April 03, 2008 (LBO) –Hong Kong Shanghai Bank Corporation’s Sri Lanka branch reported sharply lower profits for 2007 largely owing to losses from foreign exchange transactions while bad loans are on the rise. The bank’s profit for 2007 fell 36.63 percent to 1.57 billion rupees, according to published annual accounts.
Interest income, however, increased by 45.23 percent to 15.11 billion rupees during the year.
Interest income on loans and advances increased 38 percent to 11.02 billion while interest expenses on deposits and other interest bearing liabilities rose 47.5 percent to 6.14 billion rupees.
The bank made a loss of 489 million rupees on foreign exchange transactions during 2007, compared to a gain of 254 million rupees the previous year.
The bank’s provision for debt increased more than five fold to 1.664 billion rupees in 2007, from 264.4 million the year before.
The bank’s total assets improved to 2.35 billion rupees from 1.86 billion during the period with total deposits going up to 90.56 billion from 67.25 billion rupees.
The bank also took on board local mobile operators Dialog Telekom and Mobitel to launch a system to provide customers quick access to information on