DVB ends first half of 2015 on an excellent note
View(s):DFCC Vardhana Bank PLC (DVB) last week reported a profit after tax of Rs. 635.5 million for the first half ended 30 June 2015, with profit growth up 85 per cent over the corresponding period of 2014.
Net interest income recorded a growth of 28 per cent over the previous period due to the reduction in interest expenses compared to the corresponding period in the previous year. A low interest rate operating environment brought about many challenges on asset re-pricing which was partly offset by reducing the cost of liabilities by re-pricing shorter tenor deposits and reducing the high cost deposits, the bank said in a statement.
Commenting on the bank’s performance, Lakshman Silva, CEO of DFCC Vardhana Bank said, “The impressive performance recorded by DVB is a result of the management’s decision to take proactive measures to address critical challenges based during the period and review”.
Due to stringent cost management, the bank was able to contain the overall operating cost increase which was recorded at 22 per cent over the corresponding period. The total assets of the bank increased by Rs 10.6 billion to reach Rs. 111.9 billion as at the end of June 2015. Loans and advances grew by Rs 6.9 billion during the first half of the year at Rs 68.8 billion.