DFCC Bank Resilient Amidst Economic Headwinds

DFCC Bank reported a Profit Before Tax of 10,960 million rupees and a Profit After Tax of 7,220 million rupees for the year ended December 31, 2023.

The Group recorded a PBT of 12,508 million rupees and PAT of 8,659 million rupees for December 31, 2023. All the member entities of the Group made positive contributions to this performance. The Bank's Return on Equity improved to 12.19 per cent during the year ending December 31, 2023, from 5.04 per cent recorded for December 31, 2022. The Bank's Return on Assets before tax for the year ended December 31, 2023, is 1.82 per cent.

The Bank's total tax expense, which includes value-added tax and Social Security Contribution Levy financial services and income tax, is 6,927 million rupees for the year ended December 31, 2023. As a result, the Bank's tax expense as a percentage of operating profit for the year stood at 48.96 per cent.

Operating expenses for the year ended December 31, 2023 increased to 11,720 million rupees primarily due to the increase in inflation. However, the Bank has taken numerous cost control measures within the Bank, resulting in operating expenses being curtailed and managed at these levels. The Bank achieved a healthy 29.41 per cent cost/ income ratio in 2023.