Sri Lanka's Commercial Bank net up 25-pct in Dec quarter
Feb 23, 2017 06:15 AM GMT+0530 | 0 Comment(s)
ECONOMYNEXT - Profits at Sri Lanka's Commercial Bank of Ceylon rose 25 percent from a year earlier to Rs4.3 billion in the December 2016 quarter, helped by a provision reversal amid an Rs870 million unrealised bond loss, interim accounts showed.
The group reported earnings of Rs4.83 per share for the quarter. For the year to December, Commercial Bank reported earnings of Rs16.24.
Interest income rose 29 percent to Rs22.7 billion, but interest expenses rose at a faster 48 percent to Rs14.0 billion, allowing the bank slowing net interest income at 8.1 percent to Rs8.6 billion.
The bank has a government bond portfolio of Rs204.2 billion, mostly acquired in 2015. Over Rs63 billion of bonds had been transferred from its available-for-sale portfolio to a held-to-maturity portfolio up from Rs37 billion in September.
The bank showed an Rs865 million unrealised loss on bonds for the quarter. The full-year number came down to Rs3.2 billion from Rs6.69 billion.
In the year to December, the group grew its loan book 21 percent to Rs620 billion.
Profits were boosted by an Rs885 million reversal in general loan loss reversal, which resulted in a net Rs237 million reversal compared to a Rs987 million provision last year.
Total assets grew 15 percent to Rs1,020 billion, which were financed with deposits that grew 19 percent to Rs743 billion.
Net assets grew 12 percent to Rs79.8 billion.