Sri Lanka Equity Forum
Dear Reader,

Registration with the Sri Lanka Equity Forum would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
Sri Lanka Equity Forum

Discussion Forum for Stock Market Investors in Sri Lanka

සිංහල පරිවර්තනය
Submit Post
Submit Post
Market Place

Add an ad

View all ads

Latest topics

» lOFC definitely will hit 6/-
by stockback Today at 2:51 am

» CIND , 10% guaranteed return
by Teller Today at 2:46 am

» Look PAP Amazing company
by Teller Today at 2:44 am

» Bottom of market
by Teller Yesterday at 10:52 pm

» Triple Top Reversal pattern
by Teller Yesterday at 9:16 pm

» Keep eye on Politics
by Yahapalanaya Yesterday at 6:25 pm

» BFN - PRIVATE PLACEMENT ANNOUNCEMENT TO COME SOON
by mahasona2 Yesterday at 1:00 pm

» LOFC - LDEV -EXPO ....BULL RUN TIME FOR COLLECTION ..
by mahasona2 Yesterday at 12:54 pm

» Why AAIC Should trade above RS.50/-
by wisdom79 Yesterday at 12:38 pm

» PAN ASIA POWER
by Nuwan Samarawickrama Yesterday at 10:33 am

» Aluf will be better
by wisdom79 Yesterday at 8:50 am

» Stop promoting garbage. Don’t get deceived.
by wisdom79 Yesterday at 8:46 am

» RICH is not bad @ 9/-
by Teller Yesterday at 3:18 am

» BFN බොරු සෙලින් දාලා කොහොම හරි 11 වගේ ගානට 500000 එකතු කරගන්න කියලා අර 14 ට ලක්ශයක් සෙලින් දැම්මේ මේ ටේලර් මහත්තයාම තමයි
by Teller Yesterday at 3:16 am

» Be careful with HVA and LITE
by Teller Yesterday at 3:11 am

» WATA future looks good
by Teller Wed Jun 19, 2019 10:00 pm

» If i am the EPF buyer,I will go for PLC
by Teller Wed Jun 19, 2019 9:59 pm

» LLUB Pattern reversed. Good buy @60, target +20%
by Teller Wed Jun 19, 2019 9:58 pm

» THE CURSE ON JKH
by Teller Wed Jun 19, 2019 9:04 am

» Why we should buy AEL.N0000…?
by Miss-Sangeetha Wed Jun 19, 2019 7:45 am

» The Curse Of AEL
by Yahapalanaya Tue Jun 18, 2019 11:06 pm

» Senthilverl Drives Sri Lanka Stock Market Turnover to hit Rs.2 billion
by Yahapalanaya Tue Jun 18, 2019 11:03 pm

» 8 Finance companaies to be closed very soon
by samaritan Tue Jun 18, 2019 8:52 pm

» Copreus (Pvt) Ltd - Need some Information
by Copreus Tue Jun 18, 2019 12:44 pm

» BALA can come down to 9/-
by Teller Tue Jun 18, 2019 12:27 am

» MARKET UP......BUT BFL....GRAN....TAFL......
by Trader321 Mon Jun 17, 2019 4:31 pm

» TAFL - GOLDEN EGG IN POULTRY SECTOR
by Trader321 Mon Jun 17, 2019 4:29 pm

» MGT.N0000 & TJL.N0000 keep eye.
by Trader321 Mon Jun 17, 2019 3:58 pm

» TAFL.N000 / GRAN.N0000
by Trader321 Mon Jun 17, 2019 3:57 pm

» Market will test 4700
by karuna2 Mon Jun 17, 2019 1:08 pm

» Loss-making stockbrokers may not last six months
by Miss-Sangeetha Mon Jun 17, 2019 12:51 pm

» Those who are having SUGA And HDEV (Hotel Developers)coming week you all can excpect Good News to come
by Capton KIng Cool Mon Jun 17, 2019 12:25 pm

» ECL wAS 2.8 Last week Today 4.7 .Whats Next? Acme?
by Capton KIng Cool Mon Jun 17, 2019 9:02 am

» IDL IDL IDL
by Teller Sat Jun 15, 2019 6:18 pm

» Look APLA its trending to 98LKR
by Teller Sat Jun 15, 2019 2:24 am

» SAMP Oversubscribed?
by Teller Sat Jun 15, 2019 2:13 am

» Apple Lost Sales in Europe to Chinese Firms Ahead of US Huawei Crackdown
by Teller Sat Jun 15, 2019 1:44 am

