Editorial

Security

Politics

World

Letters

Sports

Obituaries

Archives

The DFCC Bank has recorded a non-audited after tax group profit of Rs 826 million during the nine months ending December 2002. It is an increase of 36 per cent or Rs 605 million over the same period of 2001.

The bank benefited from the improvement of Profit After Tax (PAT) of its associate company Commercial Bank of Ceylon Ltd and higher contributions from its subsidiaries to record a 30 per cent increase in the composite PAT to Rs 826 million for 2002 compared to the adjusted composite PAT of Rs 633 million compared to the same period of 2001.

Gains on the sale of securities and the fee earned as financial adviser to implement the second stage privatisation of Sri Lanka Telecom contributed to a 40 per cent boost to other income compared to the same period of the previous year.

A combination of a relatively low interest rate regime and the continuing progress of the peace initiative has created a climate where credit demand for new projects are increasing though slowly, General Manager and Chief Executive Officer of DFCC Bank Nihal Fonseka said.

Since interest income on customer advances account for a significant portion of the bank's income, the falling interest rate regime resulted in a decline of operating profit before provision by 11 per cent compared to the same period of 2001. The cumulative gross provision charged to income for the current period was Rs 311 million, 17 per cent lower than the previous year."

The gross provision tend to reduce over time when there is no significant increase in the unsecured portfolio through new entrants. The cumulative specific and general provision for loans was 4.7 per cent of the loan portfolio on December 31, 2002 compared with 4.9 per cent an year ago. Reduction in provisions due to recovery of previously provided advances was Rs 76 million during the current period compared to Rs 72 million in the same period of the previous year.

The interim results of the first and second quarters showed a year-on-year decline of the profit before tax of the bank's own operations. It has been possible to reverse this trend and post a cumulative profit before income tax of Rs 707 million on the bank's own operations, a year-on-year increase of four per cent. Since there is no income tax surcharge in the current financial year unlike the previous financial year, the adjusted profit after tax of the bank's own operations improved by 22 per cent compared to the same period of 2001.

The gross loan portfolio at end-December 2002 was Rs 19.1 billion. It was an increase of seven per cent or Rs 1.3 billion compared to the same period of 2001. The gross financial lease portfolio too recorded an year-on-year growth of 17 per cent. The undisbursed approvals on loan portfolio and lease portfolio in December 2002 was Rs 3.7 billion.

News | Business | Features | Editorial | Security
Politics | World | Letters | Sports | Obituaries

Produced by Lake House
Copyright 2001 The Associated Newspapers of Ceylon Ltd.
Comments and suggestions to :Web Manager