Financial Reports

Notes to the Financial Statements

1.1 Corporate information

DFCC Bank PLC (“the Bank”) is a limited liability public company incorporated and domiciled in Sri Lanka.

The Bank was incorporated in 1955 under DFCC Bank Act No. 35 of 1955 as a limited liability public company. The ordinary shares of the Bank were listed in the Colombo Stock Exchange (CSE).

Consequent to the enactment of the DFCC Bank (Repeal and Consequential Provisions) Act No. 39 of 2014, the DFCC Bank Act No. 35 of 1955 was repealed and the Bank was incorporated under the Companies Act No. 07 of 2007 as a public limited company listed in the Colombo Stock Exchange with the name “DFCC Bank PLC” with effect from 6 January 2015.

On 1 October 2015 DFCC Vardhana Bank PLC (DVB) was amalgamated with DFCC Bank PLC in accordance with the provisions of Part VIII of the Companies Act No. 07 of 2007 with DFCC Bank PLC surviving as the amalgamated entity.

DFCC Bank PLC (DFCC) also obtained a commercial banking license from the Monetary Board of the Central Bank of Sri Lanka in terms of the Banking Act No. 30 of 1988, as amended, and accordingly upon the amalgamation now operates as a licensed commercial bank.

The registered office of the Bank is at No. 73/5, Galle Road, Colombo 3.

Total staff strength of the Group and Bank on 31 December 2019 was as follow:

Group 2,192 (31 December 2018 – 1,963)
Bank 2,076 (31 December 2018 – 1,860)

1.2 Consolidated Financial Statements

DFCC Bank PLC as the parent of subsidiaries under its control is required to present only the consolidated financial statements as per Sri Lanka Accounting Standard – SLFRS 10 on “Consolidated Financial Statements” and the proportionate share of the profit or loss and net assets of its Associates and joint Ventures in terms of the Sri Lanka Accounting Standard – LKAS 28 on “Investments in Associates and joint ventures”. In addition to the consolidated financial statements, separate financial statements are also presented as per the Companies Act, No. 07 of 2007 and Banking Act, No. 30 of 1988 and amendments thereto.

The Bank’s financial statements comprise the amalgamation of the financial statements of the Domestic Banking Unit (DBU) and the Foreign Currency Banking Unit (FCBU).

1.3 Parent entity and ultimate parent entity

The Bank does not have an identifiable parent of its own. The Bank is the ultimate parent of the Group companies.

1.4 Principal business activities, nature of operations of the Group and ownership by the Bank in its subsidiaries, associates and joint venture

A summary of principal activities of DFCC Bank PLC, its subsidiary companies, associate company and joint venture company is as follows:

Entity Principal business activity
DFCC Bank PLC Range of financial services such as accepting deposits, corporate credit and retail banking, personal financial services, project financing, investment banking, foreign currency operations, trade finance and dealing in Government Securities, and Treasury-related products.
DFCC Consulting (Pvt) Limited Technical, financial, and other professional consultancy services in Sri Lanka and abroad.
Lanka Industrial Estates Limited Leasing of land and buildings to industrial enterprises.
Synapsys Limited Information technology services and information technology enabled services.
National Asset Management Limited Management of Unit Trust and private portfolios.
Joint venture
Acuity Partners
(Pvt) Limited
Investment banking-related financial services.

There were no significant changes in the nature of the principal activities of the Group during the financial year under review.

1.5 Approval of Financial Statements

The financial statements for the year ended 31 December 2019 were authorised for issue by the Directors on 18 February 2020.

1.6 Responsibility for Financial Statements

The responsibility of the Board of Directors in relation to the financial statements is set out in the Statement of Directors’ Responsibility report in the Annual Report.