It is with great pride that I reflect on DFCC Bank’s outstanding performance in 2024—a year in which we not only surpassed key milestones but also created sustainable value for our shareholders. Despite the uncertainties of a recovering national economy and global geopolitical complexities, we remained resilient and agile, staying true to our core values while fostering financial inclusivity for all stakeholders.

ESG and Sustainability: The Cornerstone of Our Strategy

Our values define our culture, and ESG and sustainability are central to our strategic direction. As climate change continues to pose challenges, exacerbated by natural disasters and energy shortages, we recognise the need for proactive solutions. In response, we introduced scalable financial solutions that drive a more sustainable future. A key milestone was the launch of Sri Lanka’s first-ever Green Bond, which was initially listed on the Colombo Stock Exchange (CSE) and thereafter listed on the Luxembourg Stock Exchange (LuxSE) under the Luxembourg Green Exchange (LGX), reinforcing our leadership in sustainable finance. This achievement builds on our 2023 UN accreditation as Sri Lanka’s only direct access entity of the Green Climate Fund (GCF), further strengthening our commitment to responsible banking.

To enhance our ESG framework, we have established the Executive Sustainability Management Committee to identify and mitigate ESG risks. A notable initiative was implementing a lending filter system to ensure that sustainability remains at the core of our financing decisions.

Transformational Service Excellence

Our commitment to service excellence is driving our transformation towards being Sri Lanka’s most customer-centric bank. This effort is led by our specialist Service Excellence Unit, and is focused on refining every customer touchpoint. Whether through our physical branches or digital platforms, we are redefining engagement to deliver seamless banking experiences.

Customer insights remain at the heart of our approach. By gathering and analysing real-time feedback, we continue to enhance service experiences and co-create solutions that address evolving customer needs. These efforts empower key segments, including women entrepreneurs, SMEs, and both corporate and retail clients.

Technology and Digital Transformation

As digital innovation reshapes the financial landscape, we continue to invest in technology to enhance efficiency, security, and customer empowerment. To drive our fintech evolution and maintain our competitive edge, we have appointed a Chief Digital Officer to lead our digital transformation. Our roadmap integrates artificial intelligence (AI) within a robust IT infrastructure, ensuring data security and regulatory compliance.

In 2024, we introduced DFCC ONE, a mobile banking app that gives customers greater control over their finances. For corporate clients, we streamlined operations through virtual accounts, digital Letters of Credit, and an interactive trade module. Additionally, our digitised supply chain finance solutions are expected to further strengthen business partnerships.

Our People: The Heart of DFCC Bank

Our employees are our greatest asset, and their dedication has been instrumental in our success. With a dynamic team of over 2,400 professionals, we have navigated challenges and delivered strong financial results.

We continue to invest in attracting and retaining top talent while fostering a culture of collaboration and innovation. Our training and development programmes encompass leadership training, service excellence workshops, and technical skill-building initiatives to ensure our workforce remains future-ready.

To enhance the employee experience, we have introduced upgraded compensation and benefits, as well as initiatives such as our Listening Wall, which promotes open dialogue across all levels of the organisation. Recognising the evolving needs of younger professionals, we have also created modern, collaborative workspaces designed to inspire creativity and engagement.

Commendable Financial Performance

Despite economic challenges, DFCC Bank demonstrated resilience and agility, delivering an outstanding financial performance in 2024:

• Total assets grew by 9.6% year-on-year to LKR 703 Bn as at 31 December 2024, driven by strong lending portfolio growth.
• Net interest income remained resilient despite interest rate volatility, reflecting prudent asset and liability management.
• Profit before tax increased by 23.16% year-on-year to LKR 13.5 Bn, with Earnings Per Share improving to LKR 19.40.
• Return on Assets and Return on Equity improved to 2.0% and 10.9%, respectively.
• Our capital position remains strong, with a Total Capital Adequacy Ratio of 15.76%, ensuring financial stability and a solid foundation for future growth.

Risk Management and Governance

A robust risk and governance framework underpins our operations, ensuring regulatory compliance, transparency, and ethical business practices. In 2024, we contributed LKR 9.5 Bn in taxes, playing a key role in supporting the national economy and demonstrating our commitment to responsible corporate citizenship.

We continue to refine our risk management frameworks, aligning with global and industry best practices to enhance stakeholder confidence and ensure sustainable growth.

Our employees are our greatest asset, and their dedication has been instrumental in our success. With a dynamic team of over 2,400 professionals, we have navigated challenges and delivered strong financial results.

A Vision for the Future

DFCC Bank’s achievements in 2024 reaffirm our commitment to sustainable growth, customer-centricity, and digital transformation. As we move forward, we will continue to build on our ESG principles, drive customer centricity, leverage advanced technology, and foster a culture of excellence to create long-term value.

We remain cautiously optimistic about Sri Lanka’s economic recovery, acknowledging the challenges that may arise in 2025 and beyond. Lending activity is gradually gaining momentum, particularly with a modest revival in the construction sector. As a premier banking institution, we are well-positioned to support economic development, reinforcing our leadership in corporate, retail, and SME banking. Our sustainability agenda will continue to drive meaningful initiatives in environmental protection, while our stakeholder engagement framework will ensure integrity and transparency in all we do.

Acknowledgements

I extend my deepest gratitude to our dedicated employees, whose resilience and commitment have been the driving force behind our success. I also sincerely thank our Chairman and Board of Directors for their unwavering guidance and support. My appreciation extends to the Central Bank of Sri Lanka, the Governing Board, and the Monetary Policy Board for their regulatory oversight and policy direction.

Above all, I am grateful to our loyal customers, whose trust and confidence inspire us to continuously innovate and improve. As we move forward, DFCC Bank remains steadfast in its commitment to customer-centricity, innovation, service excellence, financial inclusion, and sustainable banking, ensuring a prosperous future for all stakeholders.

N H T I Perera
Chief Executive Officer

19 February 2025