Business Times

36% fall in after tax profits for DFCC in 2Q11

Sri Lankan development banking group DFCC reported a drop in second quarter 2011 group income and after tax profits, which pertained to the period ended September 30, 2010. Group income fell 18% to Rs. 2.96 billion from Rs. 3.60 billion year-on-year while after group tax profits dropped 36% to Rs. 545.72 million from Rs. 854.31 million.

However, it must be noted that second quarter after tax profits for the bank only increased 9% to Rs. 465 million. The report also indicated that, following the sale of 13.5% stake in its associate Commercial Bank of Ceylon, the group's first half 2011 consolidated financials were buoyed by the addition of Rs. 3.025 billion during the first quarter ended June 30, 2010. This resulted in an one-time contribution to group income and after tax profits for the first half of 2011 which then showed an increase to Rs. 9.96 billion and Rs. 3.89 billion respectively.

DFCC still retains almost 15% of issued voting shares as an investment in its former associate. Meanwhile, group interest income for the quarter fell to Rs. 2.41 billion, a situation somewhat tempered by group interest expenses also reducing to Rs. 1.10 billion, which led to a 7% decrease in net interest income to Rs. 1.30 billion. At the same time unspecified, group non interest income increased by more than 60% to Rs. 549.58 million.

On the other hand, group non interest expenses rose almost 30% to Rs. 635.73 million, while group provisions for bad and doubtful debts more than halved to Rs. 65.65 million.

Additionally, total performing loans and advances were virtually the same as the year before at Rs. 46.24 billion, while total non performing loans increased 8% to Rs. 8.30 billion. This allowed total gross loans and advances for the group to also remain virtually unchanged at Rs. 54.54 billion. Total balance sheet assets grew close to 5% to Rs.94.54 billion.

The report also revealed reductions in gross advances "mainly due to prepayment of some large corporate loans" which were "compensated by higher growth in gross advances in the commercial banking subsidiary DFCC Vardhana Bank Ltd."

It also emerged that "the pipeline of projects under consideration and committed projects is showing signs of improvement that portends renewed business confidence in the context of low interest rate and inflation regime with political stability."

It was also noted that "contribution to profit after tax from DVB was Rs 90 million compared with Rs 76 million in the comparable period. This increase was largely due to reversal of specific provision through recoveries."

Top to the page  |  E-mail  |  views[1]
SocialTwist Tell-a-Friend
 
Other Business Times Articles
Controversy over proposed CCC property deal
RPC looking at acquiring rubber, palm oil land in Cambodia, Vietnam
SEC stands firm on non-credit rule in Jan.
FCCISL AGM tomorrow amidst dispute
SIMs for free!
Christmas parties in Nov.
Tea in a pod
No power cuts till 2020:Power Minister
Short-cut to development-2
Collateral free micro finance: Will the proposed Micro Finance Act kill it?
IMF advises the government to tighten its fiscal policy
Cinnamon Grand launches ‘Diabetic Menu’ on World Diabetes Day
Informatics listed as partner of ICAO
Economic growth not reflected in share market
36% fall in after tax profits for DFCC in 2Q11
Renuka Holdings post-tax group profits up 168% in 1H11
Unit Trust code to be ready by 2011
Hayleys post-tax profits up marginally in 1st half 2011
NDB Group’s Q3 profits grow significantly
High latex rubber prices hurt Dipped Products margins
United Motors Lanka Group says strong half-year performance
Hemas reports 85% 1H11 earnings growth
Major tech expansion by Dialog to cover entire Sri Lanka
‘New questions over Lanka's bid to strike oil’ -- Right of Reply
SL can one day earn 15% of GDP from BPOs
Quick approvals, better infrastructure urged as SL grows
Attracting tourists and other foreigners to Ayurvedic medicine
Aitken Spence to manage 5th Indian hotel
BSA pushes for IPR compliance through SAM
‘Sun shines’ on Sunshine Co. profits
Tea Trails become Sri Lanka’s first Relais and Chateaux resort
Caltex scholarships for automobile workers
Laugfs Gas grew faster than LPG market growth
SLT, Dialog, Singer, Abans and others to collect e-waste for CEA
Weliamuna elected to global anti-corruption Board
Strengthening BOI to spur FDI
Energy-More power play from small timers in the future
SEC’s special ‘eye’ on-line
Sri Lankan-born chef leads Canadian team at world culinary event
Milestone as SLT reaches 200,000 ADSL Broadband customers
Declining interest rates and provident fund holders -- Letter
YESL initiates Entrepreneur Education for children of the war-torn East
More banks, but industry still to operate in Jaffna
ICT4D Java World Congress starts Nov 19
MicroChem gets international accreditation
Maldives wants more tourism with Sri Lanka
Seminar on ‘Proposed Education Reforms’
Sri Lanka Design Festival 2010 to offset carbon

 

 
Reproduction of articles permitted when used without any alterations to contents and a link to the source page.
© Copyright 2010 | Wijeya Newspapers Ltd.Colombo. Sri Lanka. All Rights Reserved.| Site best viewed in IE ver 6.0 @ 1024 x 768 resolution