May 15, 2017

DFCC Group posts Rs 1,373 mn 1Q profit

The DFCC Group reported a consolidated profit after tax of Rs. 1,373 million for the first quarter ended March 31.

This represents a growth of 42% over the Rs. 970 million in the comparable period of the previous year and a growth of 77% over the Rs. 777 million in the previous quarter.

DFCC CEO Arjun Fernando said they are forging ahead with new initiatives to reach greater milestones in 2017. “Whilst planning our growth strategy we have set into motion an array of financially prudent measures, customised financial solutions, digitalisation initiatives, branch expansion and other deposit mobilisation schemes to position ourselves in the consumer banking landscape. Delivering sustainable value to all our stakeholders underpins our efforts as we partner our customers on the path to financial growth.”

The Group comprises DFCC Bank and its subsidiaries - Lanka Industrial Estates, DFCC Consulting and Synapsys, Acuity Partners (the joint venture company) and National Asset Management Limited (the associate company).

Following its amalgamation with DFCC Vardhana Bank, DFCC Bank is now a fully-fledged commercial bank that offers a range of products and services across customer segments with specialised expertise in development banking.

The Bank recorded a 65% growth in profit before tax to Rs. 1,692 million year on year from Rs. 1,029 million and 45% growth in profit after tax to Rs. 1,339 million from Rs. 926 million. Due to timely repricing of assets and liabilities the interest margins improved to 3.6% from 3.3% during the previous quarter, which contributed towards augmenting net interest income.

Net interest income grew by 44% to Rs. 2,581 million from Rs. 1,788 million while net fee and commission income increased by 16% to Rs. 343 million from Rs. 296 million due to successful strategies adopted by the Bank in service delivery.