First Capital Holdings posts Rs. 3.43 b PAT in 1H

First Capital Holdings PLC yesterday announced a stellar performance for the six months ended 30 September, recording a Profit after Tax of Rs. 3.43 billion, a substantial increase from Rs. 897 million in the corresponding period of the previous year. 

Managing Director/CEO Dilshan Wirasekara said, “This performance reflects the Group’s disciplined strategic execution, agile response to market dynamics and continued leadership across key segments of Sri Lanka’s capital markets.”

The Group’s Net Trading Income before Operating Expenses for the first half of 2025/26 stood at Rs. 5.46 billion, compared to Rs. 1.88 billion in the same period of the previous year, underscoring the strength of its diversified business model and its ability to capitalise on favourable market opportunities.

During the period under review, a moderate decline in interest rates was observed following the reduction in the monetary policy rate in May 2025, despite marginal upward pressure on Government Securities yields towards the end of the second quarter. This monetary stance fostered positive conditions for trading activities, particularly within the equity market. Consequently, the Primary Dealer and Corporate Dealing Securities divisions emerged as the largest contributors to the Group’s overall trading income.

The Group’s Primary Dealer division reported a Profit after Tax of Rs. 1.57 billion for the first six months ended 30 September, compared to Rs. 578 million in the previous year. The results include a trading gain on Government Securities amounting to Rs. 1.81 billion and net interest income of Rs. 988 million (first six months of 2024/25 – trading gain of Rs. 396 million and net interest income of Rs. 834 million).

The Corporate Finance Advisory and Corporate Dealing Securities divisions delivered a Profit after Tax of Rs. 1.81 billion for the six months ended 30 September, a substantial increase from Rs. 264 million reported in the first six months of previous year, reflecting the growing demand for strategic financial solutions and the Group’s continued focus on creating value for its clients and stakeholders. 

The Wealth Management division reported a Profit after Tax of Rs. 48 million for the six months ended 30 September (first six months of 2024/25 – Rs. 49 million), with Assets under Management (AUM) standing at Rs. 99 billion as of 30 September (31 March – Rs. 112 billion).

The Stock Brokering division recorded a Profit after Tax of Rs. 116 million for the six months ended 30 September, compared to Rs. 6 million in the corresponding period of the previous year, a clear indicator of renewed investor participation and improved market sentiment.

In recognition of the strong performance, the Board of Directors of the company declared an interim dividend of Rs. 7 per share, amounting to Rs. 2.84 billion for the year 2025/26 in October 2025.

Chairman Rajendra Theagarajah said: “Our performance this year reflects the effectiveness of our strategy and the strength of our people. We continue to navigate a rapidly changing market with clarity and conviction, driving sustainable growth while delivering long-term value to our stakeholders. The results reinforce our confidence in the fundamental opportunities within Sri Lanka’s capital markets and our resolute commitment to deepening our contribution to the country’s financial ecosystem.”

Managing Director/CEO Wirasekara said: “Each of our business segments continues to demonstrate strong operational momentum, supported by strategic agility and a culture of innovation. We remain focused on strengthening our leadership in the capital markets space, leveraging our expertise to help investors and institutions unlock long-term value and opportunity.”

Adding to this positive momentum, the Lanka Credit Rating Agency Ltd., (LRA) upgraded the company’s credit rating to ‘A+’ from ‘A’, with a stable outlook, reflecting strengthened financial strength and market confidence. This upgrade reflects First Capital’s sustained profitability, sound capital structure, robust governance and strategic leadership in Sri Lanka’s evolving capital market landscape.