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FINANCIAL CHRONICLE™ » FINANCIAL CHRONICLE™ » DFCC BANK PLC (DFCC.N0000)

DFCC BANK PLC (DFCC.N0000)

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61DFCC BANK PLC (DFCC.N0000) - Page 4 Empty Re: DFCC BANK PLC (DFCC.N0000) Fri Oct 03, 2014 9:41 am

Harry82


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
Very Happy Very Happy Very Happy Very Happy

62DFCC BANK PLC (DFCC.N0000) - Page 4 Empty Re: DFCC BANK PLC (DFCC.N0000) Fri Oct 03, 2014 9:42 am

Harry82


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
already i said that

63DFCC BANK PLC (DFCC.N0000) - Page 4 Empty Re: DFCC BANK PLC (DFCC.N0000) Fri Oct 03, 2014 9:42 am

Harry82


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
now i am saying Samp will pass 300.00 within 1 month

64DFCC BANK PLC (DFCC.N0000) - Page 4 Empty Re: DFCC BANK PLC (DFCC.N0000) Fri Oct 03, 2014 9:54 am

novicer


Senior Equity Analytic
Senior Equity Analytic
What will be the exit price for DFCC

65DFCC BANK PLC (DFCC.N0000) - Page 4 Empty Re: DFCC BANK PLC (DFCC.N0000) Fri Oct 03, 2014 11:07 am

MARKETWATCH2


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
@nickjava wrote:
@MARKETWATCH2 wrote:support Rs.200/201.If it goes below that Rs.180/. Target Rs.230/-

Cool, any update on the merger?, if things go well, i think this would go upto the level of NDB. but target price of 230 should be well in target i think.

Now Rs.230/

66DFCC BANK PLC (DFCC.N0000) - Page 4 Empty Re: DFCC BANK PLC (DFCC.N0000) Fri Oct 03, 2014 11:54 am

novicer


Senior Equity Analytic
Senior Equity Analytic
Now its 233...

How far will it go?

67DFCC BANK PLC (DFCC.N0000) - Page 4 Empty Re: DFCC BANK PLC (DFCC.N0000) Fri Oct 03, 2014 12:06 pm

nickjava


Manager - Equity Analytics
Manager - Equity Analytics
For me i think this would go upto 250. need to keep a watch on ASI, this will have a run till ASI reach 7500. after that need to see where the market move Smile

68DFCC BANK PLC (DFCC.N0000) - Page 4 Empty Re: DFCC BANK PLC (DFCC.N0000) Fri Oct 03, 2014 12:13 pm

Harry82

Harry82
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
DFCC exit price is around Rs 260.00

69DFCC BANK PLC (DFCC.N0000) - Page 4 Empty Re: DFCC BANK PLC (DFCC.N0000) Fri Oct 03, 2014 6:56 pm

PrabathR


Manager - Equity Analytics
Manager - Equity Analytics
@Harry82 wrote:DFCC exit price is around Rs 260.00


what you mean by exit price.

70DFCC BANK PLC (DFCC.N0000) - Page 4 Empty Re: DFCC BANK PLC (DFCC.N0000) Fri Oct 03, 2014 8:43 pm

novicer


Senior Equity Analytic
Senior Equity Analytic
@Harry82 wrote:DFCC exit price is around Rs 260.00

How long will it take to reach 260

71DFCC BANK PLC (DFCC.N0000) - Page 4 Empty Re: DFCC BANK PLC (DFCC.N0000) Fri Oct 03, 2014 8:46 pm

PrabathR


Manager - Equity Analytics
Manager - Equity Analytics
when is they going to split this.

72DFCC BANK PLC (DFCC.N0000) - Page 4 Empty Re: DFCC BANK PLC (DFCC.N0000) Fri Oct 03, 2014 8:57 pm

novicer


Senior Equity Analytic
Senior Equity Analytic
@PrabathR wrote:when is they going to split this.

What did you mean? Are they going to split the share??

