DFCC Group records Rs 637m PAT in three months
The DFCC Group recorded a consolidated profit after tax of Rs. 637m
for the three months ended June 30, 2015 compared with Rs.1,138m in the
corresponding period of the previous year. The previous period included
a one-off adjustment due to a change to the impairment assessment
process.
The Banking Business comprising the DFCC Bank (DFCC), a licensed
specialized bank and its 99% owned subsidiary DFCC Vardhana Bank PLC (DVB),
a licensed commercial bank contributed Rs. 643m to profit after tax. The
contribution from all other subsidiaries, joint venture and associate
company collectively was Rs.1m.
The Banking Business of the DFCC Group is undertaken by DFCC and DVB.
Both banks function as one economic entity and as such it is appropriate
to analyse the consolidated performance of the two banks as DFCC Banking
Business (DBB).
A consolidated Income statement for DBB has been released to the
Colombo Stock Exchange as supplementary financial information.
This statement was derived from the interim financial statements.
Since the financial year of DVB ends in December, the accounts of DVB
are consolidated with a three-month lag. DBB recorded a profit after tax
(PAT) of Rs.643 m during the current quarter. The PAT for the previous
corresponding period included an adjustment arising from a change to the
impairment assessment processes which contributed Rs.553 m to PAT.
The PAT for the current period of Rs. 643 is an increase of 20% over
that for the previous period excluding the one-off adjustment referred
to above.Net Interest Income (NII) of DBB for the period increased 4%
from Rs.1,693m to Rs.1,757m.
DBB also achieved a credit growth of 4% during the quarter to June
30, 2015. Net fee and commission income of DBB in the current period
increased by 23% to Rs.259m compared to Rs.211m in the previous
corresponding period. Fee income is generated largely by DVB the
commercial banking subsidiary from trade finance and commercial banking
services.
The gain on sale of equity securities by the Bank was Rs.37m compared
to Rs.100m in the corresponding period.
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