Sri Lanka Com Bank June quarter net up 23-pct

ECONOMYNEXT – Sri Lanka’s Commercial Bank said June 2016 quarter net profit rose 23% to Rs3.26 billion from a year ago.

Net interest income in the period rose 6% to Rs8 billion as interest income rose 21% to Rs19.5 billion while interest expenses rose 33% to Rs11.5 billion, interim results filed with the stock exchange showed.

Net fee and commission income rose 24% to Rs1.5 billion.

Earnings per share for the June quarter were Rs3.66.

EPS for the six months to June 2016 rose 24% to Rs7.32 with net profit up 26% to Rs6.5 billion.

Commercial Bank Managing Director Jegan Durairatnam said the six month period was one of low liquidity in the industry and reducing margins for the bank.

“The growth achieved despite these factors is attributed to the operational strength of the institution,” he said.

A statement said interest income improved by Rs 5.7 billion or 17.84% to Rs 37.5 billion helped by strong growth of the loan book in the six months.

But the higher cost of funds, particularly time deposits, resulted in interest expenses rising by 25.44% to Rs 21.4 billion in the six months under review, the bank said.
COLOMBO, August 12, 2016)
 

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