DFCC Vardhana Bank PLC, which was a subsidiary of the Group was amalgamated with DFCC Bank PLC on 1 October 2015 with DFCC Bank PLC as the surviving entity. Subsequent to the amalgamation, the financial year of the Bank was changed to a calendar year commencing the year 2015.
The following combined income statement for the comparative period (1 January 2015 to 31 December 2015) has been prepared and presented to compare the business results as if both the amalgamation and the change of financial year
took place prior to 1 January 2015.
The financial result for the 12 months ended 31 December 2016 are as reported in the income statement.
This information has been presented for comparability purpose only and are unaudited.
| 12 months ended 31 December 2016 LKR 000 | 12 months ended 31 December 2015 LKR 000 | Change % | |
| Income | 26,753,895 | 19,906,706 | 34 |
| Interest income | 24,194,158 | 17,257,604 | 40 |
| Interest expense | 15,293,022 | 10,146,326 | 51 |
| Net interest income | 8,901,136 | 7,111,278 | 25 |
| Fee and commission income | 1,309,049 | 1,155,211 | 13 |
| Fee and commission expenses | – | 9,914 | (100) |
| Net fee and commission income | 1,309,049 | 1,145,297 | 14 |
| Net gain from trading | 340,456 | 217,822 | 56 |
| Net (loss)/gain from financial instruments at fair value through profit or loss | (179,727) | 181,766 | (199) |
| Net gain from financial investments | 1,165,389 | 1,155,215 | 1 |
| Other operating (loss)/income – net | (75,430) | (60,912) | (24) |
| Total operating income | 11,460,873 | 9,750,466 | 18 |
| Impairment for loans and other losses | 937,267 | 1,007,253 | (7) |
| Net operating income | 10,523,606 | 8,743,213 | 20 |
| Operating expenses | |||
| Personnel expenses | 2,809,742 | 2,879,892 | (2) |
| Other expenses | 2,314,224 | 2,296,493 | 1 |
| Operating profit before value added tax and nation building tax on financial services |
5,399,640 | 3,566,828 | 51 |
| Value added tax and nation building tax on financial services | 986,110 | 701,191 | 41 |
| Operating profit after value added tax and nation building tax on financial services |
4,413,530 | 2,865,637 | 54 |
| Share of profits of associate and joint venture | – | – | |
| Profit before income tax | 4,413,530 | 2,865,637 | 54 |
| Income tax expense | 1,124,807 | 812,192 | 38 |
| Profit for the year | 3,288,723 | 2,053,445 | 60 |
