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DFCC reports 62% increase in profits

02 Nov 2021

By Shenal Fernando DFCC Bank has recorded a profit of Rs. 3.1 billion during the first half of FY2021, up 75% YoY from Rs. 1.8 billion in the equivalent period in FY2020, with basic earnings per ordinary share surging to Rs. 9.74 from Rs. 5.74. Similarly, the DFCC Group, comprising DFCC Bank PLC (DFCC); its subsidiaries Lanka Industrial Estates Ltd. (LINDEL), DFCC Consulting (Pvt.) Ltd. (DCPL), and Synapsys Ltd. (SL); the joint venture company Acuity Partners (Pvt.) Ltd. (APL); and associate company National Asset Management Ltd. (NAMAL), observed a 64% increase in profit during 1H FY2021 to Rs. 3.4 billion from Rs. 2.1 billion in 1H FY 2020, with basic earnings per ordinary share increasing to Rs. 10.53 from Rs 6.92. The significant increase in profit recorded by DFCC Bank, despite interest income increasing by only a negligible 2%, was largely due to the increase in income from fees and commissions, and also due to the increase in dividend income and gain on the sale of fixed income securities during the period.  DFCC Bank had, despite the challenges caused by Covid-19, strived to increase non-funded businesses and assist priority sectors within the economy to continue functioning without any interruptions to their business activities. The success of such efforts is reflected by the fact that the net income from fees and commissions increased by 37% to Rs. 1.9 billion in 1H FY2021 from Rs. 1.4 billion in 1H FY2020. DFCC has continued its growth strategy of increasing its deposit and loan portfolio, despite the challenging business environment created by the Covid-19 pandemic. Accordingly, the loan portfolio has, as of 30 September, grown by Rs. 54.1 billion (18% YoY) to Rs. 356.0 billion from Rs. 301.9 billion as of 31 December 2020. 


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