Quarterly Snap

Nov 16, 2011 (LBO) – Profits at Sri Lanka’s NDB Bank fell 20 percent to 620 million rupees in the September 2011 quarter from a year earlier, on weaker non-interest income, interim accounts showed Earnings per share for the quarter are 3.78 rupees. For the 9-months the bank is reporting earnings of 10.40 rupees a share on profits of 1.7 billion rupees.

Interest income rose 24 percent to 3.04 billion rupees and interest expenses rose at a faster 28.1 percent to 1.76 billion rupees, allowing the bank to grow net interest income at a slower 20 percent to 1.2 billion rupees.

From December to September group performing loans rose 32 percent to 93 billion rupees while non-performing loans fell 2 percent to 1.3 billion rupees.

There was a provision reversal of 39 million rupees, up from 15 million a year earlier.

NDB group fee income fell 30 percent to 719 million rupees due to weaker equity income. Operating expenses also rose 922 million rupees from 746 million. The bottom line was helped by lower financial value added tax which fell 43 percent to 132 million rupees.

The bank’s long term government securities portfolio fell 19 percent to 11.8 billion rupees, though its short te