DFCC Bank continues to build scale and strengthen its core franchise in 1H 2026

◆ Group Core Business Profit After Tax of  LKR 4.1 Bn
◆ Group Total Capital Adequacy Ratio of 15.746%
◆ Group Net Fee and Commission Income up by 29% to LKR 4.2 Bn
◆ Group Total Assets up by 7% to LKR 921 Bn

DFCC Bank entered the second half of 2026 with a larger and increasingly diversified franchise, following sustained growth across lending, deposits, fee income, and total assets during the first six months of the year. Loan and deposit portfolios grew by 9% and 12%, respectively, compared to 31 December 2025, while total assets increased by 7% to LKR 919 Bn and total liabilities grew by 8% to LKR 811 Bn. Net fee and commission income rose by 29%, while Net Interest Income increased by 6% to LKR 16 Bn, demonstrating continued momentum across the Bank’s core income streams.

In response to inflationary risks, the Central Bank of Sri Lanka increased the Overnight Policy Rate (OPR) by 100 basis points to 8.75% in May 2026. Deposit and lending rates were revised in line with prevailing market conditions, while prudent liquidity management, funding optimisation initiatives, and effective control of funding costs supported a 6% increase in Net Interest Income to LKR 16 Bn.

The Bank recorded a Profit After Tax of LKR 3.9 Bn from core operations. Impairment provisioning was reinforced through refinements to credit risk models and specific management overlays, resulting in an LKR 1.1 Bn increase in impairment charges compared to the same period last year. Notably, the net stage 3 impaired loan ratio improved to 3.61% from 4.55% as at 31 December 2025, reinforcing the Bank’s focus on asset quality and sustainable growth.

Beyond financial performance, 1H 2026 also brought further validation of DFCC Bank’s customer, sustainability, and community agenda. DFCC Bank PLC, the largest entity within the Group, reported a Profit Before Tax (PBT) of LKR 5,480 Mn and a Profit After Tax (PAT) of LKR 3,904 Mn from core operations for the period ended 30 June 2026, compared to a PBT of LKR 7,910 Mn and a PAT of LKR 5,555 Mn in the corresponding period. At Group level, for the period ended 30 June 2026, PBT was LKR 5,801 Mn and PAT was LKR 4,139 Mn, compared to LKR 8,172 Mn and LKR 5,747 Mn, respectively, in 2025.

The Bank’s Earnings Per Share (EPS) from core banking operations was LKR 8.76 for the period ended 30 June 2026. The Bank’s Return on Assets (ROA) before tax was 0.99%, while Return on Equity (ROE) after tax stood at 6.19% for the period ended 30 June 2026.

Source: Daily News