July 28, 2011 (LBO) – Sri Lanka’s Pan Asia Bank net profits for the June 2011 quarter rose 152 percent to 210 million rupees driven by strong loan growth including gold backed loans and leases, the bank said. The bank reported earnings of 71 cents per share for the quarter.
Interest income for the quarter rose 47 percent to 1,038 million rupees and interest expenses rose 59 percent to 521 million rupees and net interest income rose 38 percent to 517 million rupees.
The bank’s performing loans rose 115 percent by end June 2011 to 26.6 billion rupees from a year earlier.
Pan Asia Bank said growth came from gold backed loans (pawning), leasing loans to military officers and overdrafts.
Fee income also rose 34 percent to 133 million rupees.
There was a loan loss reversal of 32 million rupees. Non-performing loans were steady at 2.55 billion rupees from 2.48 billion a year earlier.
Pan Asia Bank said its non performing loan ratio fell to 4.52 percent in June 2011 from December 2010 and net NPLs (after provisions) fell to 2.59 percent from 2.74 percent.
Pan Asia Bank had added 10 new branches taking its network to 51.
The banks’ gross assets had grown to 40 billion rupees