Sri Lanka DFCC Bank profits down 20-pct in June quarter

ECONOMYNEXT – Profits at Sri Lanka’s DFCC Bank group fell 20 percent to 271 million rupees in the June 2019 quarter from a year earlier as bad loans picked up, despite gains on forward contract, interim accounts show.

DFCC group reported earnings of 1.06 rupees for the quarter. For the six months to June the group reported earnings of 3.28 rupees on total profits of 869 million rupees, which were down 39 percent.

The stock closed up 1.30 rupees at 99.30 rupees Tuesday.

Group interest income grew 15 percent to 10.7 billion rupees, interest expenses grew at a faster 17 percent to 7.62 billion rupees and net interest income grew at a slower 9 percent to 3.1 billion rupees.

Loans grew 5 percent to 262 billion rupees from December to June. Deposits grew 3 percent to 248 billion rupees.

Loan losses grew over four fold to 480 million rupees from 80 million rupees from a year earlier.

At bank level the gross non-performing loan ratio grew to 4.63 percent in June from 3.28 percent in December.

There was a 552 million rupee fair value gain while other operating income recorded a loss of 1.1 billion rupees in accounting for forex swaps.

Fee and other income were flat at 476 million rupees.

Gross assets grew 7 percent to 402 billion rupees from December to June. Net assets grew 4 percent to 47 billion rupees. Total capital adequacy was 16.5 percent against a requirement of 12.5 percent. (Colombo/July31/2019)
 

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