73DFCC BANK PLC (DFCC.N0000) - Page 4 Empty Re: DFCC BANK PLC (DFCC.N0000) Fri Oct 03, 2014 10:00 pm

PrabathR


Manager - Equity Analytics
Manager - Equity Analytics
@novicer wrote:
@PrabathR wrote:when is they going to split this.

What did you mean? Are they going to split the share??

i mean since this price it going to hit 300 its bit high for lot of investors. so are they going to split this or not.

74DFCC BANK PLC (DFCC.N0000) - Page 4 Empty Re: DFCC BANK PLC (DFCC.N0000) Sat Oct 04, 2014 7:05 am

MARKETWATCH2


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
dfcc was least appreciated one at the beginning. now it broke Rs.230 from Rs.155.

75DFCC BANK PLC (DFCC.N0000) - Page 4 Empty Re: DFCC BANK PLC (DFCC.N0000) Sat Oct 04, 2014 7:13 am

nickjava


Manager - Equity Analytics
Manager - Equity Analytics
A split is highly unlikely. because of merger.

76DFCC BANK PLC (DFCC.N0000) - Page 4 Empty Re: DFCC BANK PLC (DFCC.N0000) Sat Oct 04, 2014 4:11 pm

karuna


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
dfcc.n pass 243-/ 245 next week .then huge drop. to
230-/ after dfcc.n go to 250-/ very fast, but ndb.n nothing happan. it will go up. nothing huge drop no next week
ndb.n hit 273-/ . /285-/ see it

77DFCC BANK PLC (DFCC.N0000) - Page 4 Empty Re: DFCC BANK PLC (DFCC.N0000) Sat Oct 04, 2014 7:20 pm

novicer


Senior Equity Analytic
Senior Equity Analytic
@PrabathR wrote:
@novicer wrote:
@PrabathR wrote:when is they going to split this.

What did you mean? Are they going to split the share??

i mean since this price it going to hit 300 its bit high for lot of investors. so are they going to split this or not.

I really don think so...
Coz it was trading around 500 - 600 3 years back.. After the bonus issue only it came down.
Further there will be a merger in near future..

So I dont thin that they will split the share now

78DFCC BANK PLC (DFCC.N0000) - Page 4 Empty DFCC Bank - A very valuable counter Thu May 25, 2017 9:37 am

EquityChamp

EquityChamp
Moderator
Moderator
For you all my advise is to look at DFCC very closely.

Well on course for a PAT target of 5Bn

Realized capital gain of over 1Bn from the sale of Commercial Bank block.

Thanks

79DFCC BANK PLC (DFCC.N0000) - Page 4 Empty Re: DFCC BANK PLC (DFCC.N0000) Thu May 25, 2017 9:41 am

EquityChamp

EquityChamp
Moderator
Moderator
The announcement is out.

The final capital gain is Rs915Mn

https://cdn.cse.lk/cmt/upload_cse_announcements/9461495682998_.pdf

Thanks

80DFCC BANK PLC (DFCC.N0000) - Page 4 Empty Re: DFCC BANK PLC (DFCC.N0000) Wed Apr 11, 2018 6:13 pm

EquityChamp

EquityChamp
Moderator
Moderator
So where are we now on DFCC. Very good and consistent results but the stock moved further down. How long do you think that it can stay at these bargain levels.

81DFCC BANK PLC (DFCC.N0000) - Page 4 Empty Re: DFCC BANK PLC (DFCC.N0000) Wed May 09, 2018 5:18 pm

Dietoday


Stock Trader
Hi EC,

Now DFCC @ 115 level ? Is this price good to collect this or price decline due to any other reason. Very Happy

82DFCC BANK PLC (DFCC.N0000) - Page 4 Empty DFCC BANK PLC (DFCC.N0000) Fri Nov 02, 2018 6:51 am

ruwan326

ruwan326
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
Sri Lanka's DFCC Bank Sep net up 90-pct

Nov 02, 2018 

Profits at Sri Lanka's listed DFCC Bank Plc rose 90 percent from a year earlier to 810.8 million rupees in the September 2018 quarter despite rising provisioning for bad loans on improving interest margins and a one-off gain from equity sales, interim accounts showed.

