Sri Lankaâ€™s DFCC Bank December quarter net profit up 35-pct
ECONOMYNEXT – Sri Lanka’s DFCC Bank said group net profit rose 35% to Rs1 billion in the December 2017 quarter from a year ago.
Interest income rose 25% to Rs9 billion while interest expenses rose 31% to Rs5.9 billion with net interest income up 17% to Rs3.1 billion, according to interim accounts filed with the stock exchange.
Quarterly earnings per share doubled to Rs5.84. DFCC Bank’s share traded at Rs121.70 Tuesday.
EPS for the year to December 2017 were Rs16.45, up from Rs12.88 the year before with net profit up 28% to almost Rs4.4 billion.
Value added tax and nation building tax on financial services rose by almost half to Rs986 million in the 2017 year.
DFCC Bank chief executive Lakshman Silva said profits grew “despite higher taxes, volatile interest rates, tight margins and intensifying competition.”
The bank’s net fee and commission income grew by 22% to Rs1,591 million during 2017,
At bank level, loans grew 15% to Rs214 billion as 31 December 2017 from the previous year while deposits grew 38% to Rs193 billion.
The bank’s low cost deposits (CASA) ratio increased to 21.3% from 20.2% in 2016, Silva said.
“This was aided by a successful drive to increase the current and savings base in the retail banking space with a range of innovative products and services, an aggressive sales force and an expansion of delivery channels which contributed to enhanced business volumes.”
The bank’s CASA deposits increased by Rs9.4 billion during the 4th quarter while it continued to enjoy long term concessionary credit lines which improved the ratio from 21.3% to 30.1% as at December 2017.
The bank’s impairment charge increased by Rs239 million (26%) over the previous year mainly due to the growth in loan portfolio.
The bank’s non-performing advances (NPA) ratio as at 31st December 2017 improved to 2.77% compared to 2.97% in December 2016.
“Due to the prudent recovery processes implemented and close monitoring, the bank has been able to contain the build-up of non performing advances,” Silva said.
(COLOMBO, February 20, 2018)