Lower interest rates hurt First Capital profits
View(s):First Capital Holdings PLC has recorded an income of Rs. 5 billion for the year ending March 2025, down from Rs. 10.1 billion in the previous year, largely affected by lower interest rates.
“The variance is attributed to the extraordinary gains realised in the previous financial year resulting from a significant decline in interest rates, and post-domestic debt optimisation along with a reduction in policy interest rates. However, during the latter part of the financial year, a moderate decline in interest rates was witnessed, which resulted in creating a favourable market position for debt securities as well as equity securities with the stabilisation of the political outlook of the country,” the company said in a media release.
First Capital Treasuries PLC, group’s Primary Dealer division, reported a Profit after Tax (PAT) of Rs. 3. billion for the year, down from Rs. 11.1 billion in the previous year. The results include trading gains on the sale of government securities portfolio amounting to Rs. 3 billion and net interest income of Rs. 1.6 billion, trading gains of Rs. 15.8 billion and net interest income of Rs. 3.2 billion.
In other areas, the company reported gains. The Corporate Dealing Securities and Advisory division reported a PAT of Rs. 2.2 billion for the year against PAT of Rs. 215 million in the previous year.
The Wealth Management division reported a PAT of Rs. 106 million against Rs. 6 million in the previous year. Dilshan Wirasekara, Managing Director/Chief Executive Officer of First Capital Holdings PLC, stated, “We are not just responding to the market—we are shaping it. This year’s performance reflects our ability to lead with clarity, adapt with precision, and deliver with confidence.”
Hitad.lk has you covered with quality used or brand new cars for sale that are budget friendly yet reliable! Now is the time to sell your old ride for something more attractive to today's modern automotive market demands. Browse through our selection of affordable options now on Hitad.lk before deciding on what will work best for you!