Oct 26, 2010 (LBO) – Sri Lanka’s Pan Asia Bank net profit for the September 2010 quarter rose 87 percent to 129 million rupees from a year ago as interest costs fell and non-interest income rose, a stock exchange filing said. Interest income fell two percent in the September 2010 quarter to 776 million rupees while interest expenses fell 19 percent to 362 million rupees, resulting in net interest income rising 22 percent to 414 million rupees.
Interest expenses on deposits fell 25 percent to 312 million rupees during the period, the interim accounts filed with the stock exchange showed.
The bank’s interest margin fell to 6.35 percent at the end of September 2010 from 6.42 percent at the beginning of the year.
After-tax return on assets fell to 1.57 percent from 1.94 percent and return on equity fell to 15.88 percent from 20.86 percent over the same period.
Non-interest income rose 93 percent to 200 million rupees while provision for bad loans fell 83 percent to 9.5 million rupees.
Pan Asia Bank’s basic earnings per share rose to 1.02 rupees in September 2010 from 0.62 rupees the year before.
Claude Peiris, chief executive of PABC, attributed the higher quarterly profit to “strategic in