The banking group reported earnings of 3.06 rupees a share in the quarter. For the nine months to end September 2018, earnings were 9.54 rupees a share on a profit of 2.5 billion rupees, down 26 percent from a year earlier.

DFCC Bank closed 5 rupees higher at 97.60 rupees on Thursday.
In the September quarter, net interest income grew 18 percent from a year earlier to 3.5 billion rupees, as interest income rose 15 percent to 10 billion rupees and interest expenses increased 14 percent to 6.6 billion rupees.

Net interest income growth was achieved by expanding the loan book and re-pricing deposit liabilities, DFCC Bank said.
The bank reported an interest margin of 3.8 percent at end September, up from 3.6 percent nine months earlier.
Net fee and commission income grew 25 percent to 515.5 million rupees.

Net gains from financial instruments surged 359 percent to 2.2 billion rupees on account of gains from the sale of shares of listed Commercial Bank of Ceylon Plc, which was a one-off gain, DFCC Bank said.
The banking group reported a net operating loss of 2.2 billion rupees in the quarter, down from a profit of 445 million rupees a year earlier, due to a 3.8 billion foreign exchange loss in the period, deepening from a loss of 613 million rupees a year earlier.

Bad loans provisioning increased 2 percent from a year earlier to 490.3 million rupees. Non-performing loans were 3.26 percent of total loans, up from 2.77 percent nine months earlier.
The rise in non-performing loans was due to "adverse environmental conditions that prevailed during this time," Lakshman Silva, Chief Executive Officer at DFCC Bank told shareholders in a statement.
"However, recovery processes are being rigorously pursued to minimize any actual losses that may arise from such exposures," he said.
Operating expenses including personnel costs and investments in branch expansions rose 22 percent to 1.7 billion rupees, the banking group said.

DFCC Bank's loan book expanded 14 percent from nine months earlier to 243.4 billion rupees at end September 2018. Its deposit based grew a faster 19 percent to 230.4 billion rupees.

"The bank’s CASA ratio, which represents low cost deposits over the total deposits of the bank was 20.1 percent at end September 2018," Silva said.
"DFCC bank continues to enjoy medium to long term low cost borrowing lines that helped to reduce the funding cost. When these term borrowings are added to deposits, the ratio improved to 27.7 percent as at 30 September 2018," he said.
DFCC Bank's Tier 1 capital ratio was 10.36 percent at end September 2018, down from 13.093 percnt nine months earlier but higher than the regulatory minimum of 7.875 percent.
Total capital adequecy was 16.067 percent, higher than the regulatory minimum of 11.875 rupees, but lower than the 16.529 percent achieved nine months earlier. (COLOMBO, 02 November 2018)


https://economynext.com/Sri_Lanka_s_DFCC_Bank_Sep_net_up_90_pct-3-12447-17.html

83DFCC BANK PLC (DFCC.N0000) - Page 4 Empty wat will be dfcc Thu Dec 26, 2019 9:00 pm

De23


Stock Analytic
Stock Analytic
how about the dfcc, now at near 90. what is target price in near future

84DFCC BANK PLC (DFCC.N0000) - Page 4 Empty Re: DFCC BANK PLC (DFCC.N0000) Sun Mar 01, 2020 11:28 am

Quibit


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
DFCC Bank, the largest entity within the group recorded a profit after tax (PAT) of Rs 2,828 million for the year ended December 31, 2019 excluding the fair value loss on Commercial Bank of Ceylon PLC (CBC) in comparison to profit after tax of Rs 3,646 million recorded in the comparative year.

The Bank’s profit after tax with the fair value loss on CBC shares amounted to Rs 2,074 million for the current year against Rs 2,768 million in the comparative year.

