DFCC Bank group profit up 18% to Rs. 796 m in six months

The non-audited group profit after tax, attributable to equity holders of DFCC Bank, for the six months ended September 30, 2006 (current period) was Rs. 796 million, an increase of 18% over the Rs. 673 million in the previous corresponding period (April to September 2005).

Composition of Group PAT in the consolidated financial statements attributable to equity holders of DFCC Bank is given below. In the consolidated financial statements the reported profit before tax and after tax is adjusted for inter company dividends, and other consolidation adjustment, which are eliminated in the consolidation process.

* Mainly Commercial Bank of Ceylon Limited. The PAT of National Asset Management Limited included under Associated companies in the current period is Rs. 0.518 million.

Due to changes to accounting statements that came into effect during this financial year, DFCC Bank's own financial statements account for its investments in subsidiaries and associate companies at cost. Thus, these investments, which hitherto were accounted under equity method of accounting, have been restated with corresponding adjustments to the retained profit and reserves of the Bank.

The financial year of the associate company, Commercial Bank of Ceylon Limited (CBC) and two subsidiaries, DFCC Stockbrokers (Pvt) Limited and DFCC Vardhana Bank Limited (DVB) ends on December 31.

Thus the half year results for the period April 1, 2006 to September 30, 2006 includes the results of these companies for the period January 1, 2006 to June 30, 2006. The profit before Value Added Tax and Income Tax expense was Rs. 1,010 million in the current period, an increase of 35 pc over Rs. 750 million in the corresponding period.

This increase was achieved despite significantly lower gains on sale of investment securities during the current period. Gains on sale of investment securities during the current period was Rs. 7 million compared to Rs. 102 million in the corresponding period.