DFCC Bank PLC, the largest entity within the Group, reported a profit before tax (PBT) of Rs. 1,915 million and a profit after tax (PAT) ofRs. 1,479 million for the quarter ended March 31,2021.
This compares with a PBTof Rs. 1,295 million and a PAT of Rs. 925 million in the comparative period.
The Group recorded a PBT of Rs. 2,036 million and PAT of Rs.1,583 million for the quarter ended March 31, 2021 as compared to Rs. 1,408million and Rs. 1,014 million respectively in the comparative period of year 2020.
The DFCC Group comprises of DFCC Bank PLC (DFCC), and itssubsidiaries – Lanka Industrial Estates Limited (LINDEL), DFCC Consulting (Pvt)Limited (DCPL) and Synapsys Limited (SL), the joint venture company–Acuity Partners (Pvt) Limited (APL) and associate company–National Asset Management Limited (NAMAL). The basic earnings per ordinary share (EPS) of the Bank improved to Rs. 4.80 for the quarter ended March 31, 2021 from Rs. 3.04 for the comparative period in year 2020 recording an increase of 58%.
The Bank recorded a Rs. 2,679 million in net interest income(NII) which is a 10% decline year on year primarily due to the drop in AWPLR more than 370 bps over the past 12 months and due to the business implications that arose with the pandemic situation.During the quarter ended March 31, 2021, operating expenses increased from Rs. 1,751 million to Rs. 2,031 million compared to the corresponding period in the previous year. Staff related provisions for year2019 which were not utilized were reversed during the period ended March 31, 2020 and if not for such reversal the increase in total operating expenses would have been only 6% during the quarter ended March 31, 2021 compared with the comparative period of year 2020.
Despite the challenging business environment, the Bank continued its growth strategy by increasing both deposit and loan portfolio as at March 31, 2021. The loan portfolio grew by Rs. 12,652 million to record Rs. 314,562 million compared to Rs. 301,909 million as at December 31 2020 recording an increase of 4%. The Bank’s deposit base also experienced a growth of 1% recording an increase of Rs. 2,059 million to Rs. 312,086 million from Rs. 310,027 million as at December 31, 2020.
“Given the ongoing uncertainties we will pursue growth. Our focus will be to engage with our customers and ensure that we will be their pillar of strength to help them achieve success during these unprecedented times. We will also continue to expand our digital footprint to offer ease and convenience to our customers in the new normal,” Lakshman Silva – Chief Executive Officer said.
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