Oct 27, 2011 (LBO) – Net profits of Sri Lanka’s PABC Bank for the September 2011 quarter rose 62 percent to 208.7 million rupees from a year earlier, helped by stronger net interest income and a lower tax rate, interim accounts showed. The bank reported earnings of 71 cents for the quarter and 2.08 for the nine months ending September.
Interest income rose 52 percent to 1.17 billion rupees and interest income rose at a faster 70 percent to 615.2 million rupees, but the bank also grew net interest income 36 percent to 561 million rupees.
Loan loss provisions were a net write-back of 7.5 million rupees for the quarter against a 9.5 million provision a year earlier.
The banks performing loans increased to 27.4 billion rupees in September from 20.0 billion rupees in December 2010. Non-performing loans also increased to 2.5 billion rupees from 2.1 billion.
Fee income fell 14 percent to 171 million rupees.
Operating expenses rose 45 percent to 407 million rupees with staff costs rising 45 percent to 167 million rupees.
Pre-tax profits rose by a marginal 3 percent to 332 million rupees, but the tax bill fell 34 percent to 76.6 million rupees from 115 million.
The bank’s deposits had grown to 32.9 billion