DFCC Group net operating income, up 36% to Rs. 17 Bn, PAT up by 46% to Rs. 5.7 Bn

DFCC Bank PLC, the largest entity within the Group, reported a Profit Before Tax (PBT) of LKR 7,237 Mn and a Profit After Tax (PAT) of LKR 4,654 Mn for the period ended June 30, 2024 compared with the previous period’s PBT of LKR 5,110 Mn and a PAT of LKR 3,205 Mn.

The Group recorded a PBT of LKR 8,342 Mn and PAT of LKR 5,739 Mn for the period ended 30June 2024 as compared to LKR 5,867 Mn and LKR 3,923 Mn, respectively, in 2023. The Bank’s Return on Equity (ROE) improved to 12.16% during the period ended June 30, 2024 from 12.19% recorded for the year ended December 31, 2023.

The Bank’s Return on Assets (ROA) before tax for the period ended June 30, 2024 is 2.11% compared to 1.82% for the year ended December 31, 2023. The Bank’s total tax expense, which includes Value Added Tax (VAT) and Social Security Contribution Levy (SSCL) on financial services and Income Tax, is LKR 4,754 Mn for the period ending June 30, 2024. As a result, the

Bank’s tax expense as a percentage of operating profit for the period stood at 50.53%. During the period under review, DFCC Bank has continued to record good key performance indicators, reflecting the entity’s growth and stability amidst the ongoing revival of economic activity.

The Bank has reduced lending and deposit rates in line with the prevailing accommodative monetary policy stance. As a result, the lending portfolio has increased by 3% as of June 30, 2024.

CEO, DFCC, Thimal Perera, said, “Despite previously challenging economic conditions, which are improving, DFCC Bank has remained resilient, achieving robust financial growth. Our commitment to “profit with purpose” has driven a 46% increase in Group Profit After Tax, reaching LKR 5.7 billion, and a 36% rise in Group Net Operating Income to LKR 17 billion.”

The Net Interest Income (NII) in the first half of 2024 was significantly impacted by the Bank’s decision to lower interest rates, which led to an 11% reduction in NII.

With the changes in interest rates, the Bank has disposed of part of its government securities holdings classified as FVOCI to realise a gain of LKR 2.1 billion and the notable reduction in impairment as a result of the positive developments in the macroeconomic environment and recovery efforts made by the Bank enabled it to maintain profitability whilst providing high-quality customer centric banking services.

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