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Friday June 14th, 2024

Sri Lanka’s DFCC Bank profits halve on bad loans, interest costs

ECONOMYNEXT- Net profits at Sri Lanka’s DFCC Bank Plc fell 54 percent to 516.14 million rupees in the December quarter on higher interest costs and bad loan provisioning, interim financials showed.

The group reported 1.76 rupees in earnings per share for the quarter. DFCC earned 7.62 rupees a share for 12 months ended December, on net profits which fell 26 percent to 2.21 billion rupees.

DFCC’s share closed 10 cents down at 84 rupees on the Colombo Stock Exchange on Monday.

Gross income for the quarter grew 4 percent to 11.41 billion rupees.

Interest income grew 1 percent to 10.41 billion rupees on price controls on loans, while interest expenses increased at a faster 7 percent to 7.26 billion rupees, leading to net interest income falling 10 percent to 3.15 billion rupees.

Bad loan provisioning grew 164 percent to 813.5 million rupees.

Bank-level bad loans grew to 4.85 percent from 3.28 percent, marginally above the industry average of 4.7 percent.

The group loan book grew 9 percent to 272.81 million rupees, while deposits expanded at a slower 2 percent to 247.46 million rupees.

Net fee and commission income grew 15 percent to 654.56 million rupees.

Net gains from trading fell 78 percent to 85 million rupees on lower gains from foreign exchange trading with banks and marked to market losses in a Commercial Bank stake held by DFCC.

A net loss of 107.03 million rupees on financial instruments at fair value through profit or loss was recorded, from a 470.34 million rupee gain a year earlier.

Net other operating income grew to 231.7 million rupees from a 753.91 million rupee loss on gains from reverse repo transactions and lower foreign exchange losses.

Income tax expenses fell 59 percent to 170.29 million rupees.

DFCC’s return on equity fell to 4.5 percent from 6 percent.

Group Tier 1 capital grew to 11.327 percent from 10.888 percent while the minimum requirement was 8.5 percent.

Total capital ratio fell to 15.778 percent from 16.168 percent against a minimum of 12.5 percent. (Colombo/Feb24/2020)

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Sri Lanka opposition leader proposes Grama Rajya system in addition to 13A

Opposition leader Sajith Premadasa (r) – File photo

ECONOMYNEXT — Sri Lanka opposition leader Sajith Premadasa has proposed devolving power to the village level through a Grama Rajya system in addition to implementing the 13th amendment to the constitution.

Speaking at an event in Jaffna on on Wednesday June 12, Premadasa said all provinces will benefit from the 13th amendment.

“Whatever one’s ethnicity, religion, status or region, this country has citizens of equal level. They’re all Sri Lankan citizens.

“There is no division or grouping.  As we give you and every other province what you should be given through the 13th amendment, we must implement a Grama Rajya system,” Premadasa said, addressing a crowd of school children and other attendees.

Premadasa’s assurance of implementing the 13th amendment has already drawn some protest in the south.

A collective of civil society organisations held a protest outside the office of the leader of the opposition in Colombo on Thursday June 12.

Calling itself the ‘Coalition Against Partition of Sri Lanka’, the group carrying national flags marched up to the opposition leader’s office Thursday June 13 morning and demonstrated against the full implementation of the 13th amendment.

“We arrived here today to hand over a missive against devolving police powers, land powers and judicial powers. If Mr Premadasa is inside, come outside,” Jamuni Kamantha Thushara, Chairman of the Citizen’s Movement Against Fraud, Corruption, and Waste, was seen declaring at the site.

“First of all, tell us what we stand to achieve by dividing and giving away the north and east,” said another protestor, warning against bringing the 13th amendment “anywhere here (paththa palaathe)”.

A police officer at the scene the protestors that a secretary to the opposition leader was ready to accept their letter.

“In Kilonochchi, he says the 13th amendment will be implemented. The votes in the north are going to be decisive this election. To win those votes, President Ranil Wickremesinghe, Sajith and Anura Kumara Dissanayake all say they will implement the 13th. We will not allow this country to be divided into nine pieces,” said Thushara.

Ven Balangoda Kassapa Thero, who was arrested on June 06 during a protest against the new Electricity Act, was also seen at Thursday’s protest. The Buddhist monk requested for a debate with Premadasa on the matter of the 13th amendment. (Colombo/Jun12/2024)

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Sri Lanka rupee closes flat at 303.85/95 to US dollar

ECONOMYNEXT – Sri Lanka’s rupee closed broadly flat at 303.85/95 to the US dollar on Thursday, from 303.80/304.00 to the dollar the previous day, dealers said. Bond yields were down.

A bond maturing on 15.12.2026 closed at 10.00/30 percent, down from 10.20/40 percent.

A bond maturing on 15.10.2027 closed at 10.60/75 percent.

A bond maturing on 01.07.2028 closed at 11.00/15 percent, down from 11.15/40 percent.

A bond maturing on 15.09.2029 closed at 11.80/85 percent.

A bond maturing on 15.05.2030 closed at 11.85/12.05 percent, down from 11.90/12.05 percent.

A bond maturing on 01.10.2032 closed stable at 11.95/12.15 percent. (Colombo/Jun13/2024)

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Sri Lanka sells Rs295bn in 2027 to 2031 bonds

ECONOMYNEXT – Sri Lanka has sold 295 billion rupees in 2027, 2029 and 2031 bonds, data from the state debt office showed.

The debt office sold an offered 60 billion rupees of 15 October 2027 at an average yield of 10.30 percent.

All offered 125 billion rupees of 15 September 2029 bonds were sold at 11.00 percent.

All 110 billion rupees offered of 01 December 2031 bonds were sold at 12.00 percent. (Colombo/May13/2024)

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