May 10, 2011 (LBO) – Sri Lanka’s Union Bank said net profit rose 212 percent to 60 million rupees in the March 2011 quarter from a year ago with sharp gains in both interest and non-interest income. Interest income rose 7.5 percent to 458 million rupees while interest expenses fell 22 percent to 221 million enabling net interest income to rise 66 percent to 237 million rupees, according to interim accounts filed with the stock exchange.
Earnings per share for the quarter were 18 cents against 13 cents the year before.
The bank’s interest margin rose to 4.93 percent from 3.90 percent a year ago.
Non-interest income rose 48 percent to 79 million rupees with sharp gains in both foreign exchange and other income.
Provisions for bad loans rose 121 percent to 4.6 million rupees.
Total loans grew 18 percent to 10.7 billion rupees from the beginning of the year while total deposits rose 6.6 percent to 14 billion rupees.
Total asset base of the bank expanded by 9.5 percent to 20.2 billion at the end of the quarter.