The Group recorded a profit after tax of Rs 2,300 million for the year ended December 31, 2019 compared to Rs 3,070 million in the comparative year. Decline in PAT is mainly due to the increase in impairment and taxes on financial services. Taxes on financial services increased to Rs 1,548 million due to Debt Repayment Levy introduced during last quarter of 2018. Notwithstanding the turbulent environment in the country, the Bank recorded a Rs 12,662 million in net interest income (NII) which is a 2% growth YoY. This NII Growth was possible even after Bank meeting the conditions stipulated by Central Bank of Sri Lanka to reduce the lending rates by 250 basis points by December 2019 compared with the rates applicable in April 2019.

As a part of its growth strategy, DFCC continuously invests in its organization and infrastructure. The bank increased its island wide footprint by commencing 20 full service branches in 30 Days. The overall impairment provision increased due to adverse business environment faced by most industries. As a result, the impairment provision during the year under review increased to Rs 1,669 million,compared to Rs 1,056 million recorded in the comparable year.

Investments in equity securities and treasury bills and bonds (fixed income securities)are classified as financial assets and the change in fair value is recorded through other comprehensive income.

Reflecting its growth Strategy,DFCC Bank’s total assets increased by Rs 29,989 million recording a growth of 8% since December 2018.

The Bank’s deposit base as at December 31, 2019 increased to Rs 247,787 million from Rs 242,238 million as at December 31, 2018, which is a growth of 2%.

85DFCC BANK PLC (DFCC.N0000) - Page 4 Empty Re: DFCC BANK PLC (DFCC.N0000) Wed May 06, 2020 7:51 pm

Quibit


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
Tue 05 May, 2020 – 19:45 ET

Fitch Ratings – Singapore – 05 May 2020: Fitch Ratings has downgraded Sri Lanka-based DFCC Bank PLC’s Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) to ‘B-‘ from ‘B’ and its Viability Rating (VR) to ‘b-‘ from ‘b’. The Outlook on the Long-Term IDR is Negative. The Short-Term IDR has been affirmed at ‘B’. The Support Rating and Support Rating Floor have been affirmed at ‘5’ and ‘No Floor’, respectively.

The rating actions follow the downgrade of Sri Lanka’s sovereign rating to ‘B-‘ on 24 April 2020, which reflects the impact of the escalating coronavirus pandemic on Sri Lanka’s economy. For more details on the sovereign rating action, please see “Fitch Downgrades Sri Lanka to ‘B-‘; Outlook Negative” at www.fitchratings.com.



We have revised our assessment of Sri Lankan bank’s operating environment to ‘b-‘/negative, from ‘b’/negative, primarily to reflect the heightened risk of doing business in the jurisdiction.

Under Fitch’s base case scenario, we forecast the world economy and the Sri Lankan economy to contract by 3.9% and 1.0%, respectively, in 2020.

We expect the banks’ financial profiles to come under stress from the more challenging operating environment, and their key credit metrics are likely to be weaker than our previous expectations, despite regulatory reliefs.

We expect GDP growth of 4% for Sri Lanka in 2021 as tourism receipts gradually recover from late 2020, but this forecast is subject to an unusually high degree of uncertainty and downside risk, as it depends on the evolution of the pandemic within Sri Lanka and globally.

Correspondingly the outlook for the operating environment assessment is maintained at negative to reflect the possibility of further downside should the potential impact of the economic fallout from the coronavirus pandemic become more pronounced or linger.

KEY RATING DRIVERS

IDRS AND VR

DFCC’s IDRs are driven by its VR, the downgrade of which is driven by our assessment of the operating environment, which we believe continues to have a high influence on bank ratings through its impact on financial and non- financial rating factors. Downside risks to DFCC’s financial metrics include weaker asset quality and earnings, as well as pressure on capital and funding and liquidity amid the Covid-19 pandemic.

The Negative Outlook on DFCC’s IDR reflects the outlook for the operating environment assessment, which is maintained at negative to reflect the possibility of further downside.



We believe that extension of the impact of the virus could intensify the asset quality pressures the bank already faces, and as such we have revised the outlook on DFCC’s asset quality rating factor to negative from stable.

