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DFCC keeps growing

2 November 2016 10:56 am - 0     - {{hitsCtrl.values.hits}}

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•    Net profit up 43% at Bank; 32% at Group
•    Total assets increase 17% year-on-year
•    Operating expenses decrease 7%

The synergies of the amalgamation with Vardhana Bank are starting to materialise. For the nine months ended 30 September 2016, DFCC’s profit after tax recorded a 43% growth to LKR 2,527 million from LKR 1,766 million with the Group posting a 32% growth to LKR 2,692 million from LKR 2,034 million. DFCC’s core banking business was the main driver with net interest income up 17% to LKR 6,231 million from LKR 5,325 million. This was complemented by net fee and commission income, which grew by 14% to LKR 951 million from LKR 832 million.

Reflecting a controlled approach, the total assets of the Group grew by 12% for the nine months and stood at LKR 277,517 million as at 30 September 2016 compared to LKR 247,109 million as at 31 December 2015. Meanwhile, the total assets of the Group recorded a year-on-year growth of 17% compared to LKR 236,564 million as at 30 September 2015. In terms of prudential indicators, DFCC is one of the best capitalized banks in the industry. As at 30 September 2016, the Group Tier 1 capital adequacy ratio was 14.0% and the total capital adequacy ratio was 13.6% before considering the current year to date profit. These ratios stand well above the regulatory stipulated levels.

Close monitoring and follow up have enabled an improvement in portfolio quality as borne out by the decline in the gross non-performing loan and advance ratio to 3.9% from 4.4% during the third quarter. This is creditable considering the substantial exposure of the Bank’s credit portfolio to higher risk project finance and term lending. Accompanying this improvement was the decrease in the impairment allowance to LKR 910 million from LKR 953 million as a result of improved recoveries. Meanwhile, on the cost side, the synergies from the amalgamated banks along with stringent cost control and efficiency measures resulted in a reduction of operating expenses by 7% to LKR 3,296 million from LKR 3,530 million.      

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See Kapruka's top selling online shopping categories such as Toys, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.

 


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See Kapruka's top selling online shopping categories such as Toys, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.