DFCC Bank recorded a profit after tax of Rs. 2,217 million for the period ended September 30, 2019 before the adjustment for the fair value loss on Commercial Bank of Ceylon PLC (CBC) in comparison to profit after tax of Rs. 2,723 million recorded in the comparative period. The bank’s profit after tax with the [...]

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Resilient performance amidst challenges at DFCC Bank

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DFCC Bank recorded a profit after tax of Rs. 2,217 million for the period ended September 30, 2019 before the adjustment for the fair value loss on Commercial Bank of Ceylon PLC (CBC) in comparison to profit after tax of Rs. 2,723 million recorded in the comparative period.

The bank’s profit after tax with the adjustment for the fair value loss on CBC shares amounted to Rs. 1,594 million for the current period against Rs. 1,791 million in the comparative period. On the same basis, the group recorded a profit after tax of Rs. 1,765 million for the period ended 30 September 2019 compared to Rs. 1,955 million in the comparative period, the banking group said in a media statement.

The bank recorded a total operating income amounting to Rs. 9,839 million for the period ending September, compared to Rs. 9,296 million for the comparative period, recording an increase of 6 per cent. Fees and commission income grew by 3 per cent to Rs. 1,468 million against Rs. 1,422 million in the comparative period.

“Challenging business environment faced by most industries resulted in delay or non-payment of dues on time by clients. As a result, the impairment provision during the period ending September increased to Rs. 795 million which is an increase of 26 per cent compared to Rs. 633 million recorded in the comparable period. The bank’s NPL ratio as at September 2019 was 4.84 per cent compared to 3.28 per cent recorded as at end December 2018,” the statement said.

DFCC bank’s total assets showed a growth of 7 per cent since December 2018 by Rs. 27,547 million to Rs. 402,455 million as of September 2019.

Within this, the bank’s loan portfolio grew by Rs. 20,273 million to Rs. 270,007 million compared to Rs. 249,734 million as at end December 2018 recording an increase of 8 per cent. “The bank did not pursue aggressive growth particularly to sectors that exhibited stress, as a result of its stance on prudent lending,” it said.

The bank’s deposit base as at September 2019 amounted to Rs. 232,834 million, which is a 4 per cent decline from Rs. 242,238 million as at end December 2018. “This is largely due to the bank’s strategy to reduce the concentration risk on a few institutional deposits and increase in retail deposit base to reach the long term objective of achieving one million customers by 2020,” it said.

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