Consolidation

Oct 26, 2012 (LBO) – Sri Lanka’s Seylan Bank has reported profits of 589 million rupees for the September 2012 quarter up 48.5 percent from a year earlier, helped by lower investment provisions, interim accounts showed. The bank reported earnings of 1.74 rupees per share for the quarter. In the nine months to September the firm reported profits of 1.6 billion rupees.

In the September quarter interest income rose 45.4 percent to 4.53 billion rupees and interest expenses grew at a faster 61 percent to 2.7 billion rupees amid a rising interest environment.

The group grew net interest income by a marginal 5.44 percent to 2.14 billion rupees.

Fee income rose 8.1 percent to 595 million rupees with forex income falling 0.8 percent to 117 million rupees and unspecified other income rising 10 percent to 477 million rupees.

The bank managed to trim non-interest expenses 3 percent to 1.7 million rupees from a year earlier.

In the nine months to September performing loans grew 12.8 percent to 97.4 billion rupees. The regulator has set an 18 percent ceiling in credit growth for 2012.

Non-performing loans fell 3.5 percent to 20.9 billion rupees.

The bank provided 119 million rupees for non-perfor