DFCC Bank reports strong 3Q amidst successful expansion drive
View(s):DFCC Bank continued to demonstrate positive momentum across business in the 3rd quarter of 2017 as a rapidly emerging full service commercial bank, it said in a media release.
The group closed the nine months to September 2017 with a 24 per cent year-on-year growth in profit before tax of Rs. 4,377 million.
Group profit after tax (PAT) for the third quarter declined by Rs. 525 million against the same 2016 period. This is mainly due to the bank’s higher impairment provision and increased cost due to expansion. However, over the 9-month period, the group recorded a consolidated PAT growth of 26 per cent amounting to Rs. 3,391 million.
The bank said it recorded growth across all its income segments, with a 31 per cent increase in operating income year-on-year. Its net interest income rose by 32 per cent to Rs. 8,228 million buoyed by improvements to the net interest margin.
The DFCC group comprises the bank and its subsidiaries – Lanka Industrial Estates Ltd, DFCC Consulting (Pvt) Ltd and Synapsys Ltd, joint venture company – Acuity Partners (Pvt) Ltd (APL) and associate company – National Asset Management Ltd (NAMAL).
DFCC said it continued to penetrate the market by expanding its branch network to be more accessible to customers. During the nine months ended September 2017, the bank opened 12 fully-fledged branches across the country.
“This coupled together with extensive business promotions, new savings products, and investments in IT system modernisations have contributed towards expanding delivery channels and improving service deliverables,” the release added.
“The results of these investments are already evidenced in the lending and deposit growth as at end September 2017. The rapid loan portfolio growth to Rs. 202,676 million by end September 2017 was outshone by the 33 per cent year to date deposit growth, which swelled total deposits to Rs. 187,171 million by end September 2017,” it said.