Housing Woes

May 30, 2008 (LBO) – Sri Lanka’s Housing Development and Finance Corporation’s (HDFC’s) profits fel 90 percent in the March quarter amid rising interest expenses and a fall in other income, the group’s interim results showed. The group after tax profit dropped to 11.38 million rupees in the quarter ended March 2008, from a previous high of 113.80 million one year back.

However, the revenue for the period remained unchanged at 524.37 million rupees.

HDFC’s interest income increased only 1.84 percent to 516.42 million rupees but interest expense on deposits and other liabilities had increased 67.29 percent to 387.16 million, results released to the Colombo Stock Exchange showed.

As a result, net income from interest was down 53.13 percent to 129.26 million rupees.

Other income for the group dropped to 137.21 million from 289.95 million rupees and provisions for bad loans more than doubled to 14.56 million.

At the end of March quarter, HDFC’s total assets stood at 14 billion rupees.