DFCC Group recordes PAT of Rs. 3.7 bn
DFCC Bank PLC, the largest entity within the Group, reported a profit before tax (PBT) of LKR 4,326 million and a profit after tax (PAT) of LKR 3,222 million for the year ended December 31, 2021. This compares with a PBT of LKR 3,398 Mn and a PAT of LKR 2,388 Mn in the year prior.
The Group recorded a PBT of LKR 4,859 Mn and a PAT of LKR 3,665Mn for the year ended 31December 2021, compared with LKR 3,944 Mn and LKR 2,847 Mn, respectively, in 2020. All the member entities of the Group made positive contributions to this performance.
The basic earnings per ordinary share (EPS) of the Bank improved to LKR 10.14 for the year ended 31December 2021 from LKR 7.83 for the comparative year 2020, recording an increase of 29%.
The Bank’s Return on Equity (ROE) improved to 6.55% during the year ended 31December 2021 from 4.93% recorded for the year ended 31 December 2020.
The Bank recorded LKR 12,653 Mn in net interest income (NII), which is a 15% increase year on year. This contributed to an increase in interest margin from 2.53% in December 2020 to 2.66% in December 2021.
Impairment provisions for the year ended 31December 2021 was LKR 4,485 Mn compared to LKR 3,298 Mn in the year prior. The NPL ratio increased from 5.56% in December 2020 to 5.60% in December 2021.
The Bank’s operating expenses increased from LKR 7,387 million during the year prior to LKR 8,381 million during the year under review.
Despite the challenging business environment, the Bank continued its growth strategy by increasing both its deposit and loan portfolios during the year ended31December 2021. The loan portfolio grew by LKR 63,991 Mn to record LKR 365,901 Mn compared to LKR 301,909 Mn as at 31 December 2020, recording an increase of 21%. The Bank’s deposit base also experienced a growth of 3%, recording an increase of LKR 9,834 Mn to LKR 319,861 Mn from LKR 310,027 Mn as at 31 December 2020. This resulted in recording a loan to deposit ratio of114%.
Funding costs of the Bank were also contained by using medium to long-term concessionary credit lines.
“Ensuring that we run our business responsibly, delivering profit with purpose, DFCC Bank will always place our customers at the forefront of everything we do. As a customer centric, digitally enabled bank, we will continue to be a source of stability to our customers and deliver value through an unmatched, top-of-the-line customer experience,’ said Director / Chief Executive Officer Thimal Perera.
“In line with our stated vision, the Bank embarked upon implementing a state of the art, core banking system which went live in October 2021.”