DFCC Vardhana Bank PLC (DVB) last week reported a profit after tax of Rs. 635.5 million, for the first half year ended 30 June 2015 which is a growth of 85% over the corresponding period of 2014. In line with this, the basic earnings per share (EPS) too reached Rs. 2.24 during the current period compared to Rs 1.21 of the corresponding period of the previous year.
Net interest income recorded a growth of 28% over the previous period due to the reduction in interest expenses compared to the corresponding period in the previous year. A low interest rate operating environment brought about many challenges on asset re-pricing which was partly offset by reducing the cost of liabilities by re-pricing shorter tenor deposits and reducing the high cost deposits.
Net fees and commission income recorded a growth of 21% for the period under review driven mainly by fee income from trade facilities and remittance business. This was as a result of various initiatives taken by the bank to promote the fee-based income as the margins were shrinking due to the low interest rates in the market.
Commenting on the bank’s performance, Lakshman Silva, CEO of DFCC Vardhana Bank stated, “The impressive performance recorded by DVB is a result of the management’s decision to take proactive measures to address critical challenges based during the period & review. Credit must go to the dynamism of the staff for rallying around the call to aggressively look in to fee income increase, operational efficiencywhilstcontinuing their focus on the liability & asset growth.