Higher Profits

Nov 14, 2011 (LBO) – Net profits of Sri Lanka’s Commercial Bank of Ceylon rose 45 percent to 2.06 billion rupees in the September 2011 quarter helped by lower tax rates and provision reversals, interim accounts showed. The group reported earnings of 2.57 rupees per share for the quarter. For the nine months to September 2011 it reported earnings of 7.61 rupees on profits of 6.1 billion rupees. The stock closed at 104.70 Monday.

Commercial Bank group interest income rose 8.51 percent to 9.5 billion rupees in the quarter and interest expenses at a faster 10.75 percent to 4.9 billion rupees allowing net interest income to grow at a slower 5.4 percent to 1.59 billion rupees.

Group performing loans rose 18 percent to 252 billion rupees from December 2010 to September 2011, and non-performing loans rose at a slower 6.74 percent to 15.9 billion rupees.

Its government securities trading portfolio fell to 10.9 billion rupees from 15.0 billion rupees in December. Loan loss provisions were a net reversal of 180 million rupees, against a provision of 196 million a year earlier.

Fee income rose 5.4 percent to 1.54 billion rupees helped by a 42 percent rise in forex income despite a weakening on un-specified othe