DFCC Bank achieved solid growth across key metrics in the first half of 2026, with total assets rising 7% to LKR 921 billion and net fee income surging 29%, even as the lender reinforced its prudential buffers amid geopolitical uncertainties.

DFCC Bank entered the second half of 2026 with an expanded business portfolio following sustained growth across lending, deposits, and fee income during the opening six months of the year. The lender's loan and deposit portfolios grew by 9% and 12% respectively since the end of 2025, while total assets increased by 7% to LKR 921 billion. Net interest income rose 6% to LKR 16 billion, and net fee and commission income climbed 29% to LKR 4.2 billion, indicating solid momentum across the bank's core revenue streams.

Profitability remained resilient despite a more constrained external environment. The bank recorded a core business profit after tax of LKR 4.1 billion, though this represented a decline from the corresponding period last year. Management attributed the lower profit partly to a deliberate decision to strengthen provisions against credit risk, increasing impairment charges by LKR 1.1 billion as geopolitical tensions and macroeconomic uncertainties persisted. The Central Bank of Sri Lanka's decision to raise the Overnight Policy Rate by 100 basis points to 8.75% in May added to the challenging conditions. Despite these headwinds, the bank's net stage 3 impaired loan ratio improved to 3.61% from 4.55%, indicating strengthened asset quality.

A major post-reporting development was DFCC Bank's completion of its acquisition of Standard Chartered Bank's Wealth and Retail Banking Business in Sri Lanka, effective August 1, 2026. The transaction brought approximately 50,000 customer accounts and 260 employees into the fold, expanding the bank's network to 139 locations nationwide and significantly broadening its retail and wealth management capabilities. The bank maintained a capital adequacy ratio of 15.746% and pursued strict cost discipline throughout the period.