Record performance by DFCC Group
DFCC Group released its provisional results for FY 2014-15, which
showed a record performance that was achieved amidst a challenging
business environment, marked by intense competition and declining
interest margins.
Despite having to channel a substantial amount of time, effort and
resources to merger activities, the bank retained its focus on its core
business, resulting in this strong performance.
Group profit after tax increased 38% to Rs. 4.4 billion from Rs. 3.2
billion. Although there was a drop in net interest income, caused
primarily because DFCC's development banking model precluded the Bank
from maintaining current and savings accounts unlike other commercial
banks, overall operating income before VAT and NBT grew by 33% to Rs.
6.1 billion from Rs. 4.6 billion.
The growth in operating income was driven by a combination of
increased fees and other income and stringent control of costs. At the
same time, Earnings per Share grew by 38% to reach Rs. 16.46 from Rs.
11.89.
Meanwhile, total Group assets surpassed the Rs. 200 billion mark
rising to Rs. 211 billion from Rs. 175 billion in the previous period.
Besides DFCC Bank's and DFCC Vardhana Bank's exceptional
performance, the other subsidiaries in the DFCC Group - DFCC
Consulting, Lanka Industrial Estates and Synapsys, and the joint venture
- Acuity Partners, also reported excellent results and contributed well
to Group performance.
The current year marks the sixtieth anniversary of DFCC Bank PLC and
the Group will look at various options in transforming to a universal
bank, including an amalgamation between DFCC Bank PLC and its commercial
banking subsidiary - DFCC Vardhana Bank PLC, after receiving approvals.
During this journey, the DFCC Group will remain faithful to its roots in
development banking. |