DFCC Vardhana Bank PLC (DVB) recorded an impressive profit after tax of Rs.336.30 million for the first quarter of the financial year of 2015,a 506.46% increase over the same period of the previous year. The bankâ€™s net interest income was recorded at Rs. 977 million, a 38.27% growth over the first quarter of the previous year. The bankâ€™s total operating income was Rs. 1.38 billion, a 43.54% increase over the first quarter of 2014.
These excellent performances are a result of the pro-activeness of DVBâ€™s pricing of its asset and liability products in keeping with market conditions. Additionally, the strong growth that DVB recorded in its loan book in the latter half of 2014, has contributed significantly to boosting its profits in Q1 of 2015. The bankâ€™s success is also attributed to the effective management of operating costs which helped increase the bankâ€™s operating efficiencies, additionally its growth in total assets were recorded at Rs.107.88 billion.
Due to the bankâ€™s high performance and increased stability, the earnings per share for the first quarter of 2015 improved to Rs. 1.18, from Rs 0.20 reported for the same period of the previous year. Additionally return on equity increased to 15.21% from 13.38% while the return on assets for the period under review was 1.30%, indicating a strong financial performance in Q1. The bank managed to maintain its capital adequacy ratios, Tier I at 11.41% and Tier II at 12.22% which is well above the minimum regulatory requirements of 5% and 10% respectively.
Commenting on DVBâ€™s performance, Lakshman Silva, CEO, DFCC Vardhana Bank PLC said, â€œOur growth in the first quarter of the financial year ending in 2015 has helped us secure our position as the fastest growing commercial bank in the country. By offering competitively priced products and services, and by providing our customers with added value through exceptional standards of customer service, we have been able to achieve consistent growth and significant results.â€
DVBâ€™s strong performance in Q1 is also a result of the many initiatives undertaken by the management in the recent past. The impressive growth in the areas of Home and Personal Loans and Leasing under Personal Financial Services (PFS) has also contributed to the overall results. The bank has succeeded in widening its PFS customer base by focusing on employees and professional segments.
The DVB managementâ€™s timely decision to enter the remittance business is proving to be another area that is yielding results for the bank. The Lanka Money Transfer direct account credit mechanism promoted by DVB is fast becoming the preferred way for expatriates to remit money to their loved ones back home.
Trade related income is the other consistent area of growth. DVBâ€™s continuous efforts to provide corporate clients with a reliable and speedy service has been instrumental in the bank making inroads into business areas that were previously dominated by more established players in the market.
DFCC Vardhana Bank, is known for its energy and professionalism and is one of the youngest yet most dynamic commercial banks in the country. DFCC Vardhana Bank celebrates 12 years of excellence in the financial services industry this year. The bank remains committed to leading the economy with financial inclusivity while spreading warmth, fellowship and stability in the local community.
DFCC Vardhana Bank has 137 branches and extension offices; and includes 59 units across the Sri Lanka Post network. DVBâ€™s customers at all branches have access to a full range of commercial and personal banking services, including Current Accounts, Savings Accounts, Fixed Deposits, Foreign Currency Accounts and trade related finances. DVB is part of the DFCC Group, a pioneer development bank in Sri Lanka, which was recently made a licensed specialized bank by CBSL.