DFCC Bank profits increase

The non-audited DFCC Bank group profits after tax for the six months ended September 30 2005 (current period) was Rs. 673 million, an increase of 21 pc over Rs. 555 million in the previous comparable period (April to September 2004). This is a considerable improvement on the performance for the first quarter, which recorded a 12 pc decline compared with the first quarter of the previous financial year.

The results have been presented in the new format prescribed by the Central Bank of Sri Lanka said General Manager/Chief Executive Officer Nihal Fonseka.

The capital gains on sale of shares held as investment securities included in the current period was Rs102 million compared to Rs. 150 million in the comparable period. The lower capital gains in the current period caused a reduction in the increase of the Profit before Tax (PBT) from DFCC Bank's operations. However, net interest income from lending operations recorded a fair growth of 14 pc. Taking DFCC Bank and DVB together, net interest income increased by 20% to Rs. 1,005 million from Rs. 804 million in the previous comparable period

The aggregate market value of quoted shares held as investment securities exceeded the aggregate cost by Rs. 281 million on September 30 2005 with all sectors in which DFCC Bank has invested reporting gains. In the previous comparable period the aggregate market value of quoted shares exceeded the cost by Rs.108 million.

The loans and leases of DFCC Bank approved but undisbursed was Rs.7, 332 million on 30 September 2005. The gross credit approvals including leases of Rs. 8,835 million in the current period compared to Rs. 5,596 million in the comparable previous period.

DVB increased its share capital from Rs.384 million to Rs.884 million on 23 September 2005 by issue of new ordinary shares at par. Since some of the minority shareholders did not subscribe to the new share issue DFCC Bank increased its ownership in DVB from 94.5 pc to 95.8 pc. The total investment by DFCC Bank was Rs. 479 million.

DFCC Bank provided Rs. 5 million towards the capital of a newly incorporated DFCC Consulting (Pvt) Limited, a fully owned subsidiary. This company will provide consultancy services. The shares were allotted on 29 September.