May 26, 2009 (LBO) – Profits of HSBC’s Sri Lanka unit grew 40 percent to 628.1 million rupees in the March 2009 quarter on strong foreign exchange income, despite rising interest expenses, its published accounts showed.
The bank’s gross assets from December to March had grown by 8.2 percent to 161,544.4 million rupees, while net assets had increased 5.6 percent to 14,440.0 million.
Errors corrected/Interest income and net interest income should read as million rupees. Interest income grew 16.8 percent in the quarter. Last year March quarter forex losses were 280 million rupees.
Interest income grew 16.8 percent to 5,297 million rupees, while interest expense expanded at a much faster 28.4 percent to 2,566.8 million rupees, allowing net interest income to grow only 7.6 percent to 2,730.1 million rupees.
Interest on loans and advances grew 17.2 percent to 3,670.50 million rupees as performing loans grew from 87,156.4 million rupees in December to 88,716.0 million in March 2009, up 1.7 percent.
Interest income from other assets, including government securities grew 15.7 percent to 1,626.40 million rupees. The stock of government securities grew 16.5 percent to 36,090.2 million rupees from Dec