DFCC Bank Group operating income up by 22% to Rs. 24 Bn
DFCC Bank PLC, the largest entity within the Group, reported a Profit before Tax (PBT) of LKR 9,559 Mn and a Profit After Tax (PAT) of LKR 6,013 Mn for the period ended 30 September 2024 compared with the previous period’s PBT of LKR 8,305 Mn and a PAT of LKR 5,498 Mn.
The Group recorded a PBT of LKR 9,909 Mn and PAT of LKR 7,128 Mn for the period ended 30 September 2024 as compared to LKR 8,681 Mn and LKR 7,064 Mn, respectively, in 2023.The Bank’s Return on Equity (ROE) improved to 10.82% during the period ended 30 September 2024 from 12.19% recorded for the year ended 31 December 2023.
The Bank’s Return on Assets (ROA) before tax for the period ended 30 September 2024 is 1.86% compared to 1.82% for the year ended 31 December 2023.
The lower interest rates have resulted in reduced interest income and expenses compared to the comparable period of 2023.The Bank’s Net Interest Income (NII), its core business, decreased by 12% to reach LKR 20,734 Mn by the end of September 2024.
Operating expenses for the period ended 30 September 2024 increased to LKR 10,848 Mn compared with LKR 8,370 Mn during the corresponding period in 2023, primarily due to the increase in inflation and the adjustment to staff benefits. However, the Bank has taken numerous cost control measures, resulting in operating expenses being managed at these levels.
The DFCC Bank’s total assets increased by LKR 35 Bn, recording a growth of 6% from December 2023.In line with the Bank’s growth strategy and the current economy, an increase in investment in fixed-income securities has contributed to a 50% increase in investment in financial assets at an amortized cost of LKR 102 Bn as at 30 September 2024, compared to the balance as of 31 December 2023.
Further, The Bank’s net loan portfolio growth of LKR 34 Bn to LKR 383 Bn compared to LKR 349 Bn as at 31 December 2023, an increase of 10%, contributed to the asset growth during the period.
“With a 22% increase in Group Net Operating Income and a substantial 69% reduction in impairment charges, we have successfully managed to maintain the bank’s profitability by effectively managing impairments and optimizing our interest income and fee income strategy,” said Director/Chief Executive Officer Thimal Perera.
“This quarter’s major milestone was the issuance of Sri Lanka’s first listed and rated Green Bond, underscoring our commitment to sustainability and the trust our stakeholders place in us.”
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