Headline Result
- WealthTrust Securities PLC, a licensed primary dealer in Sri Lanka, returned to profit in Q2 of FY2026/27
- Profit after tax of Rs. 154.6 million for the quarter ended September 30
- Compares with a loss of Rs. 455.2 million in the preceding quarter
Management Comment
- Romesh Gomez, Managing Director/CEO, called the return to profitability “encouraging” despite continued market volatility
- Focus remains on prudent risk management, a strong balance sheet and a more sustainable, consistent earnings profile
Market Backdrop
- Government securities yields moved significantly during the quarter
- July: upward pressure on bond yields
- August: strong rally, supported by favourable liquidity, foreign investor demand, declining Treasury bill yields and limited new bond supply at auctions
- Late September: momentum moderated and sentiment reversed, driven by renewed Middle East tensions, elevated global oil prices and rising global bond yields
Quarterly Performance Drivers
- Net fair value gains of Rs. 170.8 million, compared to net losses of Rs. 579.3 million in the previous quarter
- Net interest income of Rs. 301.8 million, a key earnings contributor
- Fee-based income of Rs. 27.0 million
- Brokerage income of Rs. 1.4 million
- Net realised capital losses of Rs. 241.3 million continued to weigh on results
Six-Month Performance (to September 30)
- Cumulative loss after tax of Rs. 300.7 million, versus a profit after tax of Rs. 437.1 million a year earlier
- Net interest income broadly stable at Rs. 667.1 million (Rs. 675.8 million a year earlier)
- Combined net capital and fair value losses of Rs. 787.1 million, versus net gains of Rs. 364.9 million in the corresponding 2025 period
- These losses were the main drag on half-year results
Financial Position
- Regulatory ratios maintained comfortably above applicable minimum requirements
- Net assets of Rs. 6.6 billion
- Total assets of Rs. 50.6 billion as at September 30
Outlook
- The company will take a measured approach to market opportunities
- Emphasis on prudent portfolio positioning and disciplined risk management amid evolving market conditions
Disclaimer:This is not a buy or sell recommendation.