DFCC’s impaired loans (stage 3) ratio increased to 8.4% by end-2019 from 5.8% at end-2018, driven by loans to government institutions where the facilities carry a full Treasury guarantee (56% of the incremental stage 3 loans in 2019). The bank’s stressed regulatory non-performing loans ratio (including rescheduled and restructured loans) continues to be high.

DFCC has one of the weakest earnings and profitability profiles among Fitch-rated large private banks in Sri Lanka and its earnings were under stress in 2019 due to slower loan growth, heavy trading losses on its equity stake in Commercial Bank of Ceylon PLC (COMB: AA(lka)/Negative), and higher credit costs.

We expect margin pressure through lower interest rates amid subdued credit demand and higher provisioning and credit losses stemming from the pandemic to worsen DFCC’s profitability metrics.

We have therefore lowered the mid-point of the earnings and profitability assessment to ‘b-‘ and revised the outlook to negative to reflect further downside to earnings should the downturn prove to be significantly worse than our base case.

DFCC’s common equity Tier 1 ratio stood at 11.3% at end-2019, lower than that of similarly rated peers. While we believe that access to capital is greater for DFCC via its 13.5% stake in COMB, the realizable gains from this could remain low in the medium term given the weak performance of Sri Lanka’s stock market. We have lowered the mid-point of the capitalisation and leverage rating factor to ‘b’ and revised the outlook to negative to reflect our view that there is further risk to capital buffers should the downturn prove to be significantly worse than our base case.



DFCC is funded mainly by deposits, but its deposit franchise lags behind that of larger and more-established peers. The bank also has a significant amount of foreign-currency funding, which accounted for 20% of total funding at end-2019 (13% in deposits and 7% in wholesale funding).

We believe that accessing such foreign-currency funding could become more challenging, both in terms of accessibility and pricing, to due increasing country risks.

As such, we have revised the outlook on the funding and liquidity mid-point score of ‘b-‘ to negative.

SUPPORT RATING AND SUPPORT RATING FLOOR

Fitch’s assessment is that state support may be possible for DFCC, but timely sovereign support cannot be relied upon in light of the sovereign’s weakened financial ability. Furthermore, the bank’s franchise is small with market share of around 3% of system assets against 8%-11% for the larger private banks.

RATING SENSITIVITIES

Factors that could, individually or collectively, lead to positive rating action/upgrade:
IDRS AND VR
DFCC’s ratings are constrained by the sovereign rating. Fitch does not currently anticipate developments with a high likelihood of leading to an upgrade given the pressure on the sovereign rating and deteriorating operating environment.

The Outlook on DFCC’s IDR could be revised to Stable if our assessment of the operating environment improves.

SUPPORT RATING AND SUPPORT RATING FLOOR

An upgrade of DFCC’s Support Rating and upward revision of the bank’s Support Rating Floor would be contingent on a positive change in the sovereign’s ability to provide support, which we do not expect in the near to medium term.

Factors that could, individually or collectively, lead to negative rating action/downgrade:

IDRS AND VR

DFCC’s IDRs and VR could be downgraded if the operating environment deteriorates
significantly beyond our base case scenario, likely triggered by a downgrade of the sovereign rating or caused by a larger GDP contraction or slower economic recovery than we expect, which would also result in a lowering of our assessment of most of the bank’s financial profile factors.

In particular, such an environment would see greater and more prolonged asset-quality deterioration with an increase in its impaired loans/ gross loans to over 14%, which would put further pressure on DFCC’s earnings and capitalisation.

SUPPORT RATING AND SUPPORT RATING FLOOR

DFCC’s Support Rating and Support Rating Floors are already at their lowest level and no downside is possible.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Financial Institutions issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years.

The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from ‘AAA’ to ‘D’. Best- and worst-case scenario credit ratings are based on historical performance. For more information about the methodology used to determine sector-specific best- and worst-case scenario credit ratings, visit https://www.fitchratings.com/site/re/10111579.

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING

The principal sources of information used in the analysis are described in the Applicable Criteria.

ESG CONSIDERATIONS

The highest level of ESG credit relevance, if present, is a score of 3. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity(ies), either due to their nature or to the way in which they are being managed by the entity(ies).

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