Aug 14, 2012 (LBO) – Sri Lanka’s Commercial Bank of Ceylon reported profits of 2.469 billion rupees for the June 2012 quarter up 25 percent from a year earlier with profits boosted by foreign exchange gains. The group reported earnings of 2.96 rupees for the quarter. In the six months to June group earnings per share was 6.38 rupees per share on total profits of 5.319 billion rupees.
At bank level it reported return on 22.97 percent up from 20.76 percent in December 2012.
Commercial Bank’s interest income grew 37 percent to 12.59 billion rupees in the quarter and interest expenses grew at a faster 54.6 billion rupees to 7.2 billion rupees but the firm managed to grow net interest income by 19 percent to 5.39 billion rupees.
Total performing loans grew 12.72 percent to 301 billion rupees from December 2011 to June 2012.
Group provisions for bad debts rose to 576 million rupees from a write back of 19.1 million rupees a year earlier.
Total non-performing loans rose 14.4 percent to 18.1 billion rupees during the six months to June 2012.
At bank level gross non-performing loans rose to 3.66 percent of advances up from 3.43 percent in December.
Rising bad debts are also a natu