Tight Quarter

Nov 13, 2009 (LBO) – Sri Lanka’s Commercial Bank’s profits grew 3.5 percent to 971 million rupees in the September quarter from a year earlier with lower provisioning, while total revenues fell 6.1 percent to 10.5 billion rupees. The bank’s interest income fell 6.1 percent to 8.87 billion rupees, interest expenses fell at a slower 5.5 percent to 5.8 billion rupees and net interest shrank at a faster 7.1 percent, according to interim accounts.

The bank’s fee income also fell 4.6 percent to 1,405.1 million rupees.

Provisions for loan losses fell to only 130 million rupees from 377.2 million a year earlier with a 34 million reversal in general provisions.

Net loans and advances were down 7.7 percent from the beginning of the year to 166.3 billion rupees, but it was slightly up from 165.9 at the end of June.

Total non-performing loans were up 42 percent from the beginning of the year to 20.2 billion rupees in September but were lower than the 20.8 billion rupees reported in June.

Commercial Banks’ gross non performing loan ratio improved to 8.19 percent in September from 8.85 percent in June. The ratio after provisions improved to 5.92 percent from 6.65 percent in June.

The bank said it did not make pa