DFCC Bank reports reduced post-tax profits for Q1 2026
View(s):DFCC Bank profits fell during the first quarter of 2026. DFCC Bank PLC, the largest entity within the group, reported a Profit Before Tax (PBT) of Rs.2,439 million and a Profit After Tax (PAT) of Rs.1,715 million from core operations for the period ending March 2026, compared to a PBT of Rs.3,962 million and a PAT of Rs.2,818 million in the corresponding period. At group level, PBT was Rs.2,573 million and PAT was Rs.,812 million, compared to Rs.4,105 million and Rs.2,927 million, respectively, in 2025.
However, despite these results, the bank said in a media release that prudent liquidity management and funding optimisation, together with effective control of funding costs in a moderating interest rate environment, supported the bank’s performance and strengthened long-term value creation for shareholders and customers, resulting in a 12 per cent increase in Net Interest Income to Rs.8 billion.
PAT from core business amounted to Rs.1.7 billion, reflecting the bank’s prudent and forward-looking approach to risk management amid evolving geopolitical and macroeconomic conditions. During the period, the bank strengthened impairment provisioning through updated model calibrations and management overlays, while adopting selective lending strategies and disciplined cost management measures to support sustainable growth and strengthen resilience against unforeseen external shocks. Impairment charges increased by Rs.1.8 billion compared to the corresponding period.
DFCC Bank achieved a significant milestone with the signing of a binding Business Sale Agreement with Standard Chartered Bank PLC to acquire its Wealth and Retail Banking operations in Sri Lanka. The bank has now transitioned to the next phase of the transaction, with integration and migration activities currently underway as the bank progresses towards completion of the transition.
The bank’s reported bottom line for the period was impacted by mark-to-market valuation losses on equity securities, arising from heightened volatility in global financial markets amid ongoing geopolitical developments, including the escalation of the West Asian conflict, which negatively impacted investor sentiment and equity market valuations globally.
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