DFCC capitalises on synergies and closes strong in Q1

DFCC Bank in its latest financials released yesterday, presented good progress on all fronts. As the Bank changed its financial year-end from 31 March to 31 December in 2015, the performance reported for the period 1 January 2016 to 31 March 2016 is compared with the results of the period 1 January 2015 to 31 March 2015 as opposed to the first quarter of the last financial period (1 April 2015 to 30 June 2015).

DFCC Group recorded a growth in consolidated profit before tax of 26.8% to Rs. 1,085 million from Rs. 856 million in the previous period. Meanwhile, profit after tax grew by 14.8% to Rs. 970 million from Rs. 845 million. Total assets of the group stood at Rs. 256,140 million as at 31 March, 2016 compared to Rs. 247,109 million as at 31 December, 2015.

By far, the largest contribution to profits and assets was from DFCC Group’s Banking Business, which is its core business. Accordingly, profit after tax of the Banking Business grew by 17.5% to Rs. 926 million from Rs. 788 million in the comparable (for DFCC Bank and DFCC Vardhana Bank) period. Net interest income (NII) increased by 3.6 % to Rs. 1,788 million from Rs. 1,726 million and net fee and commission income increased by 8.4% to Rs. 296 million from Rs. 273 million.

Commenting on the results, Chief Executive Arjun Fernando said: “I am happy to say that DFCC Bank delivered a good performance in many areas compared to 2015. Even more importantly we have made good progress in our integration efforts following our amalgamation with DFCC Vardhana Bank last year. A well-defined integration roadmap was put in place to capitalise on the strengths and ensure the best combinations, and the synergies we have achieved through this amalgamation have been significant. Overall, we have been further strengthened and it has created value for all our stakeholders. Our goal is to continue the progress, with further operational and service benefits to come in the near future including rapidly growing our digital reach and our footprint across the country. DFCC Bank is well positioned to keep growing.”