DFCC 1Q2017 sees 42% hike in net profit

The DFCC Group saw its first quarter 2017 consolidated post- tax profit rise by 42 per cent to Rs. 1.37 billion from the same end March quarter in 2016, the company said last week.

From this the bank's posttax profit alone rose by 45 per cent to Rs. 1.34 billion in the period under review.

The group comprises DFCC Bank PLC and its subsidiaries - Lanka Industrial Estates Ltd, DFCC Consulting ( Pvt) Ltd and Synapsys Lyd, Acuity Partners ( Pvt) Ltd; the joint venture company and National Asset Management Ltd, the associate company.

Following its amalgamation with DFCC Vardhana Bank, DFCC Bank is now a fully- fledged commercial bank that offers a range of products and services across customer segments with specialised expertise in development banking, the group said in a media release.

Net interest income grew by 44 per cent to Rs. 2.58 billion from Rs. 1.78 billion while net fee and commission income increased by 16 per cent to Rs.343 million.

Commenting on t he results, Arjun Fernando - CEO, DFCC, said, "Whilst the first quarter results indicate an improvement to the comparable period of last year, we are forging ahead with new initiatives to reach greater milestones in 2017. Whilst planning our growth strategy we have set into motion an array of financially prudent measures, customised financial solutions, digitalisation initiatives, branch expansion and other deposit mobilisation schemes to position ourselves in the consumer banking landscape".

Year on year, the bank's lending portfolio has grown by Rs. 23.61 billion to Rs. 187.11 billion.