» Market is On The Rise.Market PER 8.5, EPF Has entered the market curently they are buying AEL (Access Enginering)There'r lot of counters. Rich,TkyoAsir,Amsl,Osea.CINV.EXPO,JINS and Tyre.good luck
by wisdom79 Fri Jun 14, 2019 7:55 pm

» NEXT RUN People's leasing and Finance WAIT AND WATCH ENJOY RIDE..
by ddrperera Thu Jun 13, 2019 9:25 pm

» EPF Investment in Unquated copmanies .Who is responsible Previous Centeral Bank Governer and Former Regime.
by Capton KIng Cool Thu Jun 13, 2019 9:05 am

» PDL (Property Development)
by Capton KIng Cool Thu Jun 13, 2019 8:51 am

» EAST Steady at 18
by Cricketman Thu Jun 13, 2019 5:28 am

» Guys what happen these days
by Yahapalanaya Thu Jun 13, 2019 2:29 am


You are not connected. Please login or register

Sri Lanka Equity Forum » Stock Market Talk » Sri Lanka's Commercial Bank's deposits surpass landmark Rs 1 Trillion in Q1 2019

Sri Lanka's Commercial Bank's deposits surpass landmark Rs 1 Trillion in Q1 2019

Go down  Message [Page 1 of 1]

