Tight Margins

Aug 20, 20078 (LBO) – Sri Lanka’s Seylan Bank’s net profits for the quarter ended June 2008 has fallen 32-pct to 309.6 million rupees on tighter margins, interim accounts filed with the Colombo Stock Exchange showed.

Total deposits were up 3.85 percent to 117.6 billion rupees.

Group assets grew 3.3 percent to 162.4 billion rupees with net assets up 4.75 percent to 10.4 billion rupees.

Group interest income rose 23.6 percent to 5.3 billion rupees, while interest expense increased 37.6 percent to 3.6 billion rupees leaving net interest income growth hardly changed with a growth of 0.7 percent to 1.7 billion rupees.

At stand alone bank level interest income grew 24.3 percent to 4.06 billion rupees, interest expense 39.9 percent to 3.3 billion rupees and net interest income was up 1.9 percent to 1.6 billion rupees.

Foreign exchange income was up 38 percent to 980 million rupees with group non-interest income bringing in 2.8 billion rupees, up 10.8 percent.

Loan loss provisions for the quarter were up 25.8 percent at 180.1 million rupees at group level and up 20 percent to 161 million rupees at bank level.

Income tax fell to 166 million rupees from 398 million and the company reported a