Sri Lanka’s Com Bank December profit falls on interest costs, bad loans
ECONOMYNEXT- Sri Lanka’s Commercial Bank said net profits for the December 2018 quarter fell 16.13 percent from a year earlier to 4.1 billion rupees due to higher interest expenses and provisioning for bad loans.
Earnings per share for the quarter were 4.05 rupees. The firm’s share fell 1.10 rupees to 106 rupees at end of trading on Monday.
For the 2018 financial year, Commercial Bank’s net profits were 17.7 billion rupees, up 6.80 percent from 2017, while earnings per share was 17.55 rupees.
The bank’s interest income for the December quarter grew 4.68 percent from a year earlier to 28.9 billion rupees, while interest expenses were up 16.52 percent to 19.5 billion rupees and net interest income fell 13.43 percent to 9.5 billion rupees.
Net losses from trading were 1.6 billion rupees during the quarter, widening from a 116.9 million rupee loss a year earlier.
Provisioning for bad loans grew 322.25 percent to 1.4 billion rupees.
The bank’s loan book grew 16.77 percent to 861.1 billion rupees as at end-December, from a year earlier.
Bad loans at the bank-level rose to 3.24 percent in December from 1.88 percent a year earlier.
Deposits from customers grew 15.63 percent to 983 billion rupees.
The asset base grew 14 percent to 1.3 trillion rupees, while net assets per share were up 8.94 percent to 117.15 rupees.
Commercial Bank’s Tier 1 capital ratio fell to 11.434 percent from 12.122 percent a year earlier, against a regulatory minimum of 8.875 percent.
Total capital ratio fell marginally to 15.626 percent from 15.701 percent against a regulatory minimum of 12.875 percent. (Colombo/Feb25/2019-SB)