July 30, 2013 (LBO) – Profits at Sri Lanka’s Seylan Bank fell 13 percent to 484 million rupees in the March 2013 quarter amid rising interest costs, interim accounts showed. The gross non-performing loan ratio (net of interest in suspense) fell to 11.15 percent from 12.99 percent at bank level during the period.
The interest margin narrowed to 4.47 percent from 5.16 percent and return on average assets fell to 1.53 percent from 1.82 percent.
Interest income rose 15.3 percent to 6.0 billion rupees in the quarter but interest expenses rose at a faster 37 percent to 3.9 billion rupees, shrinking net interest income 10.3 percent to 2.1 billion rupees.
Fee income rose 34 percent to 534 million rupees. The bank said it benefitted from a increased focus on trade finance and fee generating products and services.
Investment gains and forex income fell 33 percent to 224 million rupees, with fair valued gains falling to 1