First Capital earnings ease as extraordinary gains in FY24 recede

First Capital Holdings PLC reported a total comprehensive income of Rs. 5.0 billion for the year ended March 31, 2025, down from Rs. 10.1 billion a year earlier, as gains normalised following a sharp decline in interest rates in the previous year.

The drop in earnings was largely due to the absence of exceptional trading gains recorded in 2023/24, which had been driven by steep rate cuts following the domestic debt optimisation programme and a looser monetary policy stance.

During the latter part of 2024/25, a moderate easing of interest rates and improved political stability supported market sentiment took place, creating favourable conditions for both debt and equity securities. As a result, the group’s Primary Dealer and Corporate Dealing Securities and Advisory divisions contributed significantly to trading income.

Key financial highlights for the year ended 31 March 2025:

First Capital Treasuries PLC, Group’s Primary Dealer division, reported a Profit after Tax of Rs. 3.0 billion for the year ended 31 March 2025 (2023/24 – Profit after Tax of Rs. 11.1 billion). The results include trading gains on the sale of government securities portfolio amounting to Rs. 3.0 billion and net interest income of Rs. 1.6 billion (2023/24 – Trading gains of Rs. 15.8 billion and net interest income of Rs. 3.2 billion). 

The Corporate Dealing Securities and Advisory division reported a Profit after Tax of Rs. 2.2 billion for the year ended 31 March 2025 (2023/24 – Profit after Tax of Rs. 215 million). The division’s equity portfolio significantly contributed to the bottom line.

The Wealth Management division reported a Profit after Tax of Rs. 106 million for the year ended 31 March 2025 (2023/24 – Profit after Tax of Rs. 6 million). The assets under management of the division stood at Rs. 112 billion as of 31 March 2025 (31 March 2024 – Rs. 94 billion).

The Stock Brokering division recorded a Profit after Tax of Rs. 70 million for the year ended 31 March 2025 (2023/24 – Profit after Tax of Rs. 8 million).

In March 2025, the Board of Directors of the company declared an interim dividend of Rs. 7.50 per share amounting to Rs. 3 billion for the year 2024/25.