DFCC Bank is dedicated to maintaining transparency and accountability in its reporting by adhering to globally recognised frameworks, standards, and guidelines. As part of our commitment to enhancing disclosure quality, we are actively reviewing the recently introduced IFRS/SLFRS S1 and S2 standards to achieve holistic alignment in future reporting cycles. Recognising our position as one of the Top 100 listed companies, we are working towards integrating these standards into our reporting practices wherever feasible.

To support this transition, we are streamlining internal data-capturing mechanisms and processes to enable full compliance with these standards. While qualitative aspects of these standards are reflected in this year’s disclosures, we aim for a more comprehensive alignment in the coming years. This effort is complemented by our adherence to other globally recognised frameworks, including the SASB financial sector guidance and the TCFD recommendations, which further enrich the quality of our reporting.

DFCC Bank’s approach to reporting is guided by the following key frameworks, standards, and regulations across different reporting domains:

By integrating these diverse frameworks and standards, DFCC Bank ensures its reporting practices meet the highest levels of transparency, reliability, and alignment with global best practices. The Bank adheres to both mandatory and voluntary reporting frameworks, ensuring compliance with regulatory requirements while striving to align with industry-leading standards. This comprehensive approach reflects our commitment to delivering value to all stakeholders while driving sustainable growth.

DFCC Bank’s value creation process is comprehensively detailed in the Business Model ( How We Create Value page ). The model conceptualises value creation through the lens of inputs, outputs, and outcomes across various forms of capital, highlighting their creation, transformation, and consumption. The value derived by the Bank and delivered to its stakeholders is articulated under outputs, while the broader impact of these outputs is described as outcomes.

The Bank classifies its reporting themes primarily in alignment with the <IR> framework conceptualised by IFRS, categorising them as Financial Strength, Institutional Wealth, Employees, Customers, Business Partners, Investors, Community, and Natural Resources. Integrated reporting assumes that the generation of financial strength, as well as the cohesive integration of other themes in supporting the creation of financial strength, is driven by their interdependencies, including non-financial interactions. Through its operations, the Bank creates value for both itself and its stakeholders, while also consuming, developing, and transforming these capitals in the process.

According to the principles of integrated reporting, a subject is deemed material if it substantively affects the ability of an organisation to create value in the short, medium, and long-term. Materiality is largely industry specific, but can also vary with the organisation. Ascertainment of material matters requires input from all key divisions of the Bank and must consider all stakeholder groups’ perspectives. The process must also be placed in the context of the operating environment. Identification of material matters is interwoven with the identification of risks and opportunities featured throughout the Report. Please refer to page 70 for further details.

We use the Precautionary Principle as a social and environmental decision-making guideline. The salient points of the principle are:

• Taking preventive action in the face of uncertainty
• Shifting the burden of proof to the proponents of an activity
• Exploring a wide range of alternatives to possibly harmful actions
• Increasing public participation in decision making

This Report contains “forward-looking” statements which have been included to enhance the future orientation of the Report. These are based on information available at the time of preparation of the Report sourced from reliable and publicly available information, internal information and our perceptions and opinions.

These statements can be verified only with hindsight and therefore, have significant levels of uncertainty associated with the same. As Sri Lanka is on a path to economic recovery and geopolitical risks continue to remain high, the external operating environment continues to remain fluid, and readers are advised to exercise their judgement using the latest available information at the time of assessing such forward-looking statements. While significant efforts have been made to ensure the validity of these, all forward-looking statements are provided without recourse or any liability whatsoever to the Board or other preparers of the Annual Report due to the reasons enumerated above.

Between 2020 and 2023, the Bank navigated a period of significant turbulence, marked by political, economic, and social uncertainties. While the current environment has shown signs of stabilisation, it remains somewhat fluid and dynamic. In this context, adopting a forward-looking perspective is essential. Although the future cannot be predicted with certainty, the Bank strives to anticipate and present the most probable scenarios based on informed analysis and strategic insights.

Reporting Best Practices Adopted

We have reported on material matters with environmental, social and governance factors as the foundation.

Icons have been used to connect strategy, material themes and stakeholders throughout the report.

We have presented a balanced view of our performance, including both positive, neutral and negative aspects.

The mandatory independent review of the Financial Statements, including the notes to the accounts, has been provided by External Auditors – Messrs KPMG Sri Lanka, Chartered Accountants. Their opinion is given on Independent Auditors' Report page.

Further, independent assurance on the following presented in this Report has been provided by Messrs Ernst & Young, Sri Lanka (EY).

• Independent assurance on DFCC Bank’s reporting adherence to the GRI standards on Independent Assurance Report on Sustainability Reporting page.
• Independent assurance on DFCC Bank’s reporting adherence to the Integrated Reporting Framework on Independent Assurance Report for Integrated Reporting page.

Following icons are used in this Report to depict the stakeholders, that are impacted by our business or impact us, by their market behaviour.

Financial Strength

Institutional Wealth

Employees

Customers

Business Partners

Natural Resources

Investors

Community

Manufactured Wealth

All previous Integrated Annual Reports including the most recent report for the financial year 2023 are available for viewing and downloading on the Bank’s website – www.dfcc.lk.

2019

2020

2021

2022

2023

The Board of Directors of DFCC Bank PLC confirms that the Annual Report 2024 has been prepared and presented in accordance with the <IR> Framework and acknowledges its responsibility for ensuring the integrity of this Integrated Report. Accordingly, the Board is satisfied with the presentation of information with regard to the Bank’s strategy and value creation which addresses material matters relevant to the Bank and its stakeholders. The Board has considered the completeness of the information presented in the Report based on the combined assurance process outlined above.

Signed on behalf of the Board,

N H T I Perera
Director/Chief Executive Officer

For feedback or any clarification on this Report please write to:

Ms N Ranaraja
The Company Secretary

DFCC Bank PLC
73/5, Galle Road,
Colombo 3,
Sri Lanka.

Phone: +94 11 244 2442
Email: care@dfccbank.com
Website: www.dfcc.lk