DFCC Bank delivers resilient, purpose-driven performance

DFCC Bank reported strong financial results in first quarter of 2025, with notable growth in loans and deposits.

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Net interest income increased by five percent, and the CASA ratio improved to 26.47 percent from 24.77 percent in the previous quarter, reflecting the bank's focus on prudent financial management. As market interest rates fell due to an accommodative monetary policy, credit growth in the private sector rose, benefiting domestic economic activity.

The bank adjusted lending and deposit rates to support businesses and individuals while enhancing profitability by shifting its investment portfolio towards high-yield government securities, leading to lower impairment provisions and increased profits. The Bank sold its 50 percent stake (75,500,001 shares) in Acuity Partners, recording a net disposal gain of 5,018 million rupees as profit from discontinued operations. After applying equity method accounting, the Group's net disposal gain was 166 million rupees. This commentary pertains to the unaudited financial statements for the period ended 31 March 2025, prepared in accordance with Sri Lanka Accounting Standard 34 (LKAS 34).