hammurabi

hammurabi
Equity Analytic
Equity Analytic
[size=43]The Commercial Bank Group comprising of the Commercial Bank of Ceylon PLC, its subsidiaries and associates, has reported gross income of Rs 35.501 billion for the three months ended March 2019, an improvement of 12.86% over the first quarter of 2018. [/size]
[size=43]Operating profit before impairment charges for the period represented an increase of 4.86% over the corresponding period of 2018. However, operating profit before taxes on financial services at Rs 6.804 billion reflected a negative growth of 5.11%, largely driven by an increase in impairment charges owing to rising non-performing loans and early recognition of impairment provisions as required by the expected credit loss method under SLFRS 9. [/size]
[size=43]The higher impairment charges necessitated by the slowdown in key sectors of the economy, lower exchange profits resulting from translation losses on foreign exchange, and substantially higher taxation in the three months reviewed negatively impacted profits despite sound operational results reported by the Group.[/size]
[size=43]The Group posted profit before income tax of Rs 5.019 billion and profit after income tax of Rs 3.191 billion in the first quarter of 2019 in a performance that reflects the impact of these external factors.[/size]
[size=43]Further, an increase in the taxes on financial services primarily due to the introduction of Debt Repayment Levy (DRL) from 1st October 2018, which cost the Bank Rs 576.450 million, contributed to a decline in the pre-tax profit of the Group during the reviewed quarter by 14.86%to Rs. 5.019 billion and by 19.08% to Rs. 4.774 billion at Bank level.[/size]
[size=43]The Group was also required to pay substantially higher income taxes in respect of the three months under the new tax regime introduced by the Government in 2018, which took away most of the tax concessions previously enjoyed by the banking industry. The income tax charge for the three months under review amounted to Rs 1.828 billion, reflecting an effective tax rate of 36.42% as opposed to 29.79% in the first quarter of 2018. Due to these factors, taxes on financial services and income tax accounted for 53.13% of the operating profit of the Group. Consequently, profit after tax for the Group reduced by 22.90% to Rs. 3.191 billion and by 27.23% to Rs. 3.023 billion at Bank level.[/size]
[size=43]Commenting on the Bank's performance, the Commercial Bank Chairman Dharma Dheerasinghe said that he is happy to note that the confidence of valued customers has enabled the Bank to reach the milestone Rs 1 Trillion mark in deposits for the first time as anticipated. "However, the rate of taxation on banks continues to be a matter of concern, particularly in the context of the challenging external conditions affecting the industry. As a systemically important bank and as a responsible stakeholder of the economy, we need to focus on further increasing our capacity to support key sectors of the economy, and while the taxes we pay represent one form of support, there are many others including SMEs that need attention," he said. [/size]
[size=43]The Bank's Managing Director/CEO S. Renganathan explained that the Bank has followed a more cautious approach in expanding its advances portfolio during these challenging economic conditions, which has contributed to a marginal decline in the loan book in comparison to 31st December 2018.He said this has contributed to a drop in net interest income and has also had a cascading effect on the Group's profit after tax. "Despite the decline in advances, I am happy to say that the Bank has continued to support the SME sector, as reflected in the satisfactory growth of this portfolio during the quarter," Mr Renganathan added.[/size]
[size=43]He disclosed that in order to facilitate comparison of the figures of the quarter reviewed with those of the corresponding quarter, the figures of the first quarter of 2018 have been re-stated in line with the requirements of SLFRS 9 which was implemented from the fourth quarter of 2018.[/size]
[size=43]The Group reported an interest income of Rs 31.977 billion for the three months reviewed, an increase of 13.87%, while interest expenses grew by a higher rate of 16.07% to Rs 19.857 billion due to the growth in deposits and the continuing shift to high cost time deposits. As a result, net interest income grew by a lower rate of 10.44% to Rs 12.120 billion.[/size]
[size=43]Net fees and commission income totaled Rs 2.448 billion, reflecting a marginal increase of 0.06%, while gains or losses from trading, and gains or losses from de-recognition of financial assets recorded growths of 204.19% and 248.35%, respectively. However, net other operating income which includes exchange profit and investment income reflected a net loss of Rs 298.811 million due to translation losses on foreign exchange as a result of an appreciation of the Sri Lanka Rupee against the US dollar in the quarter under review as opposed to a translation gain reported in the first quarter of 2018 due to a depreciation of the Sri Lanka Rupee during that period.[/size]
[size=43]The net operating income of the Group recorded a marginal increase of 3.54% to Rs 13.222 billion, while operating expenses increased by 14.64% to Rs 6.418 billion largely due to salary increments of staff and an increase in general expenses on maintaining the Bank's branches.[/size]
[size=43]Total assets of the Group grew by Rs 23.465 billion or 1.78% to Rs 1.343 Trillion as at 31st March 2019, and reflected a YoY growth of Rs 112.655 billion or 9.15%.[/size]
[size=43]Total loans & advances reduced by a marginal Rs 5.112 billion or 0.57% since end 2018 to Rs 892.844 billion at the end of the quarter reviewed. Loan book growth over the preceding 12 months amounted to Rs 88.493 billion reflecting a YoY growth of 11%.[/size]
[size=43]Deposits grew by Rs 31.214 billion or 3.14% since 31st December 2018, to Rs 1.026 Trillion as at 31st March 2019. The growth of deposits over the preceding 12 months was Rs 112.441 billion or 12.31% YoY.[/size]
[size=43]In other key indicators, the Bank's net assets value per share stood at Rs 116.04 at the end of the first quarter of 2019 despite an increase in shareholders' funds, as against Rs 117.15 at the end of 2018, mainly due to an increase in the number of shares during the first quarter of 2019 consequent to the scrip dividend declared as the final dividend for 2018. Return on assets (before tax) and return on equity stood at 1.48% and 10.32% respectively, as opposed to 2.09% and 15.56% for 2018.[/size]
[size=43]The Bank's interest margin for the period under review however improved marginally to 3.68% from 3.67% recorded in 2018.[/size]
[size=43]The Bank's gross NPL ratio increased to 4.14% as at 31st March 2019 from 3.24% at end December 2018, while its net NPL ratio increased from 1.71% to 2.47% for the same period[/size]
[size=43]The Bank's Total Tier 1 capital ratio (with capital buffers) at 11.353% as at 31st March 2019 was comfortably above the minimum requirement of 10% which became effective from 1st January 2019 under Basel III while the Total Capital Ratio of 15.184% was well in excess of the Basel III minimum requirement of 14%.[/size]
[size=43]The only Sri Lankan Bank to be ranked among the world's top 1000 banks for eight years consecutively, Commercial Bank operates a network of 266 branches and 830 ATMs in Sri Lanka. The Bank has won multiple international and local awards in 2016 and 2017 and over 40 international and local awards in 2018.[/size]
[size=43]Commercial Bank's overseas operations encompass Bangladesh, where the Bank operates a further 19 outlets; Myanmar, where it has a Representative Office in Yangon and a Microfinance company in Nay PyiTaw; and the Maldives, where the Bank has a fully-fledged Tier I Bank with a majority stake.[/size]

[size=34]http://www.colombopage.com/archive_19A/May15_1557891394CH.php[/size]

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum