Sri Lanka’s Commercial Bank Sept net up on operating income, lower bad loan provisions

ECONOMYNEXT- Net profits at Sri Lanka’s largest listed lender Commercial Bank for the September quarter grew 21.8 percent from a year earlier to 4.8 billion rupees with lower bad loan provisioning, interim financials showed.

The group posted 4.69 rupees in earnings per share for the quarter and 11.09 rupees in earnings per share for the first 9 months of 2019. The bank share closed at 99 rupees on Thursday.

Interest income grew 8.82 percent from a year earlier to 32.7 billion rupees in the September quarter, while interest expenses grew at a faster 9.95 percent to 20.5 billion rupees and net interest income grew at a slower 6.98 percent to 12.3 billion rupees.

Fee and commission income grew 9.9 percent to 3.4 billion rupees. Net losses from trading grew to 1.4 billion rupees from 133.1 million rupees a year earlier.

Net other operating income grew 27.24 percent to 3.88 billion rupees.

Provisioning for bad loans fell 18.06 percent to 3 billion rupees.

Bank-level non performing loans were up to 5.09 percent at end-September from 3.24 percent at end-December.

The group loan book fell marginally to 865.1 billion rupees over the nine months.

Deposits meanwhile grew 5.31 percent to 1 trillion rupees.

The group asset base grew 3.82 percent to 1.37 trillion rupees while net assets per share was 126.98 rupees, up from 118.13 rupees.

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The bank’s return on assets fell to 1.64 percent from 2.09 percent, while return on equity was 12.12 percent, down from 15.56 percent.

Group core capital to risk weighted assets ratio was 12.291 percent, up from 11.431 percent against a minimum requirement of 10 percent.

The total capital adequacy ratio was at 16.152 percent, up from 15.623 percent against a required 14 percent. (Colombo/Nov15/2019)

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