DVB’s 2014 post tax profit in phenomenal 80% hike over 2013
View(s):DFCC Vardhana Bank (DVB) has closed the 2014 calendar year reporting an impressive post-tax profit of Rs.1 billion, up by 80 per cent against 2013 while the bank’s total assets were valued at Rs. 100 billion.
“DVB’s achievement becomes more significant as 2014 was a difficult year due to challenging market conditions that prevailed throughout the year. The bank’s net interest income grew by 7 per cent to a record Rs. 3.3 billion as at 31December 2014. DVB did extremely well in fee income generation recording a 25 per cent increase. Treasury operations also recorded a significant growth of 206 per cent spurred by the two main business lines FX and fixed income securities,” the bank said in a statement.
DVB said it consistently applied the revised impairment assessment methodology implemented during the second quarter throughout 2014. The year-end cumulative allowance for impairment for loans and advances was maintained at a healthy level of 64 per cent of the impaired loans and advances of the bank. “In a year where the demand for corporate investment and retail banking had diminished, DVB has done well to record a credit growth in 2014 of 21 per cent compared to the previous year despite the pawning portfolio of the bank shrinking. This commendable achievement took the bank’s loans and receivables to other customers at the end of December 2014 to an all-time high of Rs.65 billion,” it said. The bank also recorded a significant growth of 26 per cent in total assets to surpass the Rs. 100 billion mark in 2014 compared to Rs. 79.8 billion in 2013.