DFCC post-tax profits drop in 1Q2019, but positive on growth
View(s):The DFCC group, for the quarter ended 31 March 2018, recorded a pre-tax profit of Rs. 1,545 million and post-tax profit of Rs. 1,110 million, down from Rs.1,647 million and Rs. 1,301 million respectively in the comparative period in 2017.
In terms of the bank alone, the post-tax profit was Rs. 1,074 million compared to a higher Rs. 1,267 million in 2017, the group said in a media release.
A growth of 17 per cent was recorded in total operating income amounting to Rs. 4,093 million for the quarter ended 31 March 2018 compared to Rs. 3,503 million in the comparative period in 2017. However due to the higher charge for impairment as a result of the bank’s prudent provisioning policies, the net operating income recorded a growth of just 4 per cent.
DFCC said it achieved a notable growth in its core business operations during the quarter under review. During the current period, net interest income grew by 29 per cent to Rs.3,342 million from Rs. 2,581 million in the 1st quarter of 2017.
Operating expenses increased by 18 per cent to Rs. 1,579 million due to branch expansion and business promotions that were carried out during the first quarter 2018.
The bank’s loans to and receivables from other customers (loans and advances) grew by Rs. 35,475 million to Rs. 222,588 million, up by 19 per cent.
An increase in the bank’s deposit base was due to increased growth in time deposits versus savings which is reflected in the first quarter.
Commenting on DFCC Bank’s financial results, Lakshman Silva – CEO, DFCC Bank, said,
“The overall performance of the quarter indicates that DFCC Bank is well positioned to serve the nation as a commercial bank through a range of financial services that will promote wealth creation across the country. Whilst planning our growth strategy we have set into motion an array of financially prudent measures, digitalisation initiatives, customised financial solutions coupled with convenience, branch expansion and other innovative products and services to position ourselves to becoming the preferred consumer bank in the banking landscape.”