Sri Lanka's Pan Asia Bank profits down 5-pct in June
Aug 11, 2019 14:40 PM GMT+0530 | 0 Comment(s)
ECONOMYNEXT - Profits at Sri Lanka's Pan Asia Bank fell 5 percent to 481 million rupees in the June 2019 quarter from a year earlier, amid falling net interest income, higher loan loss provisions and taxes, interim accounts showed.
The bank reported earnings of 1.09 rupees per share for the quarter. In the six month to June the bank reported earnings of 1.70 rupees per share on total profits of 753 million rupees which was down 8 percent.
Interest income grew 4 percent to 4.7 billion rupees and interest expense grew at a faster 8 percent to 3.3 billion rupee, shrinking net interest income 5 percent to 1.4 billion rupees.
Loan loss provisions rose to 457 million rupees in the June quarter from 348 million rupees a year earlier.
The gross non-performing loan ration increased from 5.44 percent to 6.78 percent from December to June.
Loans and advances contracted 4 percent to 104 billion rupees from December to June. Securities contracted 1 percent to 33.6 billion rupees.
Sri Lanka is recovering from monetary instability in 2018, when the central bank printed money to keep rates artificially down when the economy and credit growth recovered, triggering collapses of the currency.
A political crisis in October worsened capital flight adding to instability.
At Pan Asia Bank deposits contracted 1 percent to 117 billion rupees. Borrowings from debt securities contracted 24 percent to 10.1 billion rupees.
Profits were helped by gains from trading grew 121 percent to 222 million rupees.
Net fee and commission income was flat at 368 million rupees.
Financial VAT and debt repayment levy was up 26 percent to 198 million rupees. Income tax was up 55 percent to 157 million rupees.
Gross assets contracted 2 percent to 150.2 billion rupees.
Net assets grew 7 percent 12.0 billion rupees. The total capital adequacy ratio improved to 14.2 percent by June from 13.32 in December. (Colombo/Aug11/2019)