First Half

Aug 25, 2008 (LBO) – Sri Lanka’s state-run People’s Bank group net profits fell 5.7 percent to 1,484 million rupees in the half year to June 2008, with incomes taxes more than doubling in the period, interim accounts showed. At bank level interest margin fell to 4.4 percent from 4.6 percent, return on assets to 1.2 percent from 1.4 percent, return on equity to 16.2 percent from 20.2 percent. Capital adequacy ratio was maintained at 6.9 percent.

At pre-tax level group profits were up 38.4 percent to 3,007 million but income taxes went up 154 percent to 1,522 million in the first half of this year.

Group interest income was up 28.2 percent to 27.56 billion rupees, interest expense spiked 39.2 percent to 17.83 billion rupees, while net interest income grew by a slower 12.6 percent to 9.7 billion rupees.

The bank showed a 25.4 percent increase in non-interest income to 2,638 billion rupees. Foreign exchange income grew to 412 million rupees from 345 million, while unspecified other income grew 26.6 percent to 2,225 million rupees.

The group’s performing loans and advances was flat, falling 0.7 percent to 260.5 billion rupees. Non-performing loans edged up 7.3 percent to 17.0 billion rupees.

Group deposit