ECONOMYNEXT – Profits at Sri Lanka’s DFFC Bank group fell 68 percent from a year earlier to 230 million rupees in the December 2022 quarter, with higher loan losses and negative other operating income eroding gains in net interest income.
The group reported earnings of 72 cents per share for the quarter.
During the year to December 2021, DFCC reported on earnings of 11.17 rupees, on total profits which grew 29 percent to 3.5 billion rupees.
DFFC said net interest income grew 61 percent to 3.9 billion rupees, with interest income growing 9 percent to 9.97 billion rupees and interest expenses falling 10 percent in the December quarter.
Customers loans grew 21 percent in the year to 365.9 billion rupees.
Loan loss provisions in quarter was 1.3 billion rupees up from 529.4 million a year earlier.
The non-performing loan ration was 5.6 percent at bank level.
At bank level Tier I capital adequacy ratio fell to 9.3 percent by December 2021 from 10.8 percent in December 2020.
Total capital adequacy fell to 13 percent at the end of the financial year, compared to 15.8 percent a year ago.
The group said its net assets value per share dropped by 4 percent to 160.51 rupees in the last quarter.