Slower Growth

Nov 05, 2012 (LBO) – Profits at Sri Lanka’s Pan Asia Bank fell 6 percent to 195 million rupees in the September 2012 quarter from a year earlier, amid flat net interest income growth, interim accounts showed. Deposits grew 18 percent to 41.8 billion rupees.

Bad loans grew 7 percent to 2.7 billion rupees over the nine months. The gross non performing loan ratio rose slightly to 3.66 percent from 3.58 percent.

There was a 4.5 million rupee write back of loan loss provisions during the quarter, down from 7.5 million rupees a year earlier.

Gross assets grew 10 percent to 51.5 billion rupees and net assets grew 7 percent to 3.8 billion rupees.

Capital adequacy was steady at 14.02 percent by end September from 14.04 percent at the beginning of the year.

Update II The bank reported earnings of 66 cents per share. For the nine months to September the bank reported earnings of 1.87 rupees on profits of 551 million rupees down 10 percent from a year earlier.

The bank said return on equity fell to 20.0 percent from 25.55 percent in December and return on assets (after tax) fell to 1.46 percent in the current period from 2.06 percent in December 2011.

Interest income rose 49 p