DFCC Bank achieved robust financial performance in 2024. The Bank recorded significant growth across key financial metrics, including total assets, loan portfolio, deposit base, and profitability, with profit after tax increasing by a notable 16%, a media release from the company stated.
Amid improving liquidity conditions in the domestic money market, driven by the Central Bank’s relaxed monetary policy stance, both deposit and lending interest rates continued to decline throughout the year. This trend is expected to persist, further transmitting the benefits of policy easing.
Market interest rates, having adjusted over time in response to accommodative policies, largely stabilised by the end of the year. Consequently, credit extended to the private sector by Licensed Commercial Banks (LCBs) expanded significantly from May 2024. In alignment with these developments, DFCC Bank swiftly adjusted its lending and deposit rates, ensuring the effective transmission of monetary policy benefits to businesses and individuals. Fitch Ratings upgraded DFCC Bank PLC’s National Long-Term Rating to A(lka) from A- (lka).
The Bank’s profit after tax increased by 16% to Rs. 8,353 mn, while earnings per share (EPS) rose by 12% to Rs. 19.40 in 2024. DFCC Bank PLC, the largest entity within the Group, recorded a Profit Before Tax (PBT) of Rs. 13,498 mn and a Profit After Tax (PAT) of Rs. 8,353 mn for the year ended December 31, 2024, compared to a PBT of Rs. 10,960 mn and a PAT of Rs. 7,220 mn in the previous year.
At the Group level, PBT stood at Rs. 13,820 mn, with a PAT of Rs. 9,932 mn, including Rs. 1,378 mn from discontinued operations, as compared to PBT of Rs. 11,369 mn and PAT of Rs. 8,659 mn in 2023. The Bank’s Return on Equity (ROE) stood at 10.99% for the year, compared to 12.19% in 2023, while Return on Assets (ROA) before tax improved to 2.01%, up from 1.82% the previous year.
The Bank’s total tax expense, which includes Value Added Tax (VAT), Social Security Contribution Levy (SSCL), and Income Tax, amounted to Rs. 9,562 mn for the year ended December 31, 2024. As a result, the Bank’s tax expense as a percentage of operating profit for the year stood at 53.37%.
