A 17% drop in interest income for the 1Q10 contributed to a 27% decline in net profits for Sri Lanka's Pan Asia Bank according to its interim financial statements released this week.
The operating profit for the three months ended 31 March 2010 was Rs.67.5 million compared to net profit of Rs.92.4 million for the corresponding period in 2009. Interest income for the period under review decreased to Rs.667 million from Rs.806 million the previous year.
Pan Asia’s income statement shows a 35% decline in interest expenses to Rs.327 million, resulting in a 14% gain in net interest income at Rs.339 million. However, non-interest income including foreign exchange income fell by 53% during the quarter to Rs.91 million.
Provisions for bad and doubtful debts and loans written off declined by 90% Rs.8.2 million from Rs.81.5 million reported in 1Q09.