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Other Income

May 14, 2010 (LBO) – HSBC's Sri Lankan unit's March quarter profits rose 103 percent to 1.41 billion rupees from higher foreign exchange and fee-based incomes despite lower net interest margins and higher operating expenses, the accounts showed. Gross assets rose 7.1 to 174 billion rupees, HSBC Sri Lanka's March accounts showed.

HSBC Sri Lanka's interest income fell 19 percent to 4.29 billion rupees, while interest expenses came down 35 percent to 1.67 billion rupees, resulting in net interest income of 2.6 billion rupees, down 4.0 percent from last year.

Foreign exchange income rose 376 percent to almost 672 million rupees from a year ago, while fee-based income was up 102 percent to 1.66 billion rupees.

The bank's operating expenses in the March quarter which includes wages, pensions and premise costs, rose 17.5 percent to almost 1.5 billion rupees, its accounts showed.

HSBC Sri Lanka's specific loan loss provisions had come down 92 percent to 22.5 million rupees, while it had a reversal of 32.1 million rupees from general provisions after making provisions of 291.4 million rupees in the March 2009 quarter.

The bank's loan recoveries rose 43 percent to 348.5 million rupees, while it had written-off almost 510 mil

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