Profit Support

Apr 29, 2011 (LBO) – Sri Lanka’s Sampath Bank group profits rose 63.8 percent to 980 million rupees in the March 2011 quarter, helped by provisional reversals and other income despite an easing of net interest income, interim accounts showed. The group reported earnings per share of 6.41 rupees for the quarter.

Interest income fell 0.3 percent to 4.78 billion rupees and interest expenses rose 4.4 percent to 2.67 billion rupees causing net interest income to fall 5.6 percent to 2.11 billion rupees.

But fee income rose 46.9 percent to 996 million rupees, helped by unspecified other income of 858 million rupees up 59 percent.

There were also net loan loss provisions reversals of 242 million rupees. The bank said it had reversed a 275 million rupee provision for Union Bank resulting in a net 208 million rupee write back on an investment loss provisions. Total performing loans rose 13.8 percent to 140.5 billion rupees while non performing loans rose at a slower 3.3 percent to 6.03 billion rupees. Total deposits rose 7.9 percent to 162 billion rupees.

Sampath group gross assets rose 9.7 percent to 206 billion rupees and net assets rose 5.5 percent to 17.68 billion rupees.