Steady State

Nov 28, 2008 (LBO) – Sri Lanka’s National Development Bank’s net profits for the September 2008 quarter rose 18 percent to 351 million rupees, interim accounts showed, while revenues climbed 20 percent to 3,169 million rupees.

During the 9-months to September, performing loans and advances had growth 15 percent to 57.2 billion rupees.

Total deposits grew 12 percent to 28.6 billion rupees from 25.6 billion in the period. Other wholesale borrowing also rose 12 percent to 38.1 billion rupees.

Gross assets were up 9.5 percent to 83.4 billion rupees. In July it had bought a 23.8 percent of stake in Capital Development and Investment Company, owned by state-run Bank of Ceylon for 1.15 billion rupees.

It had previously owned 75.8 percent of CDIC which has a stake in public listed Eagle Insurance.

NDB’s effective holding in Eagle had increased to 41.1 percent from 32.4 percent after the deal. Interest expense rose sharply by 32 percent to 1,810 million rupees and net interest income fell 1.4 percent to 942 million rupees.

Fee income rose 30 percent to 416 million rupees, with foreign exchange income rising to 127 million rupees from 105 million and unspecified other income rising to 236 million rupees