DFCC Group banking biz posts Rs. 2 b after tax profit in FY 2011

DFCC Bank has posted an after tax profit of Rs. 2 billion in the financial year ended 31 March 2011 up from Rs. 1.73 billion in the previous year.

Pre-tax profit crossed the Rs. 3 billion mark in FY 2011 from Rs. 2.75 billion in 2009/10 financial year.

Net profit attributable to equity holders amounted to Rs. 1.98 billion, as against Rs. 1.72 billion in FY2010.

When exceptional profit on part sale of Commercial Bank stake and Lanka Ventures Ltd. are included, DFCC Bank’s pos-tax profit was Rs. 3 billion, as against Rs. 227 million a year earlier whilst adjusted profit after tax attributable to equity holders of the parent DFCC Bank was Rs. 4.99 billion, up from Rs. 1.95 billion in 2009/10 financial year.

In a supplement to interim accounts, DFCC Bank gave separate numbers to facilitate comparison on ‘like for like’ basis by adjusting for distortions arising from the disposal of associate/subsidiary transactions in the current and previous financial years.

As per consolidated income statement on DFCC Bank and DVCC Vardhana Bank’s banking business, interest income in 2010/11 was Rs. 9.5 billion, down from Rs. 11.57 billion a year earlier.

Net interest income rose from Rs. 4.74 billion to Rs. 5.03 billion whilst operating income was Rs. 6.75 billion, as against Rs. 6.26 billion. Operating profit before provisions was Rs. 4.2 billion and before value added tax was Rs. 3.74 billion, in comparison to Rs. 4.12 billion and Rs. 3.53 billion respectively in FY 2010.

Group gross income in 2010/11 was Rs. 15.69 billion, up from Rs. 12.9 billion whilst net interest income amounted to Rs. 5.26 billion, up from Rs. 5.19 billion a year earlier.

Non-interest income including other income from the sale of part stake in Commercial Bank amounted to Rs. 6.03 billion, up from Rs. 1.14 billion in FY2010.

Consolidated operating profit before VAT was Rs. 8.13 billion, up from Rs. 3.5 billion and profit before tax amounted to Rs. 6.05 billion as against Rs. 2.6 billion in FY2010. After tax profit doubled to Rs. 5.17 billion from Rs. 2.68 billion in FY2010. Profit attributable to equity holders was Rs. 5.09 billion as against Rs. 2.57 billion.

DFCC’s Group assets as at 31 March, 2011 was Rs. 90.3 billion, marginally down from Rs. 90.5 billion a year earlier. Bank assets rose from Rs. 56.4 billion to Rs. 59.9 billion.

Total net loans and advances at Bank level was Rs. 39.17 billion, up from Rs. 35.7 billion as at 31 March, 2010 and at Group level it grew from Rs. 49.6 billion to Rs. 57.2 billion. Total performing loans and advances amounted to Rs. 38.7 billion and Rs. 56.3 billion at Bank and Group levels up from Rs. 33.97 billion and Rs. 46.95 billion respectively as at end FY2010.

Nonperforming loans and advances at Bank level declined to Rs. 3.8 billion, from Rs. 5.4 billion, whilst at Group level it dipped from Rs. 7.6 billion to Rs. 6.1 billion,.

Group deposits remained static almost at Rs. 25 billion level whilst borrowings declined to Rs. 35.3 billion from Rs. 40 billion whilst that of the Bank declined from Rs. 33.5 billion to Rs. 32.2 billion. Total liabilities for the Group were Rs. 66.2 billion, down from Rs. 69.1 billion and Rs. 39.7 billion for the Bank, down from Rs. 40.6 billion.

DFCC Bank Directors have recommended the payment of a final dividend of Rs3 per share for the year ended 31 March 2011, which require the approval of the shareholders at the Annual General Meeting to be held on 30 June 2011.

In notes to post-balance sheet events DFCC said pursuant to the approval by Central Bank permitting DFCC Bank to acquire up to 100% of the shares in the subsidiary, DFCC Vardhana Bank, DFCC increased its shareholding in DVBL to 98.94% from 95.6% on 31 March 2011.