Mortgage Gains

July 23, 2014 (LBO) – Profits at Sri Lanka’s HDFC Bank, a mortgage lender, surged over five fold to 82 million rupees in the June 2014 quarter from a year earlier as borrowing costs fell, interim accounts showed. Defaulted loans are periodically settled against member balances.

The bank reported earnings of 1.28 rupees per share for the quarter. For the six months to June the bank reported earnings of 2.86 rupees per share on total profits of 185 million rupees, up from 50.4 million rupees a year earlier.

The stock last traded at 43 rupees up 70 cents.

HDFC said interest income rose 27 percent to 1.08 billion rupees while interest expenses fell 1.0 percent to 600.9 million rupees allowing net interest income to grow 95 percent to 488 million rupees.

The bank provided 68 million rupees for loan losses, up 439 percent from a year earlier.

HDFC said loans grew 8.9 percent to 21.4 billion rupees during the past six months with total assets growing to 30.4 billion rupees from 27.5 billion rupees in December.

Net assets rose to 2.74 billion rupees from 2.57 billion rupees in December.

Capital adequacy fell to 16.0 percent of risk weighted assets in June from 18.2 percent in Decemb