DFCC Vardhana Bank profits up 28%December 7, 2012, 8:10 pm
DFCC Vardhana Bank PLC’s (DVB) profits for the nine-months to September this year rose by 27.86 percent from the year earlier with a total figure of Rs. 401.73 million, interim accounts showed. Growth was also helped by higher business volumes and provision reversals. The bank reported earnings of Rs. 1.59 per share for the quarter.
"Turnover for the nine-months ending in September was Rs. 5.18 billion which is a positive growth of 73.51 percent over the comparison period last year," said Lakshman Silva, CEO DFCC Vardhana Bank.
Banks were restricted to a 18.0 percent regulatory ceiling on credit growth set by the Central Bank of Sri Lanka for 2012. The credit ceiling was brought in by the Central Bank to curb the credit bubble and avert the balance of payment crisis. During the year, DFCC Vardhana Bank secured a foreign credit line, lifting the credit ceiling up to 23.0 percent, allowing the bank to lend up to Rs. 1.0 billion till the end of the year.
"Despite these challenges, the bank remains focused on a strong growth trajectory and looks forward to contributing to the economic growth of Sri Lanka," Mr Silva further added.
Interest income rose 80.71 percent to Rs. 4.64 billion in the nine months to September with interest expenses rising at a faster 128.16 percent to Rs. 2.99 billion and net interest income growing at a slower 31.48 percent to Rs. 1.66 billion.Unspecified other income rose 36.90 percent to Rs. 480.87 million.Performing loans grew at 15.14 percent to Rs. 36.77 billion in the September three quarters from December 2011.
Deposits grew at 31.48 percent to Rs. 44.16 billion by end September 2012 from December 2011. Of this, savings deposits have grown by 22.9 percent and time and savings deposits has risen by 36.14 percent, favourably for the bank’s liability portfolio. Total assets have also grown by 21.66 percent to Rs. 55.89 billion.
Rated ‘AA-(lka)’ with a ‘stable’ outlook by Fitch Ratings Lanka, DFCC Vardhana Bank is majority owned by DFCC Bank PLC, which is a licensed specialised bank and Sri Lanka’s only development finance institution.
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