Slow Quarter

Aug 03, 2009 (LBO) – Sri Lanka’s DFCC Bank group said June 2009 quarter net profit fell 6.38 percent to 507.1 million rupees from a year ago owing to lower fee-based income, foreign exchange losses and weak returns from strategic investments. DFCC Group’s provisions for bad and doubtful debts had gone up 8.25 percent to 177.5 million rupees, its quarterly earnings showed.

The bank said in a stock exchange filing that non-interest income halved to 181.6 million rupees owing to foreign exchange losses and a drop in fee-based income.

DFCC Group made a foreign exchange loss of 43.8 million rupees in the June quarter of 2009. In the corresponding period of last year, the bank made a foreign exchange profit of 24.5 million rupees.

Its other operating income had also shrunk 34.2 percent to 225.2 million rupees, its quarterly statement said.

DFCC’s share of profit after tax of Commercial Bank of Ceylon was 15 percent lower in the June 2009 quarter at 213 million rupees, compared with 252 million rupees in the comparable period, DFCC chief executive Nihal Fonseka said in statement.

Fonseka said Commercial Bank’s profits had suffered due to higher value added tax on financial services and financing costs on a volun