DFCC profits increase

PROFITS: DFCC Group profit after tax grew a satisfactory 26% and return on equity improved to 15.8% on the financial year ended March 31, 2006.

The contribution from the Group's commercial banking operations was a significant factor in this performance, Chairman DFCC, Rajan Brito said in his financial review.

The significant improvement in the performance of the strategic 95% owned commercial banking subsidiary, DFCC Vardhana Bank Limited, resulted in the aggregate profit after tax of Rs. 1,188 million for the two businesses, an increase of 16%.

Asset growth with the resultant increase in core interest income, significant improvement in asset quality and a high degree of operating synergy with DVB were important achievements that characterised the year. Profit before tax and VAT on financial services of the Bank's operations at Rs. 1,855 million was 10% higher than in the previous year.

This year the bank celebrates their Golden Jubilee and the Board would be recommending the payment of a first and final dividend of 60%, the highest to be paid in the five decades of DFCC's existence.

The Board will also seek approval for a capitalisation of reserves for the issuing of one bonus share for every two held, thereby materialising further value for shareholders.