DFCC Group records Rs.2,374 m PAT in nine months

The DFCC Group recorded a consolidated profit after tax of Rs. 2,374m for the nine months ended December 31, 2012 compared to Rs. 2,204m in the corresponding period of the previous year.

The Banking Business of the DFCC Group is undertaken by DFCC Bank (DFCC), a licensed specialised bank and 99 percent owned subsidiary DFCC Vardhana Bank (DVB), a licensed commercial bank.

Apart from the DBB which contributed Rs. 2,215 m to profit after tax (based on partial consolidation in the supplementary income statement of DBB) the investment banking joint venture, Acuity Partners (Pvt) Ltd (APL) contributed Rs 105 m in the current period, 16 percent lower than Rs 125 m in the corresponding period.

The current period, however, includes a deemed disposal gain of Rs 83 m (50 percent of the total recorded by APL) arising from a transaction by its subsidiary Lanka Ventures PLC accounted in the income statement as per the previous Sri Lanka Accounting Standards.

The investment banking business was adversely impacted by the economic environment that prevailed although there were signs of uplift towards the end of the current period.

The contribution from APL's core activities was significantly lower than in the previous period. The contribution from all other subsidiaries and associate company collectively was Rs 103 m in the current period (Rs 79m in the corresponding period).

Net Interest Income as well as loans and advances recorded growth although DVB due to its lower base was constrained by the credit ceiling imposed on the banking sector by the Central Bank.