Steady amidst turbulence: DFCC Bank delivers sustained growth and profitability in 2024

In a demanding banking landscape, DFCC Bank demonstrated resilience and strength, achieving robust financial performance in 2024. The Bank recorded significant growth across key financial metrics, including total assets, loan portfolio, deposit base, and profitability, with profit after tax increasing by a notable 16%. This underscores DFCC Bank’s unwavering commitment to sound financial management and long-term growth.

Amidst improving liquidity conditions in the domestic money market, driven by the Central Bank’s relaxed monetary policy stance, both deposit and lending interest rates continued to decline throughout the year. This trend is expected to persist, further transmitting the benefits of policy easing. Market interest rates, having adjusted over time in response to accommodative policies, largely stabilised by the end of the year. Consequently, credit extended to the private sector by Licensed Commercial Banks (LCBs) expanded significantly from May 2024 onwards. In alignment with these developments, DFCC Bank swiftly adjusted its lending and deposit rates, ensuring the effective transmission of monetary policy benefits to businesses and individuals.

The Bank strategically enhanced profitability by optimising its investment portfolio, increasing exposure to high-yield government securities. Furthermore, positive macroeconomic trends and a strong focus on recoveries contributed to a significant reduction in impairment provisions, positively impacting the income statement.