Wednesday 16 May 2018

Sri Lanka's Commercial Bank net up 13.64-pct in March 2018

ECONOMYNEXT - Profits at Sri Lanka's Commercial Bank of Ceylon Plc rose 13.6 percent to 4,340 million rupees, helped by an expanding loan book, despite a higher loan loss charges, interim accounts showed.

The group reported earnings of 4.32 rupees per share for the quarter. The stock closed at 133.50 rupees, up 40 cents, on Tuesday.

Group net interest income rose 33 percent to 11.72 billion rupees in the quarter, with interest income up 20.5 percent to 28.8 billion rupees and interest expense rising at a slower 12.9 percent to 17.1 billion rupees.

Loans grew 5.73 percent to 784 billion rupees from December to March and financial instruments available for fell 9 percent to 140 billion rupees.

Loan loss provisions rose to 1.62 billion rupees from 251 million rupees with general provisions rising to 1.19 billion rupees from 203 million rupees.

Group capital adequacy fell to 11.32 percent (bank 11.31 percent) from 12.12 percent (bank 11.1 percent).

Commercial Bank said it was following an option under Sri Lanka Financial Reporting Standard 39 to declare the effect of the new SLFRS 9 had it been followed would increase loan loss provisions by 25 to 35 percent.

The bank's net assets would be 4 to 5 percent lower and the total capital adequacy ratio would be down by 50 to 70 basis points.

The bank said it was "is in the process of validating the impact of migration to SLFRS 9 as at Mach 31, 2018."

Fee income grew 18.7 percent to 2.44 billion rupees.

Unspecified other income grew 440 percent to 459 million rupees from 84.5 million a year earlier.

Gross assets grew 6.4 percent to 1,230 million rupees and net assets grew 1.2 percent to 110.26 billion rupees.

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