Mar 03, 2011 (LBO) – Sri Lanka’s state-run Bank of Ceylon group said profits for the December 2010 quarter grew 77.5 percent to 2,107 million rupees and the full year net was up 102 percent to 3,299 million amid high loan growth and wider margins. The group also contained operating costs with non-interest expenses growing 5.2 percent to 17.8 billion rupees and staff costs staying flat.
Bank of Ceylon’s deposits had grown 29.8 percent to 533 billion rupees over the year allowing it to expand lending.
Bank of Ceylon saw steep growth in loans as well as holdings of government securities. Its long term portfolio of government securities had risen 279 percent to 72 billion rupees and the long term portfolio rose 2.5 percent to 141 billion rupees.
Group performing advances grew 42 percent to 379 billion rupees. Non-performing loans fell 15.8 percent in absolute terms to 13.7 billion rupees. It made 1.6 billion rupees in provision but recoveries of 1.3 billion reduced loan losses to 331 million rupees for the year.
Its gross non performing loans ratio had fallen to 3.49 percent in 2010 from 5.75 percent in 2009. Amid higher loan growth total capital adequacy had slipped to 14.03 percent from 15.13 percent.
Return on assets (pre-