Capital Gains

Aug 27, 2008 (LBO) - Sri Lanka's DFFC Bank net profit for the June quarter rose 30 percent to 515 million rupees from 395 million rupees a year ago, helped by capital gains from the sale of shares, the bank's interim results show.

Profit for the June quarter included a one-off gain of 108 million (after financial services VAT) arising from the sale of shares held as an investment, Fonseka said.

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Group total income rose 19.2 percent to 3.1 billion rupees from 2.6 billion.

At bank level, interest income rose 3.

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4 percent to 2.10 billion rupees from 2.03 billion rupees while interest expenses fell 3.
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4 percent to 1.42 billion rupees from 1.47 billion rupees.

The bank's net interest income rose 22.

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3 percent to 681 million rupees from 557 million rupees.
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The bank's total provisioning for bad loans almost doubled to 127 million rupees from 64 million rupees.

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Dividend income rose to 186 million rupees in the June quarter from 143 million rupees a year ago.

Fonseka said that the financial services value added tax and income tax expense was 747 million rupees, being 58 percent of gross profit.

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