ECONOMYNEXT - Profits at Sri Lanka's largest bank, state controlled Bank of Ceylon, fell 39 percent from a year earlier to 2.7 billion rupees in the June 2018 quarter, on falling interest margins as deposits grew faster than its loan book and higher bad loans provisioning, interim accounts showed.
Earnings in the six months to end June fell 28 percent to 7.5 billion rupees on net interest income growing 4 percent to 31 billion rupees.
In the June quarter, the bank reported net interest income growth of 1.7 percent to 15.9 billion rupees, as interest income increased 12 percent to 48.5 billion rupees and interest expenses grew a faster 17.7 percent to 32.7 billion rupees.
Interest margins had also contracted to 3.07 percent in the quarter, compared to 3.34 percent a year earlier.
Bank of Ceylon's loan book grew 8.7 percent from a year earlier to 1.24 trillion rupees at end June 2018, while deposits grew a faster 16 percent to 1.63 trillion rupees.
Bad loans provisioning increased 12.3 percent to 5 billion rupees.
Net fee and commission income grew 46 percent to 2.1 billion rupees.
Losses from trading in financial assets fell 57 percent to 488 million rupees.
Operating expenses grew 27 percent to 9.2 billion rupees which includes staff costs amounting to 5.4 billion rupees, a moderate 1.3 percent from a year earlier.
Total assets of the bank rose 11 percent from six months earlier to 2 trillion rupees at end June 2018, while shareholder funds increased 12.5 percent to 126.5 billion rupees.
Tier 1 capital adequacy under Basel III was 10.09 percent, higher than the 8.875 regulatory minimum, but lower than what it was six months earlier at 10.87 percent.
Total capital adequacy was 13.77 percent, higher than the 12.875 regulatory minimum, but was lower than 14.49 percent the bank had achieved six months earlier.
Earnings in the six months to end June fell 28 percent to 7.5 billion rupees on net interest income growing 4 percent to 31 billion rupees.
In the June quarter, the bank reported net interest income growth of 1.7 percent to 15.9 billion rupees, as interest income increased 12 percent to 48.5 billion rupees and interest expenses grew a faster 17.7 percent to 32.7 billion rupees.
Interest margins had also contracted to 3.07 percent in the quarter, compared to 3.34 percent a year earlier.
Bank of Ceylon's loan book grew 8.7 percent from a year earlier to 1.24 trillion rupees at end June 2018, while deposits grew a faster 16 percent to 1.63 trillion rupees.
Bad loans provisioning increased 12.3 percent to 5 billion rupees.
Net fee and commission income grew 46 percent to 2.1 billion rupees.
Losses from trading in financial assets fell 57 percent to 488 million rupees.
Operating expenses grew 27 percent to 9.2 billion rupees which includes staff costs amounting to 5.4 billion rupees, a moderate 1.3 percent from a year earlier.
Total assets of the bank rose 11 percent from six months earlier to 2 trillion rupees at end June 2018, while shareholder funds increased 12.5 percent to 126.5 billion rupees.
Tier 1 capital adequacy under Basel III was 10.09 percent, higher than the 8.875 regulatory minimum, but lower than what it was six months earlier at 10.87 percent.
Total capital adequacy was 13.77 percent, higher than the 12.875 regulatory minimum, but was lower than 14.49 percent the bank had achieved six months earlier.
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