July 26, 2012 (LBO) – Sri Lanka’s PABC Bank has reported profits of 159 million rupees in the June 2012 down 24 percent from a year earlier, amid a steep rise interest expenses, interim accounts showed. Non-interest expenses also rose 49 percent to 533 million rupees.
“The overhead increase is mainly due to the branch expansion and related activities that were undertaken during the last 18 months,” PABC said in a statement.
“This strategic expansion drive assists the bank in establishing its presence in most parts of the country with 71 branches island wide.”
It had opened 23 branches in 2011 and 7 in 2012.
The bank had grown deposits 17 percent to 41.4 billion rupees.
PABC’s net assets edged up 2 percent to 3.69 billion rupees and gross assets grew 12 percent to 52.4 billion rupees. The firm reported earnings of 54 cents for the quarter. For the six months to June the bank reported earnings 1.21 rupees per share on profits of 356 million rupees which fell 12 percent from a year earlier.
In the June quarter interest income rose 57 percent to 1.63 billion rupees but interest expenses rose at a faster 98 percent to 1,033 million rupees though the bank grew net interest inco