The DFCC Bank has posted a healthy balance sheet for the nine months for the New Financial Year ending December 31.
The performance reported is for nine months from April 2015 to December 2015 as against that of the previous full year. Net profit after tax as at December 31,2015 was Rs1,642 million (Group) and Rs 1,068 million (Bank) while that for FYE March 2015 was Rs 4,439 million and Rs 3,240 million respectively.
CEO Arjun Fernando said:"While 2015 was a transformative year for DFCC, the amalgamation with Vardhana has laid the foundation for the Bank to take on the competition.We are therefore confident of resuming our normal growth trajectory in 2016 and beyond."
However, there were several exceptional items in both periods which distort the comparison. FYE 31 March 2015 included substantial one-off capital gains and impairment reversals, while the period ended 31 December 2015 entailed significant non-recurrent expenses incurred during the amalgamation for items such as systems integration and data migration.
The change of the financial year meant that the Bank incurred an additional taxation charge based on the full year, even though results were for nine months. Also, substantial dividend income, which accrues in the first quarter of the calendar year, could not be included.
Meanwhile, total assets grew by 17% to LKR 247,109 million as at 31 December 2015 from LKR 210,610 million as at 31 March 2015. This included a robust credit portfolio growth of 18% to LKR 171,111 million from LKR 144,896 million. At the same time credit quality was not compromised.
The ratio of impaired loans to total loans for 31 December 2015 was 5.1% compared to 6.1% for 31 March 2015, indicating a credit quality improvement. Close monitoring drove down the Bank's ratio of impaired loans to total loans as well as its regulatory non-performing loan ratio, with the latter improving to 3.7% as at 31 December 2015 from 4.3% as at 31 March 2015.
Its balance sheet strength is demonstrated by a Group Tier 1 Capital Adequacy Ratio of 15.4% and a total Capital Adequacy Ratio of 15.3% making DFCC Bank one of the highest capitalised banks in the industry.
www.dailynews.lk
The performance reported is for nine months from April 2015 to December 2015 as against that of the previous full year. Net profit after tax as at December 31,2015 was Rs1,642 million (Group) and Rs 1,068 million (Bank) while that for FYE March 2015 was Rs 4,439 million and Rs 3,240 million respectively.
CEO Arjun Fernando said:"While 2015 was a transformative year for DFCC, the amalgamation with Vardhana has laid the foundation for the Bank to take on the competition.We are therefore confident of resuming our normal growth trajectory in 2016 and beyond."
However, there were several exceptional items in both periods which distort the comparison. FYE 31 March 2015 included substantial one-off capital gains and impairment reversals, while the period ended 31 December 2015 entailed significant non-recurrent expenses incurred during the amalgamation for items such as systems integration and data migration.
The change of the financial year meant that the Bank incurred an additional taxation charge based on the full year, even though results were for nine months. Also, substantial dividend income, which accrues in the first quarter of the calendar year, could not be included.
Meanwhile, total assets grew by 17% to LKR 247,109 million as at 31 December 2015 from LKR 210,610 million as at 31 March 2015. This included a robust credit portfolio growth of 18% to LKR 171,111 million from LKR 144,896 million. At the same time credit quality was not compromised.
The ratio of impaired loans to total loans for 31 December 2015 was 5.1% compared to 6.1% for 31 March 2015, indicating a credit quality improvement. Close monitoring drove down the Bank's ratio of impaired loans to total loans as well as its regulatory non-performing loan ratio, with the latter improving to 3.7% as at 31 December 2015 from 4.3% as at 31 March 2015.
Its balance sheet strength is demonstrated by a Group Tier 1 Capital Adequacy Ratio of 15.4% and a total Capital Adequacy Ratio of 15.3% making DFCC Bank one of the highest capitalised banks in the industry.
www.dailynews.lk
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