Tuesday 31 July 2018

Sri Lanka's DFCC Bank June net profit down 52-pct

ECONOMYNEXT - Profits at Sri Lanka's listed DFCC Bank was down 52 percent from a year earlier to 736.8 million rupees on higher provisioning for bad loans, interim accounts showed.

The bank reported earnings of 2.78 rupees a share in the quarter, interim accounts filed with the stock exchange showed. Earnings for the six months to end June 2018 amounted to 6.88 rupees a share with revenue growing 14 percent from a year earlier to 20.1 billion rupees.

A DFCC Bank share closed 90 cents higher on Friday to 105 rupees.

In the June quarter, the bank reported interest income growth of 22 percent from a year earlier to 9.7 billion rupees with interest expenses growing a faster 24 percent to 6.5 billion rupees, leading to an 18 percent growth in net interest income to 3.2 billion rupees.

Interest margin has improved to 3.8 percent from 3.6 percent six months earlier.

Net fee and commission income grew 33 percent to 471.7 million rupees and gains from trading financial instruments grew 8 percent to 128.3 million rupees.

Bad loan provisioning ballooned 159 percent to 777 million rupees.

Non-performing loans were 3.14 percent of outstanding loans at end June 2018, up from 2.77 percent six months earlier.

Gains from financial investment fell 94 percent to 70.6 million rupees in the June 2018 quarter on account of a gain from divesting listed shares in Commercial Bank the previous year.

Personnel costs fell 2 percent to 897.3 million rupees, depreciation charges grew 12 percent to 126.8 million rupees and other expenses grew 4 percent to 612.8 million rupees.

DFCC Bank's loan book grew 11 percent from end December 2017 to 236.7 billion rupees at end June 2018. Deposits grew 8 percent in the same period to 207.5 billion rupees.

Foreign currency deposits were 20 percent of total deposits, down from 21.6 percent six months earlier. Foreign currency loans were 11 percent of total loans, up from 9.8 percent during the same period.

The bank's Tier I capital ratio was 11.05 percent end June 2018, down from 13.09 percent end December 2017 but was higher than the minimum regulatory requirement of 7.875 percent.

Total capital adequacy was at 16.561 percent compared to the regulatory minimum 11.875 percent, improving from 16.53 percent six months earlier.

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