DFCC Bank records strong performance, posts Group PAT of Rs. 7 Bn

DFCC Bank PLC, the largest entity within the Group, reported an Operating Profit Before Taxes on Financial Services of LKR 10,693 million, Profit Before Income Tax (PBT) of LKR 8,305 million and a Profit After Tax (PAT) of LKR 5,498 million for the period ended September 302023.

This compares with an Operating Profit Before Taxes on Financial Services of LKR 2,269 million, PBT of LKR 1,420 million and a PAT of LKR 1,043 million in Q3 of 2022. The Group recorded an Operating Profit Before Taxes on Financial Services of LKR 11,069 million, PBT of LKR 9,938 Mn and PAT of LKR 7,064 million for the period ended 30 September 2023 compared to 2,612 million, LKR 1,762 million and LKR 1,320 million respectively, in 2022.

All the member entities of the Group made positive contributions to this performance. The Bank’s Return on Equity (ROE) increased to 11.66% during the period ended 30 September 2023 from 5.04% recorded for the year ended 31 December 2022.

The Bank’s Return on Assets (ROA) before tax for the period ended 30 September 2023 is 1.76% compared to 0.46% for the year ended 31 December 2022.

“DFCC Bank’s strong performance in Q3 of 2023, as evidenced by a remarkable 43% increase in total group operating income, underscores our commitment to delivering exceptional banking services in challenging times. We’re optimistic about the future, thanks to the Central Bank’s supportive policies, lower interest rates, and improved economic conditions,” CEO, Thimal Perera said.

The Bank’s Net Interest Income (NII) increased 26% over Q3 of 2022 to reach LKR 23,655 Mn by the end of September 2023. The Bank has also reduced both lending and deposit rates.

The interest margin increased from 4.95% in September 2022 to 5.45% by September 2023.

Fee income generated by credit cards also increased significantly, in line with the volume of the transactions. Accordingly, net fee and commission income have increased by 40% to LKR 2,848 Mn for the period ended 30 September 2023, compared to LKR 2,031 Mn for the comparative period in 2022.

Operating expenses for the period ended 30 September 2023 increased to LKR 8,370 Mn compared with LKR 7,382 Mn during the corresponding period in 2022. DFCC Bank’s total assets increased by LKR 28.7 Bn recording a growth of 5.07% from December 2022.

The Bank’s deposit base experienced a growth of 5.75% during the period, recording an increase of LKR 21.3 Bn to LKR 392 Bn, up from LKR 370 Bn as at 31 December 2022.

DFCC Bank’s total equity increased to LKR 65 Bn as at 30 September 2023.

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