Management Discussion and Analysis

Investor Capital

Investors are a key stakeholder in our value creation process and one of our primary objectives is to maximise our investor wealth by providing sustainable, long-term returns. We regularly engage with our investors through various means and they play an active role in shaping our corporate behaviour.

We have gained the trust of our investors by maintaining sustainable growth over the past years.

Shareholder profile

The Bank had 9,011 shareholders on 31 December 2019 (corresponding to a figure of 8,880 as at 31 December 2018), with the total number of shares in issue increasing during the year to 304,188,756 ordinary shares. Institutions account for approximately 85% of the Bank’s share capital. 72% of the Bank’s share capital is held by local shareholders, both institutional and individual.

Share information

DFCC Bank share price information for the period 1 January 2019 – 31 December 2019.

1 January to
31 December 2019
1 January to
31 December 2018
Price Indices
ASPI 6,129.21 6,052.37
S&P SL20 2,936.96 3,135.18
Share Price
Lowest Price (LKR) 67.00 87.00
Highest Price (LKR) 99.30 124.70
Closing Price (LKR) 91.90 93.00
Market Capitalisation
Value (LKR Mn) 27,955 24,654
Percentage of total market cap 0.98 0.87
Rank 22 24
Value of Shares Traded
Value (LKR Mn) 429 365
Percentage of total market turnover 0.25 0.18
Rank 61 59
Days Traded
Number of days traded 240 239
Total number of market days 241 240
Percentage of market days traded 99.58 99.58
Frequency of Shares Traded
Number of transactions 7,675 5,191
Percentage of total frequency 0.64 0.59
Rank 41 46

Distribution of shareholding

Categories of shareholders

As at 31 December 2019 31 December 2018
Shareholding, % Foreign Local Total Foreign Local Total
Individual 7.67 6.85 14.52 8.09 7.79 15.88
Institutional 20.42 65.06 85.48 15.82 68.30 84.12
28.09 71.91 100.00 23.91 76.09 100.00

Distribution of shareholding by size

Share range 31 December 2019 31 December 2018
Number of
Shareholders
Total holding % Number of
Shareholders
Total holding %
1 1,000 5,892 1,789,102 0.59 5,812 1,802,814 0.68
1,001 5,000 2,363 4,906,129 1.62 2,352 4,902,295 1.84
5,001 10,000 321 2,308,487 0.76 308 2,221,277 0.88
10,001 50,000 322 7,012,828 2.30 294 6,427,117 2.43
50,001 100,000 45 3,324,099 1.09 46 3,243,705 1.12
100,001 500,000 40 7,316,408 2.41 43 8,845,370 3.45
500,001 1,000,000 4 2,605,646 0.85 3 1,987,718 0.75
1,000,000 and above 24 274,926,057 90.38 22 235,667,392 88.85
9,011 304,188,756 100.00 8,880 265,097,688 100.00

Public holding as at 31 December 2019

31 December 2019 31 December 2018
Public holding percentage (%) 62.6 63.4
Number of public shareholders 8,996 8,867
Float adjusted market capitalisation (LKR Mn) 17,488 15,631
Applicable option as per CSE Listing Rule 7.13.1 (a) Option 1 Option 1

Twenty major shareholders of the Bank as at 31 December 2019

Name of shareholder/company 31 December 2019 31 December 2018*
No. of shares % No. of shares %
Hatton National Bank PLC A/c No. 1 45,354,596 14.91 32,396,140 12.22
Bank of Ceylon No. 2 A/C 38,039,994 12.51 38,039,994 14.35
M A Yaseen 30,418,875 10.00 26,506,750 10.00
Sri Lanka Insurance Corporation Ltd – Life Fund 26,509,832 8.71 26,509,832 10.00
Employees Provident Fund 24,368,995 8.01 24,368,995 9.19
Melstacorp PLC 22,383,614 7.36 22,175,280 8.36
Seafeld International Limited 17,716,794 5.82 15,286,794 5.77
BPSS Lux-Aberdeen Standard SICAV I – Asia Pacific Equity Fund 13,018,323 4.28 9,842,898 3.71
Citi Bank New York S/A Norges Bank Account 2 9,049,301 2.97
CB London S/A Aberdeen Asia Pacific Equity Fund 7,356,792 2.42 5,438,669 2.05
Renuka City Hotels PLC 6,926,870 2.28 6,926,870 2.61
BP2S London-Edinburgh Dragon Trust PLC 6,339,659 2.08 4,528,328 1.71
BP2S London-Aberdeen Standard Asia Focus PLC 5,214,933 1.71 3,866,936 1.46
Renuka Hotels PLC 4,073,360 1.34 4,073,360 1.54
Employees Trust Fund Board 3,987,952 1.31 3,987,952 1.50
Akbar Brothers (Pvt) Ltd A/c No. 1 2,578,688 0.85 2,578,688 0.97
Cargo Boat Development Company PLC 2,498,200 0.82 2,498,200 0.94
BP2S London-Aberdeen New Dawn Investment Trust XCC6 1,898,290 0.62 1,450,311 0.55
Stassen Exports (Pvt) Limited 1,896,791 0.62 362,788 0.14
Anverally International (Pvt) Ltd. 1,682,148 0.55 1,579,345 0.60
Total of the 20 major shareholders 271,314,007 89.17
Other shareholders 32,874,749 10.83
Total 304,188,756 100.00

* Shareholding as at 31 December 2018 of the twenty largest shareholders as at 31 December 2019.


We have gained the trust of our investors by maintaining sustainable growth over the past years.

Return to shareholders – Bank

Description 2019 2018
Profit for the year (LKR Mn) 2,074 2,768
Return on total assets (%)* 0.78 0.80
Net assets per share (LKR) 156.09 165.40
Earnings per share (LKR) 7.14 10.44
Dividend per share (LKR) 3.00 3.50

* After eliminating fair value reserve

Financial return

The Bank aims to regularly provide high shareholder returns through profitable and sustainable performance. The Directors recommended a first and final dividend of LKR 3.00 per share for the year ended 31 December 2019. Dividends are based on growth in profits, while taking into account future cash requirements and the maintenance of prudent ratios.

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