Mortgage Profits

Nov 20, 2011 (LBO) – Profits at Sri Lanka’s HDBC Bank, a mortgage lender fell 52 percent to 8.1 million rupees in the September 2011 quarter from a year earlier, despite better margins, due to lower fee income, interim accounts showed. The firm reported earnings of 1.27 rupees per share for the quarter. It reported ear and 30.76 rupees per share for the nine months, on profits of 199.0 million rupees.

Interest income rose 4 percent to 462 million rupees in the quarter, and interest expenses rose only 0.3 percent to 329 million rupees allowing the bank to grow net interest income 12 percent to 133 million rupees.

HDBC Bank’s performing loans rose 10 percent to 11.0 billion rupees from December 2010 to September 2011. Non-performing loans rose at a faster 17 percent to 3.4 billion rupees.

Loan loss provisions were a reversal of 13.8 million rupees.

But fee income fell 52 percent to 23 million rupees.

The bank’s deposits rose 26 percent to 10.7 billion rupees. Gross assets rose 14 percent to 17.4 billion rupees and net assets rose 9 percent to 1.96 billion rupees.