Sri Lanka-based Bank of Ceylon's net profit for the first quarter fell 19.6% year over year on the back of higher impairment charges and operating expenses.
The bank said May 10 that net profit attributable to equity holders dropped to 4.80 billion rupees from 5.97 billion rupees in the prior-year period. EPS slipped to 959.90 rupees from 1,591.66 rupees.
Net interest income rose to 15.13 billion rupees from 14.21 billion rupees, while net fee and commission income fell to 1.81 billion rupees from 2.24 billion rupees. Interest margin as of March 31 came in at 2.96%, down from 3.31% at the end of December 2017.
The group posted impairment charges for loans and other losses of 2.45 billion rupees, up from 1.78 billion rupees.
Net operating income grew to 17.53 billion rupees from 16.90 billion rupees. Total operating expenses also rose to 8.73 billion rupees from 7.06 billion rupees.
At the end of March, the bank's gross nonperforming advances ratio stood at 3.83%, up from 2.85% as of Dec. 31, 2017. Its net NPA ratio also rose to 1.29% from 0.34%.
The group's total capital adequacy ratio clocked in at 13.827%, down from 14.49% in the prior-year period. Its Tier 1 and common equity Tier 1 ratios for the period both stood at 10.024%, slightly down from 10.87%.
As of May 10, US$1 was equivalent to 157.80 Sri Lankan rupees.
