Annual Report 2008 - Ministry of Finance and Planning

3. Performance of Public Enterprises
155
on investment of Treasury Bills. The net interest income
of consolidated RDBs as a percentage of average assets
(Interest Margin) amounted to 9.5 per cent in 2008.
Chart 3.13
The staff cost of the sector as a percentage of total operating
expenses amounted to 69.9 per cent in 2008. RuDB
maintained the lowest staff cost/ total operating expenses
ratio of 67.9 per cent.
The profitability of consolidated RDBs grew by 27.36 in
2008 due to the increase in interest income from loans and
advances followed by the growth of loan demand. The profit
before tax amounted to Rs. 1037 million in 2008. Out of this,
33.3 per cent was contributed by WDB.
The Return on Average Assets Ratio of the sector remained
at 3.2 percent in 2008 as in 2007. Only UDB and KDB reported
a lower ROA than the average. Return on Equity Ratio has
declined from 17.2 percent in 2007 to 14.8 percent in 2008.
The ROE of UDB, KDB and RaDB have indicated an increase
in 2008.
Chart 3.15
The operational cost of RDBs has increased by 25.89 percent
in 2008 than the year 2007. The majority of operational
cost constitutes with staff cost as most of RDBs have not
automated their functions. As a result the Cost Income Ratio
of RDBs remained at 75.9 per cent in 2008. The highest Cost
Income Ratio of 81.7 per cent was reported at UDB while SDB
maintained the lowest Cost Income Ratio of 74.2 percent in
2008.
Chart 3.14
Ministry of Finance and Planning Sri Lanka
Annual Report 2008