Nov 25, 2008 (LBO) – Profits at HSBC Sri Lanka has increased 94 percent to 1,664 million rupees in the first 9-months of 2008 despite large loan write-offs and rising interest expenses, published interim accounts showed. Interest income grew 22 percent to 14.1 billion rupees, interest expenses grew 31 percent to 6,450 million rupees while net interest income grew by a slower 15 percent to 7,726 million rupees.
Non-interest income grew to 2,111 million rupees from 1,669 million rupees with foreign exchange income showing losses of 158 million rupees, against losses of 320 million rupees.
HSBC also showed a 28 percent increase in interest from earning assets to 4.2 billion rupees. Its government securities holdings had increased to 34 billion rupees from 22 billion rupees in September 2007.
Net loans and advances grew to 88.4 billion rupees from 71.7 billion rupees, but deposits were flat at 90.6 billion rupees against 90.5 billion rupees a year earlier.
Foreign borrowings showed a steep increase to 22.6 billion rupees from 8.6 billion rupees a year earlier.
The bank’s earnings grew strongly despite a loan write-off of 928 million rupees, up from 505 million rupees a year ago. Total loans loss pro