DFCC Group records PAT of Rs. 3.9 Bn for 1H 2023

Chairman J Durairatnam and Director, CEO Thimal Perera

DFCC Bank the largest entity within the Group, recorded a resilient performance for the 1st half of 2023 posting a Profit Before Tax (PBT) of LKR 5,110 Mn and a Profit After Tax (PAT) of LKR 3,205 Mn for the period ended June 30, 2023.

This compares with a PBT of LKR 331Mn and a PAT of LKR 513Mn in 1H of 2022. The Group recorded a PBT of LKR 5,867 Mn and PAT of LKR 3,923Mn for the period ended June 30, 2023 compared to LKR 690 Mn and LKR 824 Mn, 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 10.52% during the period ended June 30, 2023 from 5.04% recorded for the year ended December 31, 2022.

The Bank’s net fee and commission income have increased by 64% to LKR 1,945 Mn for the period ended 30 June 2023, compared to LKR 1,183 Mn for the comparative period in 2022. The impaired loan (stage 3) ratio increased from 4.36% in December 2022 to 5.58% as of June 30, 2023, a continuation of the prevalent trend amidst the present economic conditions.

Operating expenses for the period ended June 30, 2023 rose primarily due to the increase in inflation. However, the Bank has taken numerous cost control measures within the Bank, resulting in operating expenses being curtailed and managed at these levels. Despite the challenges faced by the economy and the banking sector, DFCC Bank’s total assets increased by LKR 8.1Bn, recording a growth of 1.42% from December 2022. The net loan portfolio was recorded at LKR 342Bn as at 30June 2023, which is 7% lower than the balance as at December 31, 2022.

The Bank’s deposit base experienced a growth of 3.21% during the period, recording an increase of LKR 11.9 Bn to LKR 382Bn, up from LKR 370Bn as at December 31, 2022. This resulted in recording a loan-to-deposit ratio of 100.39%.

“We are confident that our robust growth strategy and prudent risk management practices will enable us to continue delivering sustainable value to our stakeholders in the long term, helping to support Sri Lanka’s economy as it enters into a period of significant recovery, supported by strong macroeconomic fundamentals,” Director, Chief Executive Thimal Perera said.

DFCC Bank’s total equity increased to LKR 59 Bn as at 30 June 2023, supported by favourable movements in the equity portfolio and fixed income security and positive movements in the hedging reserve, together with the recorded profit after tax of LKR 3.2 Bn.

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