Feb 28, 2012 (LBO) – Sri Lanka’s Commercial Bank said December 2011 quarter net profit rose 12 percent to almost two billion rupees from a year ago with sharp gains in foreign exchange income while interest income fell. A stock exchange filing said interest income grew 10 percent to 10 billion rupees and interest expenses rose at a faster 23 percent 5.5 billion to resulting in net interest income falling two percent to 4.57 billion rupees.
Non-interest income in the quarter rose 28 percent to two billion rupees mainly driven by an 89 percent increase in foreign exchange income to 862 million rupees.
The bank made a provision of 716 million rupees for bad debt in the December quarter compared with a reversal of 186 million the year before.
Diluted earnings per share for the December quarter were 2.45 rupees.
For the year ending December 31, 2011, Commercial Bank’s diluted EPS was 9.97 rupees with net profit up 47 percent to eight billion rupees.
Annual interest income grew eight percent to 37.6 billion rupees and interest expenses rose seven percent to 19.6 billion enabling net interest income to rise almost 10 percent to 17.97 billion rupees.
“Interest expenses rose mainly