DFCC Bank saw a 16 percent rise in net profits for the nine months ending Dec. 2003, largely aided by falling interest rates and revenues from its associated companies.
The development financial institution said group post-tax profits topped Rs. 933 mn from Rs. 801 mn reported in 2002.rn
rnProfits from the banks own operations grew 69 percent to Rs. 650 mn, while associated company rose 20 percent to Rs. 183 mn and subsidiaries chipped in with a 11 percent growth of Rs. 100 mn.rn
rnThe groups other income rose 22 percent to Rs. 477 mn, which includes dividend income, profit on sale of shares, gains on sale of debt securities and fees.rn
rnOperating profit before provisions was up 36 percent to Rs. 1.276 bn, over Rs. 937 mn in 2002.rn
rnIn a scenario of falling interest rates and shrinking margins, DFCC adopted a strategy to reduce funding costs by developing a sustainable, domestic time deposit customer base. This helped reduce the Banks dependency on higher cost domestic institutional borrowin