ECONOMYNEXT – Profits of Sri Lanka’s DFCC Bank group grew 76 percent to 835 million rupees in the September 2019 quarter from a year earlier, despite flat net interest income on helped by valuation changes in assets, interim accounts showed.
The bank reported earnings of 3.0 rupees per share for the quarter. In the nine months to September the group reported earnings of 6.18 rupees per share on total profits of 1.69 billion rupees, which were down 11 percent.
Interest income grew 10 percent to 10.6 billion rupees in the September 2019 quarter, and interest expenses grew 14 percent to 7.57 billion rupees, and net interest income grew 1 percent to 3.12 billion rupees.
Loans grew 8 percent to 270 billion rupees from December to September.
Sri Lanka’s central bank slapped price controls on both deposit and lending rates, but deposit controls have since been removed.
Loan loss provisions rose to 304 million rupees from 43 million a year earlier.
Fees and commission income grew 2 percent to 523 million rupees. There were fair value losses of 796
million rupees, against a gain of 2.1 billion rupees.
For the nine months fair value losses were 2.5 billion rupees, against gains of 2.1 billion rupees last year.
The firm said its share portfolio lost value in 2019 due to falls in the price of commercial bank while fixed income securities made capital gains as interest rates fell.