Sri Lanka Com Bank March quarter net up 29-pct
ECONOMYNEXT – Sri Lanka’s Commercial Bank said group net profit for the March 2016 quarter grew by 28.7 percent to almost Rs3.3 billion from a year ago.
Earnings per share for the three months was Rs3.72 rupees, a stock exchange filing said.
The bank, in a statement, attributed the performance to “notable improvements in business volumes and reduced growth in charges".
Rs101 billion year-on-year growth in its loan book resulted in interest income increasing Rs2.4 billion or 15.45 percent over the quarter to Rs18 billion at bank level.
“Net interest income for the three months was Rs8.1 billion, growth of 12.17 percent. The lower growth rate was due to an 18.27 percent increase in interest expenses (Rs9.9 billion), consequent to a rise in rates,” the statement said.
Commercial Bank said it achieved a “noteworthy reduction” of 25.17 percent in total impairment charges to Rs995 million through a reversal in the provision for individual impairment due to an improvement in non-performing loans.
Total assets grew Rs45 billion or 5.09 percent from 31st December 2015 to Rs924 billion in 31 March 2016.
Loans grew to Rs537 billion from Rs508 billion, while deposits went up Rs28.9 billion to Rs653 billion.
Deposit growth over the three months averaged Rs9.65 billion per month.
“This is a solid start to the new year, particularly when viewed against prevailing market conditions,” Commercial Bank Chairman Dharma Dheerasinghe said.
“The Bank’s ability to increase volumes in all key areas of business, thereby minimising the impact of a drop in gains from bond trading, indicates an operational strength that augurs well for the rest of the year.”
Commercial Bank Managing Director Jegan Durairatnam said projections based on steady growth of its asset base indicated that the bank is poised to record significant improvements in all areas in the current year.
Commercial Bank said net fees and commissions improved 16.19 percent to Rs1.5 billion and total other income grew 17.87 percent to Rs1.4 billion, the latter as a result of higher net gains from trading, mark to market gains and exchange gains.
However, other income including gains from bond trading declined 81.36 percent or Rs1.47 billion compared to the previous year’s figure.
(COLOMBO, May 11 2016)