Oct 31, 2011 (LBO) – Sri Lanka’s Sampath Bank group profits for the September 2011 quarter rose 45.6 percent to 1.14 billion rupees helped by higher non-interest income and a tax cut interim accounts showed. The group reported earnings of 7.33 rupees for the quarter. For the nine months to September earnings were 20.81 rupees per share on total profits of 3.2 billion rupees.
Group interest income rose 21.1 percent to 5.58 billion rupees and interest expenses rose at a slightly higher 21.5 percent to 3.0 billion rupees, allowing net interest income to rise 18.3 percent to 2.5 billion rupees.
Performing loans rose 28.4 percent to 158.5 billion rupees in September 2011 from 123.4 billion in December 2010. Bad loans fell 11 percent from 5.83 billion rupees to 5.19 billion rupees in the same period.
Loan loss provisions were a reversal of 226 million rupees, against a reversal of 342 million a year earlier.
Non-interest income rose 91.8 percent to 1.34 billion rupees with unspecified other income rising 92 percent to 1.14 billion rupees. A ‘value added’ tax on financial services fell to 270 million rupees from 443 million after the rate was cut by the state.
Deposits grew 19.5 percent to