Sri Lanka primary dealer profit falls sharply

Dec 27, 2011 (LBO) – Newly listed primary dealer Entrust Securities said net profit for the six months ended September 30, 2011 fell 80 percent to 26.8 million rupees from a year ago. Earnings per share of the firm, the first non-bank primary dealer to be listed, slipped to 81 cents from 4.10 rupees the year before, a stock exchange filing said.

The company part of the Entrust Ltd. group, was listed through an introduction process on the second board of the Colombo Stock Exchange on November 29, 2011.

Interest income of the firm, which deals in government securities like treasury bills and bonds, fell 9.6 percent to 265.7 million rupees in the half-year to September 2011 from the previous year.

Interest expenses fell at a faster 12.4 percent to 208.6 million rupees over the same period enabling net interest income to rise 2.3 percent to 57 million rupees.

Entrust Securities said it had provided 10.7 million rupees for the six month ended September 2011 as fall in value of trading securities.

Capital gains on securities fell 46 percent to 38 million rupees during the period while income from trading activities fell sharply to 75 million rupees from 176 million rupees the year before.

Entrust Securities made a net profit of 149 million rupees in the year to March 31, 2011, up 325 percent from the year before, mainly due to an increase in income by 26 percent and reduction in costs.