Fee Hit

May 28, 2009 (LBO) – Sri Lanka’s Citibank unit’s March 2009 quarter profits were down 41.7 percent to 230.6 million rupees on sharply lower fee income, though the net interest margins were up, published accounts showed. Interest income was up 14.5 percent to 756.8 million rupees, while interest expense was down 12.1 percent to 208.0 million rupees, allowing net interest income to accelerate 29.3 percent to 548.7 million rupees.

Fee income fell 54 percent to 269.5 million rupees. Last year’s fees were boosted from oil derivatives sold to state-run Ceylon Petroleum Corporation. The deals are now under arbitration after CPC stopped payments.

Citibank showed 22.6 billion rupees as non-performing loans, which includes dues from CPC.

Loan loss provisions were only 23.1 million rupees for the period, up from 11.6 million last year.

Total performing loans fell to 14.1 billion rupees from 15.7 billion rupees and deposits fell to 11.1 billion rupees from 12.2 billion rupees, from December to March.

Gross assets of the bank also shrank to 49.7 billion rupees from 50.4 billion. Net assets however were up, at 7.4 billion rupees from 7.1 billion rupees in December.