Narrow Profits

Mar 07, 2010 (LBO) – Sri Lanka’s Pan Asia Banking Corporation’s (PABC) December quarter profits fell 70 percent to 19.7 million rupees from a year earlier, on higher expenses and tax while full year net was up 73 percent to 387 million rupees on fee income.

Full year interest income was up 10 percent to 3.16 billion rupees, while interest expenses were 1.87 billion rupees, up 4.0 percent, resulting in net interest income of 1.28 billion rupees, up 20 percent.

Government securities held to maturity jumped 220 percent to 2.94 billion rupees and those held for trading increased 31.3 percent to 3.7 billion rupees.

For the year non-interest income was up 87 percent to 702.4 million rupees.

Deposits were up 13 percent to 16.3 billion rupees, while borrowings were down 8.8 percent to 1.37 billion rupees.

The banking group’s gross assets for the full year rose 13.5 percent to 21.5 billion rupees and net assets rose to 1.97 billion rupees from 1.59 billion.

PABC group reported earnings per share of 18 cents for the quarter and 3.51 rupees for the full year.

In the December quarter interest income fell 13 percent to 718.1 million rupees, interest expenses fell faster 17 percent to 423 million rupees allowing net interest income t