bill yields and limited new bond supply at auctions. However, the momentum subsequently moderated, with renewed geopolitical tensions in the Middle East, elevated global oil prices and rising global bond yields contributing to a reversal in market sentiment towards the end of September.
Against this backdrop, the Company’s quarterly performance benefited from improved mark-to-market valuations, with net fair value gains of Rs. 170.8 million, compared to net losses of Rs. 579.3 million in the preceding quarter. Net interest income remained a key contributor to earnings, amounting to Rs. 301.8 million, while fee-based income and brokerage income contributed a further Rs. 27.0 million and Rs. 1.4 million, respectively. Nevertheless, net realised capital losses of Rs. 241.3 million continued to weigh on the quarterly result.
For the six months ended 30 September 2026, the Company recorded a cumulative loss after tax of Rs. 300.7 million, compared to a profit after tax of Rs. 437.1 million in the corresponding period of the previous financial year. Net interest income for the six-month period remained broadly stable at Rs. 667.1 million, compared to Rs. 675.8 million a year earlier. However, combined net capital and fair value losses amounting to Rs. 787.1 million, compared to net gains of Rs. 364.9 million in the corresponding period of 2025, weighed on the overall half-year performance.
The Company continued to maintain its regulatory ratios comfortably above the applicable minimum requirements, underpinned by a strong financial position, with net assets of Rs. 6.6 billion and a total asset base of Rs. 50.6 billion as at 30 September 2026.
Commenting on the Company’s performance, Managing Director/Chief Executive Officer Romesh Gomez said: “The return to quarterly profitability is encouraging, particularly in the face of continued volatility in the Government securities market. Our focus remains on prudent risk management, maintaining a strong balance sheet and building a more sustainable and consistent earnings profile.”
Looking ahead, WealthTrust Securities will continue to adopt a measured approach to market opportunities, with an emphasis on prudent portfolio positioning and disciplined risk management amid evolving market conditions.
