Dec 01, 2008 (LBO) – Sri Lanka’s Standard Chartered Bank unit has reported a net profit increase of 55 percent to 1,803 million rupees in the 9-months ended September 2008, while revenues climbed 29 percent to 7,338 million rupees. The bank had gross assets of 78.9 billion rupees and net assets of 12.7 billion rupees at the end of September 2008.
Interest expense also rose 32 percent to 3,910 million rupees while net interest income was only slightly behind, growing 27 percent to 3,428 million rupees.
Fee income, grew 104 percent with forex income growing 92 percent to 1,409 million rupees and other income growing 121 percent to 1,100 million rupees.
Fee income includes earnings from hedging transactions. Standard Chartered had provided a 300,000 barrel hedge contract to Sri Lanka’s state-run Ceylon Petroleum Corporation, which is now being probed by the Central Bank, on a court order.
The deals ran into controversy for not having a knockout on the downside after oil prices collapsed. The bank said it welcomed a probe.
Provisions for non-performing loans grew 38 percent to 206 million rupees.
Standard Chartered’s performing loans and advances grew 20 percent to 52.5 billion rupees. Non-performing lo