DFCC Bank delivers resilient, purpose-driven performance in Q1

DFCC Bank said yesterday it showcased a strong and stable performance by delivering resilient financial results in the first quarter of 2025.

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Achieves

Rs. 2.9 b Group core business PAT

Group total capital adequacy ratio at 14.656%

Group total assets up 8% to Rs. 765 b

Bank PAT of Rs. 7.8 b includes gain on disposal of 50% stake in Acuity Partners

Chairman J. Durairatnam

In a statement, DFCC said 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 Current Account Savings Account (CASA) deposits. The CASA ratio improved to 26.47% as at 31 March 2025, from 24.77% recorded as at 31 December 2024.

These achievements reflect DFCC Bank's continued focus on prudent financial management and sustainable growth.

Market lending and deposit interest rates continued their downward trend, in line with the accommodative monetary policy stance.

Lower lending rates, combined with signs of economic recovery, contributed to the accelerated growth of credit extended to the private sector by Licenced Commercial Banks (LCBS), a trend expected to continue, encouraging domestic economic activity. Simultaneously, yields on Government securities declined further, supported by stronger fiscal performance. In response, DFCC Bank promptly adjusted its lending and deposit rates, ensuring the effective transmission of monetary policy benefits to businesses and individuals.

The bank enhanced its profitability through a strategic rebalancing of its investment portfolio, placing greater emphasis on high-yield Government securities. Additionally, favourable macroeconomic conditions and dedicated recovery efforts led to a notable decrease in impairment provisions, thereby boosting profits.