Feb 27, 2012 (LBO) – Sri Lanka’s National Development Bank (NDB) said December 2011 quarter net profit shot up 69 percent to almost a billion rupees with a sharp increase seen in other income and lower tax costs. A note to the accounts said NDB provided 165 million rupees during the year ended December 31, 2011 as impairment of the bank’s investment in Maldives Finance Leasing Company for the fall in value of investment securities.
It said the bank has provided letters of comfort for borrowings undertaken by the company and that probable liability in the event the the company fails to meet its debt obligations amounts to 285 million rupees. NDB’s group net profit for the quarter was 999 million rupees, according to a stock exchange filing.
NDB’s interest income rose 38 percent to 3.3 billion rupees while interest expenses rose 40 percent to 1,979 million rupees with net interest income up 35 percent to 1.3 billion rupees during the quarter.
Other income in the quarter rose 185 percent to 922 million rupees from a year ago.
In the year ended December 31, 2011, NDB group’s earnings per share rose to 16.48 rupees with net profit up 29 percent to 2.7 billion rupees.
Annual interest income r