Slow Down

May 28, 2008 (LBO) – Sri Lanka’s Seylan Bank March quarter profits fell 36 percent to 135 million rupees amid flat loan growth as high interest rates made it difficult for companies and individuals to borrow. The bank’s interest income grew 31 percent to almost five billion rupees but interest costs rose 48 percent to 3.3 billion rupees, with net interest income up 8.5 percent to 1.7 billion rupees.

The total performing loans at bank level as at March 31, 2008 remained flat at almost 90 billion rupees and deposit grew 2.5 percent to 114.6 billion rupees, according to a stock exchange filing.

At group level performing loans and advances were flat at 92 billion rupees.

Foreign exchange income was down 20 percent to 142 million rupees.

The bank made an 80 million rupees provision for bad loans in the current quarter.

Total bank assets were up almost three percent to 149 billion rupees.