DFCC Bank posts Rs. 2.8 bn PAT in 1Q25

DFCC Bank PLC posted a profit before tax (PBT) of Rs. 3,912 million and a profit after tax (PAT) of Rs. 2,768 million for the period ended 31 March 2025, compared to a PBT of Rs. 4,733 million and PAT of Rs. 3,134 million a year earlier.

Earnings Per Share (EPS) from banking operations was Rs. 6.38, and Rs. 17.95 including gains from asset disposals.

At Group level, PBT and PAT from continuing operations were Rs. 4,055 million and Rs. 2,877 million respectively, versus Rs. 4,821 million and Rs. 3,191 million in 2024.

Return on equity stood at 14.46 percent and return on assets before tax at 2.14 percent, inclusive of gains from discontinued operations.

Guided by policy direction, lower yields improved financial conditions for businesses and individuals, contributing to a 7 percent drop in interest income. CASA ratio rose to 26.47 percent by end-March 2025, from 24.77 percent in December 2024.

Net Interest Income rose 5 percent to Rs. 7,409 million, though net interest margin slipped to 4.10 percent from 4.18 percent.

Growth in non-funded business was driven by remittances, trade commissions and fee income, supported by expanded credit card operations. Despite increased acquisition-related expenses, net fee and commission income rose 24 percent to Rs. 1,434 million from Rs. 1,154 million.

Stage 3 impaired loan ratio improved to 5.38 percent from 5.65 percent, aided by recoveries, portfolio growth, and write-offs.

Operating expenses increased to Rs. 4,379 million, up from Rs. 3,619 million, largely due to inflation and staff benefit adjustments.

Total assets rose by Rs. 60.3 billion, or 9 percent, from December 2024. The net loan book grew 5 percent to Rs. 414 billion, up Rs. 19 billion. The bank also divested its 50 percent stake in Acuity Partners (Pvt) Ltd.

Liabilities rose by Rs. 54 billion (9 percent), while deposits grew by Rs. 36 billion (8 percent) to Rs. 501 billion. The loan-to-deposit ratio stood at 92.02 percent as at 31 March 2025.

Factoring in medium- to long-term concessionary credit lines used for lending, the CASA ratio improved to 32.66 percent and the loan-to-deposit ratio adjusted to 84.27 percent.

Total equity increased to Rs. 6 billion, supported by gains in the fair value of equity and fixed income securities and a PAT of Rs. 7.8 billion.

Capital adequacy remained strong, with Tier 1 and Total Capital ratios at 10.891 percent and 13.501 percent, respectively, compared to 12.402 percent and 15.759 percent in December 2024. The Net Stable Funding Ratio was 118.15 percent, while the Liquidity Coverage Ratio (all currency) was 255.07 percent, both well above regulatory requirements.