Colombo, 13 August 2026 – DFCC Bank PLC, a leading financial institution in Sri Lanka, has announced robust interim financial results for the quarter and six months ended 30th June 2026, demonstrating sustained growth across its core operations despite a challenging external environment. The Bank further solidified its market position through the strategic acquisition of Standard Chartered Bank PLC’s Wealth and Retail Banking Business in Sri Lanka, effective August 1, 2026.
Strong Performance Across Key Financial Metrics
The Group’s performance in the first half of 2026 underscores its resilience and strategic focus on expanding its core franchise. Key highlights from the interim financial statements include:
- **Group Core Business Profit After Tax (PAT)** reached LKR 4.1 Billion for the six months ended 30th June 2026.
- **Group Total Capital Adequacy Ratio** stood strong at 15.746%, comfortably exceeding regulatory requirements.
- **Net Fee and Commission Income** recorded a significant 29% increase, reaching LKR 4.2 Billion, driven by strategic focus on trade-related commissions and card-based services.
- **Group Total Assets** grew by a healthy 7% to LKR 921 Billion, reflecting successful strategic growth initiatives.
- **Loan and Deposit portfolios** expanded by 9% and 12% respectively compared to 31st December 2025, demonstrating strong client acquisition and retention.
- **Net Interest Income** rose by 6% to LKR 16 Billion, buoyed by disciplined margin management and effective balance sheet optimisation.
- The **Net Stage 3 Impaired Loan Ratio** showed a marked improvement, declining to 3.61% from 4.55% as at 31st December 2025, highlighting the Bank’s commitment to asset quality.
Navigating a Demanding Macroeconomic Landscape
DFCC Bank’s strong first-half performance occurred amidst a complex global and domestic economic backdrop. Heightened geopolitical tensions in the Middle East led to elevated commodity prices, particularly energy, and increased global market uncertainty. Domestically, the Central Bank of Sri Lanka raised the Overnight Policy Rate (OPR) by 100 basis points to 8.75% in May 2026 to address inflationary risks, impacting credit growth and demand pressures.
Despite these headwinds, the Bank strategically managed its funding profile and margins, adjusting deposit and lending rates in line with market conditions. Prudent liquidity management and funding optimisation initiatives contributed to the increase in Net Interest Income and preserved balance sheet resilience.
Landmark Standard Chartered Acquisition Boosts Retail and Wealth Capabilities
A pivotal strategic development for DFCC Bank was the successful completion of the acquisition of Standard Chartered Bank PLC’s Wealth and Retail Banking Business in Sri Lanka. First announced to the Colombo Stock Exchange in November 2025, the transaction was finalised with the integration of the acquired portfolio into DFCC Bank effective 1st August 2026.
This landmark acquisition brings approximately 50,000 new customer accounts and around 260 employees to DFCC Bank, expanding its network to 139 locations nationwide. This move materially strengthens the Bank’s retail and wealth management capabilities, significantly enhancing its reach and accessibility across the country. The transaction is set to provide a broader platform for sustainable expansion, deeper customer relationships, and enhanced service delivery, creating long-term value for all stakeholders.
Commitment to Sustainability and Community Recognised
Beyond its financial performance, DFCC Bank continued to make significant strides in its sustainability and community initiatives during the first half of 2026. The Bank’s pioneering Blue Bond achieved supplementary listings on the Luxembourg Stock Exchange’s Luxembourg Green Exchange and India INX at GIFT City. It was also recognised at the prestigious Environmental Finance Sustainable Debt Awards 2026, showcasing DFCC’s role in connecting Sri Lanka with credible and responsible capital sources.
The Bank’s customer-centric approach also received accolades at the LankaPay Technovation Awards 2026, securing a Gold Award for Financial Inclusivity and a Merit Award for Customer Convenience. DFCC Bank’s community engagement platforms, ‘Ride for Life’ and ‘Ride for Her’, continued to champion mental wellbeing and women’s empowerment, with a new initiative, ‘Ride for the Rosette’, raising awareness for Sri Lankan leopard conservation.
CEO’s Vision for Disciplined Growth
Commenting on the results, Mr. Thimal Perera, Director/Chief Executive Officer of DFCC Bank, stated, “DFCC Bank entered the second half of 2026 from a position of greater scale and a stronger core franchise. While reported profitability was lower than in the corresponding period, the half-year should be viewed in the context of the deliberate decisions we have taken to protect the quality and resilience of the franchise. We strengthened impairment provisioning through model refinements and management overlays, maintained a selective approach to lending, and continued to exercise cost and liquidity discipline.”
He further added, “The completion of the Standard Chartered acquisition marks a new strategic phase for us. This is more than an acquisition; it’s an opportunity to deepen our retail and wealth proposition and bring the DFCC Bank experience to a broader community with care, consistency, and trust. Our focus moving forward is clear: integrate our expanded franchise well, protect asset quality, strengthen sustainable income streams, and continue building a Bank that is easier to work with while deepening our contribution to Sri Lanka’s progress.”
Robust Financial Position and Capital Compliance
As at 30th June 2026, total equity was maintained at LKR 109 Billion, supported by the profit after tax and movements in the Bank’s securities portfolios. The Bank’s Tier 1 Capital Ratio stood at 11.947%, and the Total Capital Ratio at 15.707%, both well above the regulatory minimums. Additionally, the Net Stable Funding Ratio (NSFR) of 124.43% and Liquidity Coverage Ratio (LCR) of 162.26% demonstrated robust liquidity management. The Bank is also in the process of issuing Basel III-compliant Tier II debentures to raise up to LKR 15 Billion, further strengthening its capital position.
DFCC Bank’s interim financial statements for the period ended 30th June 2026 reflect a strategic vision executed with discipline, positioning the Bank for continued sustainable growth and enhanced value creation for its stakeholders.
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