DFCC Bank showcased a strong and stable performance by delivering resilient financial results in 1Q 2025, a media release from the Bank stated.
The Bank reported substantial growth in core areas such as loans and deposits, highlighted by a 5% increase in net interest income alongside an improvement in CASA deposits. The CASA ratio improved to 26.47% as at 31 March 2025, from 24.77% recorded as at December 31, 2024. These achievements reflect DFCC Bank’s continued focus on prudent financial management and sustainable growth.
The Bank sold its 50% stake (75,500,001 ordinary voting shares) in Acuity Partners (Pvt) Ltd and recorded a disposal gain, net of tax, of Rs 5,018 mn which was recorded as profit from discontinued operation.
Due to the application of equity method of accounting and recognised share of profit over the period, the disposal gain, net of tax, recorded in the Group amounted to Rs. 166 mn.
The following commentary relates to the unaudited financial statements for the period ended March 31, 2025, presented in accordance with Sri Lanka Accounting Standard 34 (LKAS 34) on Interim Financial Statements.
DFCC Bank PLC, the largest entity within the Group, recorded a profit before tax (PBT) of Rs. 3,912 mn and a profit after tax (PAT) of Rs. 2,768 mn for the period ended March 31, 2025 from its continuing operations, compared to a PBT of Rs. 4,733 mn and PAT of Rs. 3,134 mn in the previous period. The Bank’s Earnings Per Share (EPS) from continuing banking operations was Rs. 6.38, while the EPS including the gain on disposal was Rs. 17.95.
At the Group level, PBT stood at Rs. 4,055 mn, with PAT at Rs. 2,877 mn from continuing operations for the period ended 31 March 2025, compared to PBT of Rs. 4,821 mn and PAT of Rs. 3,191 mn in 2024.
The Bank’s return on equity (ROE) stood at 14.46%, while the return on assets (ROA) before tax was 2.14% for the period ended March 31, 2025, including the gain on disposal recorded under profit for the period from discontinued operation.
Throughout the period, driven by enhanced liquidity in the domestic money market and a more accommodative monetary policy by the Central Bank, the Average Weighted Prime Lending Rate (AWPR) has continued to decline, reaching 8.43% as of 31 March 2025, down from 10.69% as of March 31, 2024. This trend is expected to support the continued transmission of monetary easing.
In line with policy guidance, the Bank witnessed a reduction in yields, facilitating improved financial conditions for businesses and individuals. This contributed to a 7% decline in interest income compared to 2024.
