May 11, 2010 (LBO ) – Sri Lanka’s PABC Bank’s net profit for the March 2010 quarter fell 27 percent to 67.5 million rupees from a year earlier, on weaker fee income despite maintaining margins and loan growth while rates fell, interim accounts showed. PABC’s gross assets grew to 22.1 billion rupees from 21.5 billion rupees in December and net assets to 2.04 billion rupees from 1.97 billion rupees. Interest income fell 17 percent to 667 million rupees in the March quarter while interest expenses fell at a faster 35 percent to 327.9 million rupees allowing net interest income to grow 14 percent to 339.7 million rupees.
But fee income fell 53 percent to 91 million rupees as unspecified other income fell 60 percent to 66 million rupees from 166 million rupee a year earlier.
PABC’s performing loans and advances rose to 11.3 billion rupees at end March from 9.8 billion rupees in December. Non-performing loans rose to 2.63 billion rupees from 2.51 billion rupees.
Loan loss provisions fell steeply to only 8.2 million rupees in the March quarter from 81.5 million rupees a year earlier.
Administration expenses rose 17.8 percent to 243 million rupees as staff costs rose 27 percent to 243 million rupees.
Deposits were steady at 16.5 billi