DFCC maintains profitability under volatile market conditions



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Core business of DFCC Bank posted a profit before tax of LKR 1,585 million and profit after tax of LKR 1,124 million for the quarter ended March 31, 2019 compared to profit before tax of LKR 1,243 million and profit after tax of LKR 1,034 million in the comparative period. After accounting for fair value loss on Commercial Bank of Ceylon PLC shares transferred to the trading portfolio, the Bank reported a profit before tax of LKR 1,001 million and profit after tax of LKR 541 million in comparison to profit before tax of LKR 1,277 million and a profit after tax of LKR 1,068 milion in the comparative period.


The Bank recorded total operating income from core business amounting to LKR 3,981 million for the quarter ended 31 March 2019 compared to LKR 3,713 in the comparative period in 2018 which is an increase of 7%. After accounting for the impact of high fair value loss in the investment of Commercial Bank of Ceylon PLC, the operating income reflects a decline of 14%. The interest margin has remained at 3.5% as reported for the year ended 31 December 2018. Further, a growth of 8% was recorded in fees and commission income to LKR 467 million in Q1 2019 from LKR 434 million in Q1 2018. This is the outcome of a focus on non-funded business.


DFCC Bank sustained its aggressive branch expansion, launching 7 new branches which include the Bank’s first Super Grade Branch, at Lake House premises in the period April 2018 to March 2019. Operating expenses increased from LKR 1,579 million to LKR 1,750 million (11%) compared to the corresponding period in the previous year. The Bank’s Super Grade Branch at Lake House premises has taken customer convenience a step further by offering a totally new experience with DFCC MySpace, a Self-Banking area where customers can conduct all their transactions with ease and convenience in a fast and secure manner 24/7, 365 days of the year.


 
 
 
 
 
 
 
 
 
 
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