Oct 31, 2012 (LBO) – Net profits of Sri Lanka’s Union Bank of Colombo rose 7.46 percent to 79.7 million rupees in the September 2012 quarter from a year earlier, with interest margins narrowing, interim accounts showed. The bank made 20 cents of earnings per share in the quarter based on 349 million shares in issue. In the nine months to September the bank made earnings of 49 cents per share on total profits of 173 million rupees which fell 12.8 percent from a year earlier.
Return on assets after tax fell to 0.91 percent by end September 2012 from 1.23 percent a year earlier.
In the September quarter interest income rose 70 percent to 916 million rupees while interest expenses rose at a faster 113 percent to 600 million rupees but the bank still managed to grow net interest income 24 percent to 316 million rupees.
Interest margin fell to 4.18 percent from 4.73 percent.
Fee income rose 9.1 percent to 120 million rupees with forex income doubling to 26.8 million rupees from 13 million rupees a year earlier.
Group performing loans grew 19.7 percent to 19.6 billion rupees in the nine months to December. The regulator has set an annual credit growth ceiling of 18 percent for locally raised deposits