DFCC Bank reports solid 1H growth

■ Group core business PAT of Rs. 5.7 b ■ Group total Capital Adequacy Ratio of 15.009% ■ Group total assets up by 11% to Rs. 788 b ■ Bank's PAT of Rs. 10.5 b includes disposal gain from Acuity Partners

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DFCC Bank has sustained its growth momentum in the first half of 2025, reflecting financial resilience and effective strategic executions.

The bank recorded notable expansion in key areas, including loans and deposits, underscored by an 11% rise in net interest income, supported by a deliberate strategy to drive credit growth and optimise funding costs.

In a statement, DFCC said credit expansion remained a central focus, with the bank's loan portfolio increasing by 19% during the sixmonth period. This growth was achieved amidst a softening interest rate environment and reflects DFCC Bank's continued commitment to supporting national economic recovery through targeted lending.

While market interest rates have stabilised at lower levels, the Central Bank of Sri Lanka (CBSL) has signalled potential further reductions, continuing its accommodative monetary policy stance. Private sector credit flows remain robust, with key industries benefitting from improved liquidity. This positive momentum is expected to continue throughout the remainder of the year.

Although interest income had been under pressure in previous periods due to declining market rates, DFCC Bank recorded a modest increase in interest income during the first half of 2025. This was primarily driven by the scale of lending expansion, alongside a strengthening Current and Savings Account (CASA) base. These developments reaffirm the bank's strategic emphasis on asset growth, its prudent financial management, and its long-term orientation towards sustainable value creation.

DFCC Bank also marked a milestone with the launch of its Islamic Banking proposition-a new growth avenue aligned with the bank's vision for greater inclusion, diversity, and ethical financial access.