DFCC maintains profitability in 1stQ

The core business of DFCC Bank posted a profit before tax of Rs. 1,585 million and profit after tax of Rs. 1,124 million for the quarter ending March 2019 compared to profit before tax of Rs. 1,243 million and profit after tax of Rs. 1,034 million in the comparative period.

After accounting for the fair value loss on Commercial Bank of Ceylon PLC shares transferred to the trading portfolio, the bank reported a profit before tax of Rs. 1,001 million and profit after tax of Rs. 541 million in comparison to profit before tax of Rs. 1,277 million and a profit after tax of Rs. 1,068 million in the comparative period, the bank said in a media release.

Total operating income from core business amounted to Rs. 3,981 million for the quarter ending March compared to Rs. 3,713 in the comparative period in 2018 which is an increase of 7 per cent.

DFCC Bank sustained its aggressive branch expansion, launching seven new branches which include its first Super Grade Branch, at Lake House premises. Operating expenses increased from Rs. 1,579 million to Rs. 1,750 million compared to the corresponding period in the previous year.

DFCC’s NPL ratio moved up to 3.91 per cent by end March from 3.28 per cent in December 2018. “This reflected an industry- wide trend, which was consequent to the challenging business environment that prevailed during the period,” the bank said. DFCC’s deposit base experienced an increase of Rs. 6,321 million to Rs. 248,559 million by end March.