DFCC Group has recorded a consolidated profit after tax of Rs 1.14 billion for the three months ended 30 June 2014 compared with Rs. 612m in the corresponding period of the previous year, recent financials showed. Apart from the Banking Business which contributed Rs 1,093m to profit after tax the investment banking joint venture, Acuity Partners (Pvt) Limited (APL) contributed Rs. 3m in the current period (LKR 10m in the comparable period). The contribution from all other subsidiaries and associate company collectively was Rs. 48m in the current period (Rs 24m in the comparable period), DFCC Chief Executive Officer Arjun Fernando told shareholders.
The Banking Business of the DFCC Group is undertaken by DFCC Bank (DFCC), a licensed specialized bank and 99% owned subsidiary DFCC Vardhana Bank (DVB), a licensed commercial bank. 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).
During the quarter, Net Interest Income (NII) of DBB for the period decreased by 20% from Rs 2,120m to Rs 1,693m due to the drop in lending rates in tandem with a drop in benchmark interest rates.
“Credit growth exceeded industry average and was an increase of 15% year on year. However, the major part of the asset build up was based on disbursements towards the latter part of the quarter,” Fernando said.
The Banking Business of the DFCC Group is undertaken by DFCC Bank (DFCC), a licensed specialized bank and 99% owned subsidiary DFCC Vardhana Bank (DVB), a licensed commercial bank. 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).
During the quarter, Net Interest Income (NII) of DBB for the period decreased by 20% from Rs 2,120m to Rs 1,693m due to the drop in lending rates in tandem with a drop in benchmark interest rates.
“Credit growth exceeded industry average and was an increase of 15% year on year. However, the major part of the asset build up was based on disbursements towards the latter part of the quarter,” Fernando said.
The DBB recorded Rs. 1,541m as operating profit before taxes, an increase of 61% over the comparable period. Profit after tax (both VAT on financial services and income tax) was Rs 1,093m, an increase of 89% over Rs 577m in the comparable period.
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