Nov 03, 2008 (LBO) – Sri Lanka’s Nations Trust Bank (NTB) said September quarter net profit fell 15 percent to 136 million rupees from a year ago despite strong growth in net interest income and non-interest income. NTB’s non-interest expenses in the September quarter also rose sharply amid high inflation and rising staff numbers.
Personnel costs rose by almost half to 290 million rupees. Gross income rose 89 percent to 3.61 billion rupees at group level, according to interim results released by the bank.
Group net profit for the nine months ending September 30 were up 19 percent to 421 million rupees.
At bank level, interest income for the September quarter rose 43 percent to 2.64 billion rupees while interest expenses rose 46 percent to 1.97 billion rupees, with net interest income up 34 percent to 671 million rupees.
Foreign exchange income shot up 82 percent to 117 million rupees while other income rose 94 percent to 407 million rupees.
NTB reported a sharp increase in specific provisions in the September quarter, continuing a trend from earlier in the year, with asset quality worsening, analysts said.
Total provisioning for bad loans rose 202 percent to 104 million rupees with s