DFCC Bank reports sound performance and growth
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Bank CEO Lakshman Silva
DFCC Bank, against a backdrop of an extremely challenging environment and in supporting the efforts by the Government to uplift and stabilise the economy, concluded the quarter ended March 31, 2021 with a sound performance and growth.
The DFCC Group comprises DFCC Bank PLC (DFCC), and its subsidiaries – Lanka Industrial Estates Ltd (LINDEL), DFCC Consulting (Pvt) Ltd (DCPL) and Synapsys Ltd (SL), the joint venture company – Acuity Partners (Pvt) Ltd (APL) and associate company – National Asset Management Ltd (NAMAL).
DFCC Bank PLC, the largest entity within the group, reported a profit before tax (PBT) of Rs.1,915 million and a profit after tax (PAT) of Rs.1,479 million for the quarter ending March 2021. This compares with a PBT of Rs.1,295 million and a PAT of Rs. 925 million in the comparative (end March 2020) period, the bank said in a statement.
The group recorded a PBT of Rs.2,036 million and PAT of Rs.1,583 million for the quarter compared to Rs.1,408 million and Rs.1,014 million respectively in the comparative period in 2020.
Lakshman Silva, Group CEO said:“Given the ongoing uncertainties we will pursue growth. Our focus will be to engage with our customers and ensure that we will be their pillar of strength to help them achieve success during these unprecedented times. We will also continue to expand our digital footprint to offer ease and convenience to our customers as we have now adopted the best practices in the industry and implemented systems to meet the future challenges that we foresee in the new normal.”
The bank reported Rs.2,679 million in net interest income (NII) which is a 10 per cent decline year on year primarily due to the drop in AWPLR more than 370 bps over the past 12 months and due to the business implications that arose with the pandemic situation.
“The economic activities have been operating uninterrupted to a large extent during the current period compared with the comparative period which involved a stringent lockdown situation. The bank was able to use the opportunities created in the market with a concentrated effort to increase non-funded business and the effort was rewarded with an increase of fee and commission income to Rs.651 million for the quarter from Rs.548 million in the comparative period,” the statement said.
Impairment provision decreased to Rs. 356 million for the quarter from Rs.637 million in the comparable period.