Record Performance by DFCC Group with post-tax profit up 38%
DFCC Group said its group profit after tax increased by 38 per cent to Rs.4.4 billion for the year ended March 2015, up from Rs. 3.2 billion in the earlier year.
“Although there was a drop in net interest income, caused primarily because DFCC’s development banking model precluded the bank from maintaining current and savings accounts unlike other commercial banks, overall operating income before VAT and NBT grew b y 33 per cent to Rs. 6.1 billion from Rs. 4.6 billion. The growth in operating income was driven by a combination of increased fees and other income, and stringent control of costs,” the bank’s media release said.
The announcement on Monday came at the same time the group said that DFCC Bank and DFCC Vardhana Bank were merging.
Group assets surpassed the Rs. 200 billion mark rising to Rs. 211 billion from Rs. 175 billion in the previous period. Besides DFCC Bank’s and DFCC Vardhana Bank’s exceptional performance, the other subsidiaries in the DFCC Group – DFCC Consulting, Lanka Industrial Estates and Synapsys, and the joint venture – Acuity Partners, also reported excellent results and contributed well to Group performance.
The release said the current year marks the 60th anniversary of DFCC Bank and the group will look at various options in transforming to a universal bank, including an amalgamation between DFCC Bank PLC and DFCC Vardhana Bank after receiving all the required approvals.