First Capital Holdings PLC shows Strong Performance in the First Half of 2024/25, reflecting Business Resilience

First Capital Holdings PLC (the Group) recorded a Total Comprehensive Income of Rs. 904 million for the six months ended September 30, 2024, demonstrating resilience in a dynamic market environment, compared to Rs. 9.58 billion in the same period of last year.

The Group’s net income before operating expenses for the first half of 2024/25 was Rs. 1.90 billion compared to Rs.16.61 billion reported in the corresponding period of the previous year. The significant variance was due to an extraordinary gain realised in the last year resulting from the extraordinary decline in interest rates witnessed, post domestic debt optimisation. The lower contribution via business activities of the Group, stemmed from the Primary Dealer division mainly, as the corresponding period of the previous year saw substantial easing of monetary policy rates and resultant conducive secondary market trading that was not seen in the current year.

Key financial highlights for first half of 2024/25:

The Primary Dealer division recorded a Profit after Tax of Rs. 578 million for the six months ended September 30, 2024, compared to Rs. 9.21 billion in the previous year. This period's results included a trading gain on the sale of the government securities portfolio amounting to Rs. 1.24 billion and net interest income of Rs. 834 million, compared to a trading gain of Rs. 13.6 billion and net interest income of Rs. 2 billion reported in the similar corresponding period of the previous year.

The Corporate Finance Advisory and Dealing Securities division achieved a Profit after Tax of Rs. 264 million for the six months ended September 30, 2024, a slight decrease from Rs. 337 million compared to the corresponding period of the previous year.

The Wealth Management division reported a Profit after Tax of Rs. 49 million for the first half of 2024/25, an increase from Rs. 18 million in the corresponding period of the previous year. As of September 30, 2024, the assets under management of the division totaled Rs. 95.7 billion, up from Rs. 94 billion as of March 31, 2024.

The Stock Brokering division recorded a Profit after Tax of Rs. 6 million for the six months ended September 30, 2024, a decline from Rs. 31 million compared to the corresponding period of last year.

Commenting on the performance, Dilshan Wirasekara, Managing Director/CEO of First Capital, stated, “Our results for the first half of 2024/25 highlight the strength and adaptability of First Capital Holdings PLC. We are particularly pleased with the healthy contributions from our Primary Dealer division and the impressive growth in our Wealth Management segment. These achievements underscore our commitment to providing exceptional value to our clients and stakeholders. With a clear strategy in place, we are well-positioned to capitalize on emerging opportunities in the dynamic financial landscape.”

First Capital has garnered several prestigious accolades in 2024, solidifying its leadership in the financial services sector. First Capital Holdings PLC and First Capital Treasuries PLC (subsidiary) were named Best Investment Banking Firm in Sri Lanka and Most Leading Non-Bank Primary Dealer in Sri Lanka respectively by Finance Derivative Magazine, Netherlands. Additionally, First Capital Holdings PLC was recognised as the Best Comprehensive Investment Management Firm in Sri Lanka, with Managing Director/CEO Dilshan Wirasekara honored as Financial CEO of the Year 2024 by International Investor Magazine. The subsidiary also triumphed at the ARC Awards International 2024, winning the Gold Award for its Annual Report Cover Page and the Silver Award for its PDF version. At the SLITD People Development Awards 2023/24, First Capital Holdings PLC earned the Gold Award, reflecting its strong commitment to people’s development. First Capital’s reputation continues to rise, as it was included for the first time in the LMD Top 100 Most Respected Entities in Sri Lanka. Moreover, First Capital Holdings PLC and First Capital Treasuries PLC were ranked 20th and 21st respectively in the Business Today TOP 40 for 2023/24, a testament to the company's exceptional performance and significant impact on Sri Lanka’s financial landscape during the first half of 2024/25.