DFCC recorded favourable growth in the first half of FY2016 ending June 30, 2016, with a consolidated profit after tax of Rs 1,721 million which is 16.1% over the Rs 1,482 million recorded in the comparable period ended June 30, 2015. The total assets of the Group stood at Rs 263,234 million as at June 30, 2016 compared to Rs 247,109 million on December 31, 2015.
During the period under consideration, net interest income increased by 9.4% to Rs 3,831 million from Rs 3,503 million in the comparable period, while net fee and commission income grew by 14.7% to Rs 600 million from Rs 523 million. Other income was derived largely from dividends derived from the investment in Commercial Bank of Ceylon PLC, supplemented by dividend from other equity securities classified as available-for-sale. Hence, Dividend income recorded was Rs 569 million compared to Rs 558 million in the comparable period.
The impairment allowance during the current period was Rs 644 million compared to Rs 531 million in the comparable period. The increase in the impairment charge during the period was as a result of provisions made on account of two large exposures based on available objective evidence. However, recovery processes are being pursued to minimize any actual losses that may arise from such exposures. The ratio of impaired loans to total loans as at June 30, 2016 was 5.5% compared to 5.1% as at December 31, 2015. The cumulative allowance for impairment for loans and advances was maintained at a healthy level of 70% of impaired loans and advances as at June 30, 2016.
Operating expenses were Rs 2,178 million in the current period, a decrease of 7% over Rs 2,344 million in the comparable period. Stringent cost control and efficiency measures continue to remain a priority in the bank’s operations.
During the period under consideration, net interest income increased by 9.4% to Rs 3,831 million from Rs 3,503 million in the comparable period, while net fee and commission income grew by 14.7% to Rs 600 million from Rs 523 million. Other income was derived largely from dividends derived from the investment in Commercial Bank of Ceylon PLC, supplemented by dividend from other equity securities classified as available-for-sale. Hence, Dividend income recorded was Rs 569 million compared to Rs 558 million in the comparable period.
The impairment allowance during the current period was Rs 644 million compared to Rs 531 million in the comparable period. The increase in the impairment charge during the period was as a result of provisions made on account of two large exposures based on available objective evidence. However, recovery processes are being pursued to minimize any actual losses that may arise from such exposures. The ratio of impaired loans to total loans as at June 30, 2016 was 5.5% compared to 5.1% as at December 31, 2015. The cumulative allowance for impairment for loans and advances was maintained at a healthy level of 70% of impaired loans and advances as at June 30, 2016.
Operating expenses were Rs 2,178 million in the current period, a decrease of 7% over Rs 2,344 million in the comparable period. Stringent cost control and efficiency measures continue to remain a priority in the bank’s operations.
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