Aug 13, 2009 (LBO) – Sri Lanka’s Commercial Bank said group profits rose 2.7 percent to 1,122.1 million rupees in the June 2009 quarter from a year earlier, while revenues rose 2.0 percent to 11.0 billion. Interest income fell 1.3 percent to 8.96 billion, interest expenses rose 1.8 percent to 6.12 billion rupees, causing interest income to fall 7.5 percent to 2.84 billion rupees.
Interest income from loans and advances fell 3.4 percent to 6.87 billion rupees, while interest from other earning assets, which includes government treasuries, rose 6.07 percent to 2.09 billion rupees.
Fee income rose 18.4 percent to 1.92 billion rupees, with forex income surging 69.2 percent to 931.6 million in the quarter.
Non-interest expense also grew 17.8 percent to 2.07 billion rupees. The bank said salary costs rose following a wage hike granted under a collective agreement that came into effect from January 2009.
Provisions for bad loans fell 37.0 percent to 321.9 million rupees, after a general provision was reversed as total loans and advances fell.
The bank’s total performing loans and advances fell 11.08 percent to 156.09 billion in June from 175.53 billion in Decem