Sri Lanka DFCC Bank net up 39-pct in Dec 2020
ECONOMYNEXT – Profits at Sri Lanka’s DFCC Bank rose 39 percent to 716 million rupees in the December 2020 quarter, helped by lower operating expenses and provisions, despite a narrowing of margins, interim accounts show.
DFCC group reported earnings of 2.34 rupees per share for the quarter. For the year to December 2020 the group reported earnings of 9.0 rupees per share on total profits of 2.74 billion rupees, which grew 24 percent.
DFCC stocks were trading 2.80 rupees up at 65.90 rupees a share on February 18,2021.
Net interest income fell 22 percent to 2.4 billion rupees, with interest income down 12 percent to 9.16 billion and interest expense down 8 percent to 6,.7 billion.
Loan loss provisions were 499 million in the quarter down from 793 million rupees a year earlier.
In the year to December customer loans grew 11 percent to 301 billion. Non-performing loans grew to 2.32 percent from 2.07 percent.
DFCC said the NPL ratio at bank level grew to 5.56 in December from 4.85 in 2019.
State 03 impairments at bank level grew to 9.9 billion rupees by December 2020, from 8.4 billion rupees a year earlier. Including Stage 1 and 2 the total was 12.9 billion rupees, up from 9.9 billion rupees. Group level impaired assets climbed to 12.3 billion rupees from 12.4 billion rupees.
“DuringtheyearadditionalfocuswasmadeontheassessmentofadequacyofprovisionforExpectedCreditLoss(ECL)recognizedinthefinancialstatementsbasedontheinternalmodels,managementoverlaycomputedbasedonstresstestingtheexposurestoriskelevatedsectors,toaddressthepotentialimplicationsof COVID 19 Pandemic and the moratorium schemes introduced to support the recovery of the economy, the bank said.
Fee income fell seven percent to 649 million.
Trading gains grew 71 percent to 145 million rupees in the quarter.
The bank said in 2020 its classified a holding in Commercial Banks in the long term portfolio and its value will not be marked to market in the profit and loss account.
Customer deposits grew 25 percent to 309 billion rupees.
DFCC total assets grew 15 percent to 467 billion rupees.
Net assets grew five percent to 51.4 billion rupees. Tier I capital adequacy was 10.8 percent by December against a requirement of 8.0 percent down from 11.3 percent last year.
Total capital adequacy was 15.7 percent against a requirement of 12 percent, almost the same as 15.8 percent last year. (Colombo/Dec18/2021)