Steady State

Apr 29, 2011 (LBO) – Sri Lanka’s Seylan Bank group net profits in the March 2011 quarter rose 27 percent to 195 million rupees from a year earlier, helped by loan loss provision reversals and steady margins on its fund book, interim accounts showed. The bank reported earnings per share of 3.93 rupees for the quarter. After the balance sheet date the bank has announced a rights issue of one share for every voting and non-voting stock.

The bank said it is also proposing to change 3.39 million no-redeemable preference shares to make them redeemable, at a shareholder meeting called for in on May 09.

Interest income fell 4.8 percent to 3.85 billion rupees and interest expenses fell at a faster 12.4 percent to 2.0 billion rupees allowing net interest income rose 5.1 percent to 1.85 billion rupees.

Group fee income rose 13.3 percent to 527 million rupees. Administration expenses rose 9.2 percent to 775.5 million rupees. There was a loan loss reversal of 63.7 million rupees, though the bank made a 96 million rupee provision for loss of value of investments.

Total performing loans rose 3.7 percent to 79.2 billion rupees from December 2010. Non-performing loans fell 3.7 percent to 24.7 billion rupees. Total deposits rose 4.6 percent to 11