DFCC Bank delivered a strong financial performance for the period ended 31 March 2026, underscoring the robustness of its strategy, disciplined execution, and the resilience of its balance sheet. Loan and deposit portfolios recorded sustained growth of 5% and 7%, respectively, compared to 31 December 2025, reflecting calibrated credit expansion and funding optimisation. As a result, total assets increased by 3% to LKR 884 Bn and total liabilities grew by 4% to LKR 777 Bn.
Prudent liquidity management and funding optimisation, together with effective control of funding costs in a moderating interest rate environment, supported the Bank’s performance and strengthened long-term value creation for shareholders and customers, resulting in a 12% increase in Net Interest Income to LKR 8 Bn.
Profit After Tax from core business amounted to LKR 1.7 Bn, reflecting the Bank’s prudent and forward-looking approach to risk management amid evolving geopolitical and macroeconomic conditions. During the period, the Bank strengthened impairment provisioning through updated model calibrations and management overlays, while adopting selective lending strategies and disciplined cost management measures to support sustainable growth and strengthen resilience against unforeseen external shocks. Consequently, impairment charges increased by LKR 1.8 Bn compared to the corresponding period.
Advancing its strategic priorities to strengthen its retail and wealth franchise, broaden its customer base, and accelerate scale across key growth segments, DFCC Bank achieved a significant milestone with the signing of a binding Business Sale Agreement with Standard Chartered Bank PLC to acquire its Wealth and Retail Banking operations in Sri Lanka. The Bank has now transitioned to the next phase of the transaction, with integration and migration activities currently underway as the Bank progresses towards completion of the transition.
The following commentary relates to the unaudited financial statements for the period ended 31 March 2026, presented in accordance with Sri Lanka Accounting Standard 34 (LKAS 34) on Interim Financial Statements.
