DFCC maintains steady course despite turbulence
View(s):DFCC Bank’s core business posted a pre-tax profit of Rs. 2,056 million and post-tax profit of Rs. 1,588 million for the 6-month period ending June 30, 2019 compared to pre-tax profit of Rs. 2,373 million and post-tax profit of Rs. 1,837 million in the 2018 comparative period, recording a drop in pre-tax and post-tax profits this year, so far.
The bank recorded total operating income from core business amounting to Rs. 7,037 million for the review period compared to Rs. 6,867 in the comparative period in 2018, an increase of 2 per cent. After accounting for the impact of high fair value loss in the investment of Commercial Bank of Ceylon PLC, the operating income reflects a decline of 5 per cent, the bank said in a media release.
Further, a growth of 4 per cent was recorded in fees and commission income to Rs. 945 million against Rs. 906 million earlier. Operating expenses increased from Rs. 3,175 million to Rs. 3,523 million.
DFCC’s NPL ratio moved up to 4.63 per cent as at June 30 from 3.28 per cent in December 2018. “This reflected an industry-wide trend, which was consequent to the challenging business environment that prevailed during the period. The ratio has however been managed at a level below the industry average,” the release said.
DFCC’s deposit base experienced a growth of 5 per cent recording an increase of Rs. 12,328 million to Rs. 254,566 million from Rs. 242,238 million as at December 2018. “This is not only a reflection of customers’ confidence in the bank, but also the outcome of the investment in developing distribution channels and marketing innovative new products,” it said.