May 12, 2014 (LBO) - Sri Lanka's Commercial Bank of Ceylon said profits rose 2 percent in the March 2014 quarter to 2,301 million rupees from a year earlier, with helped by higher net interest income and trading gains.
The group reported earnings of 2.71 rupees per share, in interim accounts filed with the Colombo Stock Exchange.
In the March 2014 quarter interest income rose 5.2 percent to 15.2 billion rupees, interest expenses fell in absolute terms by 2.2 percent to 8.67 billion rupees allowing net interest income to grow 17 percent to 6.5 billion rupees.
Fees and commission income rose 15 percent to 1.0 billion rupees.
Loans shrank 0.24 percent to 417 billion rupees by end March from December 2012.
Loan term loans grew to 107 billion rupees from 102 billion rupees but short term loans fell to 16 billion rupees from 21 billion, while personal loans, housing and leases edged marginally lower.
Pawning or gold-backed advances were down to 4.9 billion rupees from 6.9 billion rupees.
Loan loss provisions rose 123 percent to 1.1 billion rupees with a specific provision of 940 million rupees.
At stand alone bank level the gross non performing loan ratio (net of interest in suspense) rose to 4.4 percent to 3.8 billion rupees.
Sri Lanka is recovering from a balance of payments crisis triggered by a credit bubble involving loan-financed energy subsidies and prolonged low interest rates.
During the bubble, credit expands, and loan to deposit ratios fall with the central bank buying Treasuries from banks to print money, fire credit and imports to unsustainable levels, worsening loan to deposit ratios of banks.
After the bubble breaks, deposits grow, loans shrink and investments grow, allowing loan to deposit ratios to improve. Bad loans are also purged from the system and in the overall economy companies de-leverage and become stronger for the next phase of growth.
At Commercial Bank Other financial assets held for trading rose 138 percent to 7.1 billion rupees from 4.1 billion rupees. Financial investments available rose 10 percent to 148 billion rupees.
Deposits grew 4.6 percent to 472 billion rupees.
Group gross assets grew 6.8 percent to 648 billion rupees. Net assets grew edged 0.3 percent lower to 61.2 billion rupees.
At stand alone bank level, net assets were down 0.4 percent to 60.6 billion rupees.
The group reported earnings of 2.71 rupees per share, in interim accounts filed with the Colombo Stock Exchange.
In the March 2014 quarter interest income rose 5.2 percent to 15.2 billion rupees, interest expenses fell in absolute terms by 2.2 percent to 8.67 billion rupees allowing net interest income to grow 17 percent to 6.5 billion rupees.
Fees and commission income rose 15 percent to 1.0 billion rupees.
Loans shrank 0.24 percent to 417 billion rupees by end March from December 2012.
Loan term loans grew to 107 billion rupees from 102 billion rupees but short term loans fell to 16 billion rupees from 21 billion, while personal loans, housing and leases edged marginally lower.
Pawning or gold-backed advances were down to 4.9 billion rupees from 6.9 billion rupees.
Loan loss provisions rose 123 percent to 1.1 billion rupees with a specific provision of 940 million rupees.
At stand alone bank level the gross non performing loan ratio (net of interest in suspense) rose to 4.4 percent to 3.8 billion rupees.
Sri Lanka is recovering from a balance of payments crisis triggered by a credit bubble involving loan-financed energy subsidies and prolonged low interest rates.
During the bubble, credit expands, and loan to deposit ratios fall with the central bank buying Treasuries from banks to print money, fire credit and imports to unsustainable levels, worsening loan to deposit ratios of banks.
After the bubble breaks, deposits grow, loans shrink and investments grow, allowing loan to deposit ratios to improve. Bad loans are also purged from the system and in the overall economy companies de-leverage and become stronger for the next phase of growth.
At Commercial Bank Other financial assets held for trading rose 138 percent to 7.1 billion rupees from 4.1 billion rupees. Financial investments available rose 10 percent to 148 billion rupees.
Deposits grew 4.6 percent to 472 billion rupees.
Group gross assets grew 6.8 percent to 648 billion rupees. Net assets grew edged 0.3 percent lower to 61.2 billion rupees.
At stand alone bank level, net assets were down 0.4 percent to 60.6 billion rupees.
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