
Watch out! Don’t get carried away.
Profits at Sri Lanka's National Development Bank rose 135 percent from a year earlier to 1.19 billion rupees in the March 2014 quarter, amid positive loan growth, interim accounts showed.
How can the profit increase by 135% when a 6 percent loan and net interest income growth?
Interest income rose 3 percent to 5.1 billion rupees in the quarter and interest expenses fell 3 percent to 3.2 billion rupees and the bank grew net interest income 16 percent to 1.86 billion rupees.
Loan losses were 125 million rupees, up from 23 million rupees.
Then how can the profit increase by 135%?
Fee income rose 54 percent to 594 million rupees. Trading gains rose 68 percent to 716 million rupees.
Mr.R.T. the retired defunct MD of HNB tried the same thing at HNB.
Watch out! Don’t get carried away.
