DFC Bank has recorded an impressive Rs. 437.18 million profit before tax for the 9 months period ending September 30, 2018 as against Rs.223.85 million in the corresponding period of 2017. The profit after tax had been Rs.326.23 million as against Rs.85.11 million in the same period 2017.
The Bank’s interest income has grown from Rs. 4,893.40 million to Rs. 5,004.63 million recording an increase of 2.27%. The interest expense which was reduced from Rs.3516.40 million to Rs 3,328.19 million was one of the major drivers of the profitability escalation in 2018. The fee based income has shown an impressive growth of 30% from Rs.216 million to 280 million. This was revealed by the Chief Executive Officer/GM, Palitha Gamage in a press release announcing the Bank’s 3Q 2018 performance.
The Bank’s loan portfolio stood at Rs.37.13 billion as against Rs.34.97 billion as at December 31 2017 an increase of 6.2%. However, total assets base was scaled down strategically by managing the investment and liquid assets portfolio at an optimal levels to improve profitability.
Therefore the deposit portfolio was strategically reduced to Rs.35.36 billion from Rs.36.65 billion during the first nine months of the year 2018.
The Bank had been maintaining a liquid assets ratio of above 30% in order to face the anticipated liquidity challenge, pending the extension of the Central Bank’s deadline for meeting the regulatory minimum capital requirement of Rs. 5 billion.
The Return of Assets (ROA) stood at 1.72% as against 1.05% in the year end 2017 and the Return on Equity (ROE) has risen from 7.27% to 9.96%. HDFC Bank maintained the regulatory capital adequacy ratios (Common Equity Tire 1 Capital Adequacy Ratio, Tier 1 Capital Adequacy Ratio and Total Capital Adequacy Ratio ) at a healthy level of 13.31% as against the regulatory minimum requirement of 6.375%, 7.875% and 11.875% respectively. The bank also maintained the Statutory Liquid Asset Ratio of 25.31% and Liquidity Coverage Ratio of 93.43% as against the regulatory requirements of 20% and 90% respectively as at the end of the 3Q 2018.
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