DFCC Group records Rs. 2 Bn PAT
DFCC Bank PLC, the largest entity within the Group, reported a Profit Before Tax (PBT) of LKR 2,684 Mn and a Profit After Tax (PAT) of LKR 1,749 Mn for the quarter ended 31 March 2023. This compares with a PBT of LKR 143 Mn and a PAT of LKR 366 Mn in the previous period.
The Group recorded a PBT of LKR 3,001 Mn and PAT of LKR 2,062 Mn for the quarter ended 31 March 2023 as compared to LKR 326 Mn and LKR 527 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 10.88% during the quarter ended 31 March 2023 from 5.04% recorded for the year ended 31 December 2022. The Bank’s Return on Assets (ROA) before tax for the quarter ended 31 March 2023 is 1.63% compared to 0.46% for the year ended 31 December 2022.
The Bank’s Net Interest Income (NII), increased by 75% over Q1 of 2022 to reach LKR 8.34 Bn by the quarter end of March 2023. The tight liquidity conditions in the domestic money market have resulted in rising market interest rates.
The impairment charge recorded an increase of 67% against the comparative period and stood at LKR 4.69 Bn for the quarter ended 31 March 2023 compared to LKR 2.81 Bn.
Due to the application of hedge accounting, the impact on the bank equity due to the exchange fluctuation was minimized. A fair value gain of LKR 2,034 Mn was recorded on account of equity securities outstanding as at 31 March 2023.
Despite the challenges faced by the economy and the banking sector, DFCC Bank’s total assets increased by LKR 9.8 Bn, recording a growth of 1.75% from December 2022.
The Bank’s deposit base experienced a growth of 2.29%, recording an increase of LKR 8,490 Mn to LKR 378,805 Mn from LKR 370,314 Mn as at 31 December 2022. This resulted in recording a loan to deposit ratio of 104.33%. Further the CASA ratio is 18.05% as at 31 March 2023.
DFCC Bank’s total equity increased to LKR 57 Bn as at 31 March 2023 with the recorded profit after tax of LKR 1.75 Bn.
“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, which bodes well for the overall economic situation of Sri Lanka,” said Director/Chief Executive Officer, Thimal Perera.