Apr 03, 2009 (LBO) – Sri Lanka’s People’s Bank group has reported net profits of 3,427 million rupees in 2008, 2.2 percent lower, while interest income grew 23.4 percent to 64.3 billion rupees, according to the annual report. At stand alone bank level net profits were up 13.9 percent to 2,704 million rupees, with group numbers dragged down by lower profit growth of People’s Leasing Company, a subsidiary, due to a tax charge, head of finance Y A Soza said.
People’s Bank group interest income grew 25.6 percent, interest expense 31.5 percent to 37.2 billion rupees while net interest income grew at a slower 16.5 percent.
Soza says re-pricing of the bank’s loan portfolio allowed lending margins to be maintained despite slow loan growth.
Loans and advances grew 8.8 percent to 237.5 billion rupees (9.0 percent to 239.8 billion at bank level). Customer deposits grew 7.5 percent to 323.0 billion rupees (7.8 percent to 324.4 at bank level).
Foreign exchange income grew 26.1 percent to 818.3 million rupees. Fees and commission income grew 25.2 percent to 3.6 billion rupees.
Provisions for bad loan losses grew 37.1 percent 1.7 billion rupees. Group non-performing loans (NPLs) grew to 19 billion rupees from 15.8