DFCC Bank continued to demonstrate positive momentum across business in the 3rd quarter of 2017 as a rapidly emerging full service commercial bank.
DFCC Bank recorded growth across all its income segments, with a 31% increase in operating income year-on-year. The Bank’s net interest income rose by 32%, to RS 8,228 million(Mn) buoyed by improvements to the net interest margin from 3.3% in December 2016 to 3.6% by September 2017. In addition, the Bank’s net fee and commission income grew by 17% to Rs 1,110 Mn complemented by the growth in business volumes.
The Bank augmented its total assets by Rs 32,568 Mn (11%) and reported a 31% growth in profit before tax of Rs 4,341 Mn and a 35% growth in profit after tax of Rs 3,418 Mn, despite a backdrop of higher taxes, volatile interest rates, tight margins and intensifying competition.
The Group closed nine months as at end September 2017, with a 24% year-on-year growth in profit before tax of Rs 4,377 Mn. Group profit after tax (PAT) for 3Q declined by Rs 525 Mn against the 3Q of 2016. This is mainly due to the Bank’s higher impairment provision and increased cost due to expansion. However, over the 9-month period, the Group recorded a consolidated PAT growth of 26% amounting to Rs 3,391 Mn.
The DFCC Group comprises DFCC Bank PLC (DFCC), and its subsidiaries - Lanka Industrial Estates Limited (LINDEL), DFCC Consulting (Pvt) Limited (DCPL) and Synapsys Limited (SL), a joint venture company - Acuity Partners (Pvt) Limited (APL) and associate company - National Asset Management Limited (NAMAL).
Anchoring growth firmly on a foundation of good governance, the DFCC Group and DFCC Bank maintained capital adequacy ratios well above minimum requirements under Basel III standards which came into effect from July 2017. As at 30 September 2017, the Group’s Tier 1 capital adequacy ratio stood at 11.83% and the total capital adequacy ratio at 15.49%.
DFCC Bank recorded Tier 1 and total capital adequacy ratios of 11.37% and 15.04% respectively, which is well over the minimum regulatory requirements of 7.25% and 11.25%.
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