ECONOMYNEXT – Profits at Sri Lanka’s Commercial Bank of Ceylon grew 19.3 percent to 2.64 billion rupees in the June 2015 quarter, helped by lower loan loss provisions, interim accounts show.
The group reported earnings of 3.01 rupees per share for the quarter. In the six months to June, the group reported earnings of 5.92 rupees on total profits of 5.1 billion rupees, up 14 percent from a year earlier. The stock closed at 173.30 rupees Wednesday.
Fees and commission income grew 4 percent to 1.2 billion rupees.
Interest income grew 3.1 percent to 16.2 billion rupees, interest expenses grew at a slower 0.3 percent to .6 billion rupees and net interest income 6.6 percent to 75 billion rupees.
Loans grew 2.9 percent to 513 billion rupees in the six months to June.
Loan loss provisions were down 28 percent to 1.34 billion rupees.
The bank also brought down its financial investments available for sale down to 206 billion rupees from 214 billion rupees in December.
In the March quarter its bond portfolio took a hit of 4.7 billion rupees as interest rates picked up. In the June quarter however it recovered 1.7 billion rupees bringing down the book loss to 2.9 billion rupees, when interest rates eased.
Rates however are picking up again.