May 08, 2014 (LBO) – Sri Lanka’s Nations Trust Bank said profits rose 10 percent in the March 2014 quarter from a year earlier to 549 million rupees despite providing for losses on gold backed loans. The group reported earnings of 2.38 rupees per share for the quarter in interim accounts filed with the Colombo Stock Exchange.
Interest income was flat at 4.3 billion rupees in the quarter, but interest expenses fell 14 percent to 2.28 billion rupees, allowing net interest expenses to go up 22 percent to 2.0 billion rupees.
“Higher yielding asset portfolios grew moderately to partly off-set declining commercial loan interest rates whilst cost of liabilities reduced further with the re-pricing of shorter tenor deposits,” the bank told shareholders.
“Continuous efforts to grow low cost deposits improved the deposit mix which assisted in reducing the cost of liabilities.”
Loans to customers grew 2.0 percent to 83.6 billion rupees in the March quarter.
“The low interest rate operating environment brought many challenges on our corporate portfolio with spreads thinning considerably coupled with a lackluster demand for new credit,” NTB said.
“Leasing and credit card portfolios