An Echelon Media Company
Sunday June 20th, 2021
Banking

Sri Lanka DFCC Bank December net up 90-pct

EconomyNext – Sri Lanka’s DFCC Bank said December 2014 quarter net profit rose 90 percent to 1.5 billion rupees from a year ago helped by capital gains from share sales and higher fee income despite lower interest income.

Basic earnings per ordinary share for the quarter were 5.67 rupees against 2.99 rupees previously, interim results filed with the stock exchange showed.

In the nine months ending 31 December 2014, DFCC Bank’s EPS were 13.34 rupees with net profit up 79 percent to 3.5 billion rupees.

In the December 2014 quarter DFCC Bank’s interest income fell 14.7 percent to 3.9 billion rupees while interest expenses fell 15.4 percent to 2.2 billion rupees resulting in net interest income falling 13.6 percent to 1.6 billion rupees.

Net fee income rose 32 percent to 299 million rupees in the quarter with the net gain from sale of securities shooting up 348 percent to 1.1 billion rupees.

The group’s banking business consists of DFCC Bank, a licensed specialized bank and its DFCC Vardhana Bank commercial bank subsidiary.

Fee income, generated largely by DVB from trade finance and commercial banking services, includes consultancy fees earned from overseas assignments.

"Capitalizing on the upward momentum in the stock market, on 31 October 2014 the bank divested the entire holding of 9.92 percent ordinary voting shares of Nations Trust Bank PLC and realized a capital gain of 829 million rupees," Chief Executive Arjun Fernando said.

"The bank was able to divest some of the other mature equity holdings as well and generate a further capital gain of 306 million rupees during the period."

Fernando said DFCC Bank’s investment banking joint venture, Acuity Partners (Pvt) Limited, contributed 141 million rupees in the nine months, up from 82 million in the comparable period.

In the banking business, credit grew 14 percent during the nine-month period while Net Interest Income (NII) fell by 16 percent to 4,989 million rupees.

"Unlike in commercial banks our funding is mainly through long term borrowing sources," Fernando said.

"As such the reduction in NII was mainly due to the drop in lending interest rates which were warranted by market conditions and the time lag in re-pricing of the long term borrowings."
 

Leave a Comment

Your email address will not be published. Required fields are marked *

Your email address will not be published. Required fields are marked *

Comments

Leave a Comment

Your email address will not be published. Required fields are marked *

Your email address will not be published. Required fields are marked *