Apr 28, 2011 (LBO) – Sri Lanka’s Commercial Bank said March 2011 quarter net profit rose 86 percent to 2,064 million rupees from a year ago as it benefited from higher interest margins and lower taxation. Group interest income grew 5.38 percent 8.8 billion rupees while interest expenses fell 6.21 percent to 4.5 billion rupees, enabling net interest income to rise 21 percent to 4.3 billion rupees.
“Noteworthy volume increases in its performing loan book and in other principal banking activities in a period of relatively lower taxation enabled Commercial Bank to maintain its pace of growth in the first quarter of 2011,” a statement said.
According to interim results filed with the stock exchange, the bank’s non-interest income rose 18 percent to 1.5 billion rupees in March 2011 from a year ago.
Diluted earnings per share rose 86 percent to 5.44 rupees.
Total performing loans grew almost three percent to 219 billion rupees as at March 31, 2011 from the beginning of the year while total deposits grew almost six percent to 275 billion rupees.
The bank statement said interest income from loans grew by 864.1 million rupees or 15.69 percent to 6.371 billion, contributing to net in