Financial Times

Subsidiaries, associates boost DFCC Bank profits
DFCC Bank has reported a pre-tax profit of Rs 767 million for the second quarter ended September 30, 2005, boosted by Rs 213 million profits from subsidiaries and associates.

“This is a considerable improvement on the performance for the first quarter, which recorded a 12 pc decline compared with the first quarter of the previous financial year,” a bank statement said quoting General Manager/Chief Executive Officer Nihal Fonseka.

During the period under review credit lines of EUR 20 million from KFW Germany and US$ 7.5 million from FMO Netherlands became operational. The liabilities however are denominated in rupees and therefore DFCC Bank is not exposed to any foreign exchange risk.

The non-audited group profit after tax for the six months ended September 30, 2005 was Rs 673 million, an increase of 21 percent over Rs 555 million in the previous comparable period (April to September 2004).

DFCC Bank profits include contributions from its associate company, Commercial Bank of Ceylon Limited and two subsidiaries, DFCC Stockbrokers (Pvt) Limited and DFCC Vardhana Bank Limited (DVB).

Their financial year ends on 31 December and the half year results for the period 1 April 2005 to 30 September 2005 include the results of these companies for the period 1 January 2005 to 30 June 2005.

DFCC Bank and DVB together increased net interest income increased by 20 percent to Rs 1,005 million from Rs 804 million in the previous comparable period.

The combined credit portfolio of both DFCC and DVB was Rs 34,010 million as at September 30, 2005 compared to Rs31,202 million as at March 31, 2005.
The combined customer deposits of both DFCC and DVB was Rs 8,090 million on 30 September 2005 compared to Rs 6,427 million on March 31, 2005.

The loans and leases of DFCC Bank approved but undisbursed was Rs7,332 million on September 30, 2005. The gross credit approvals including leases of Rs 8,835 million in the current period compared to Rs5,596 million in the comparable previous period.

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