DFCC Vardhana Bank PAT up by 92.5%

DFCC Vardhana Bank's profit before tax (PBT) amounted to Rs 708.5 million during 2011 recording an increase of 31.5 percent compared with the PBT of Rs 538.8m in 2010. The provision for taxation amounted to Rs 177m. The effective tax rate was 24 percent of PBT down from 51 percent in 2010.

Profit After Taxation (PAT) attributable to the shareholders amounted to Rs 531.4m reflecting an increase of 92.5 percent over the PAT of Rs 276m over the previous year. The earnings per share (EPS) increased by 73.3 percent to Rs 2.6 in 2011 from Rs 1.50 in 2010 while the return on assets (ROA) was 1.4 percent up from 0.9 percent in 2010.

In terms of asset growth and profit generation during the year, DVB delivered a sound financial performance. Total assets increased by 55.6 percent to Rs 45,940m as at December 31 2011. This growth was driven by the increase in loans and advances. The favourable macro-economic conditions and positive investment sentiments supported the rapid increase in loans and advances.

Interest income from loans and investments amounted to Rs 3,733m showing an increase of 10.8 percent, despite low interest rates, benefiting from the balance sheet growth. The income streams have begun to be diversified with the addition of pawning advances, housing loans, financial leases, credit card advances and other PFS products.