Flat Quarter

May 28, 2010 (LBO) – Sri Lanka’s Deutsche Bank unit’s March 2010 quarter profits were flat at 235.2 million rupees on lower net interest income balanced by higher exchange income, published accounts showed. Deutsche Bank’s Sri Lanka unit’s gross assets grew 13 percent to 27 billion rupees. Deutsche Bank’s March quarter interest income fell 21 percent to 361 million rupees, while interest expense fell at a steeper 51.3 percent to 50 million rupees but net interest income fell 12 percent to 310 million rupees.

The bank’s foreign exchange income rose 30 percent to almost 276 million rupees from a year ago, in contrast to many other banks operating in the island amid a less volatile rupee-dollar exchange rate peg. Fee-based income was also up 38 percent to 298 million rupees.

Its operating expenses in the March quarter which includes wages, pensions and premises costs, rose 12 percent to 260 million rupees, the accounts showed.

Total non-performing loans dipped 1.3 percent to 55 million rupees, while performing loans grew 16 percent to 5.7 billion rupees, in March quarter 2010. Gross loans grew 16 percent to 5.79 billion rupees.

The bank’s government securities held-to-maturity portfolio fell