Growth Path

Aug 01, 2014 (LBO) – Profits at Sri Lanka’s National Development Bank rose 5.6 percent from a year earlier to 843 million rupees, helped by higher net interest income, amid falling interest expenses, interim accounts showed. The bank reported earnings of 10.50 rupees per share. In the half year to June the group reported earnings of 25.40 rupees a share.

The bank said interest earnings fell 0.9 percent to 5.2 billion rupees, and interest expenses fell at a faster 9.5 percent to 3.2 billion rupees helping net interest income grow 16 percent to 2.0 billion rupees.

In the six months to June loans grew 12 percent to 153 billion rupees and financial investments – loans and receivables rose to 37 billion rupees from 16.7 billion rupees.

Provisions for bad loans fell 4.4 percent to 94.3 million rupees in the quarter from a year earlier.

The gross non performing loan ratio rose to 1.48 percent from 1.21 percent.

Trading income rose 8.9 percent to 492 million rupees but fee income was down 9 percent to 569 million rupees.

Gross assets rose 16 percent to 239 billion rupees in the six months and net assets rose 4 percent to 26.4 billion rupees.

Capital adequacy fell to 19.14 percent in June from 21