COLOMBO (EconomyNext) – Sri Lanka’s Seylan Bank said net profit rose 27 percent to 651 million rupees in the Marc 2015 quarter from a year ago supported by strong growth in interest income and foreign exchange gains.
Earnings per share were 1.89 rupees compared with 1.49 rupees in the March 2014 quarter, a stock exchange filing said.
Seylan estimated the group will have to pay 871 million rupees as a retrospective 25 percent tax proposed by the new administration. At company level it would be 867 million rupees. No provision had been made in the accounts as the tax has not passed into law yet.
Individual impairment for loans rose 27 percent to 129 million rupees while net exchange income rose 58 percent to 214 million rupees.
“Despite industry wide pressure on interest margins and growth, net interest income increased by 20 percent to 2.8 billion rupees for the three months ended 31st March 2015,” a company statement said.
Net fee and commission income increased by nine percent to 562 million rupees during the quarter from a year ago “showing a consolidation of the solid growth in core banking activities achieved by Seylan Bank over the past few years,” it said.
The bank’s loans portfolio grew to 155.2 billion rupees during the March 2015 quarter from 154.9 billion the year before but its deposit base shrank marginally to 185.0 billion rupees from 185.9 billion rupees.
The bank’s total capital adequacy ratio fell from 14.73 percent a year ago to 13.94 percent of risk weighted assets at the end of the March 2015 quarter, above the 10 percent minimum regulatory requirement.
Gross non-performing loans rose to 8.63 percent from 7.69 percent.