Update on Banking Sector Valuation Guide - with 31/03/2012 Results

hariesha

hariesha

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http://research.srilankaequity.com/t439-update-on-banking-sector-valuation-guide-with-31-03-2012-results

.* Prices of banking sector shares have dropped by significantly by 10-20% during last three months,
except high cap shares such as COMB and HNB. High cap shares may have survived because of foreign
activity.

* It is highly unlikely earnings of the banking sector to be affected due to adverse conditions. (Open for
discussion)

* Those who are selecting banking sector shares should invest with MID/LONG term perspective.

* As most of the banking sector counters are having ESOPs, be mindful about the issue prices.

soileconomy

soileconomy

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If attention is paid on following points .Banking sector shares will record No/Less growth compared to last financial year

(1).High Interest rate (Almost more than 70% of their profits derived from Interest)-This will shrink the interest margins , Record more Non Performing Advances , Less advances being disbursed
(2) Curtailed credit growth- CBSL wants to limit credit growth to 18% ,
according to their last review growth was 10%
(3) Volatile foreign currency rates-Historically banks have proved to be a positive fact for their P&L.But Rapid FCY fluctuations will may create a negative impact on their p&L .
(4) Getting Low cost funds (Current accounts/Savings)will be a challange-Escalation of cost of living and pressure on inflation may hinder the savings habit of people.
(5)Other direct expenses which will directly hit their P&L -Increase of Staff cost , Other general charges-Electricity.etc.

I was trying to indicate some negative points for their P&L.........
If some one can post Positive facts.

K.Haputantri

K.Haputantri

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Thanks hariesha. Its very informative & very useful.

bullrun

bullrun

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I can't open the attachment, why?

Slstock

Slstock

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bullrun wrote:I can't open the attachment, why?

Try registering ( separately) to the reseach section. Need 2 accounts. 1 for forum 1 for research

bullrun

bullrun

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slstock wrote:

bullrun wrote:I can't open the attachment, why?

Try registering ( separately) to the reseach section. Need 2 accounts. 1 for forum 1 for research

Thanks a lot

Slstock

Slstock

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Hariesha,

thanks for you continues efforts to update fundamental situation.
Also it would be good if you can post your findings under the below thread as it all in one place for reference

http://forum.srilankaequity.com/t19939-good-shares-time-to-analyze-and-post-findings-open-invitation-to-all

Redbulls

Redbulls

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slstock wrote:Hariesha,

thanks for you continues efforts to update fundamental situation.
Also it would be good if you can post your findings under the below thread as it all in one place for reference

http://forum.srilankaequity.com/t19939-good-shares-time-to-analyze-and-post-findings-open-invitation-to-all

@slstock
Why can't the above thread shifted to Expert Chamber?

A2Z

A2Z

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Why can't we have to log separately to forum and to research sections??. it will be appreciated if you can kindly make an arrangement to change this login system and make us easier to approach!!

Slstock

Slstock

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Which thread the below or the thread on banking sector? Hariesha thread is already in the research section.

"http://forum.srilankaequity.com/t19939-good-shares-time-to-analyze-and-post-findings-open-invitation-to-all"

If above , as I initiated and wrote on the thread I think it is unethical for me to move it to Experts.
If another Mod thinks it is a good one they can move to "Experts" section.

Redbulls wrote:

slstock wrote:Hariesha,

thanks for you continues efforts to update fundamental situation.
Also it would be good if you can post your findings under the below thread as it all in one place for reference

http://forum.srilankaequity.com/t19939-good-shares-time-to-analyze-and-post-findings-open-invitation-to-all

@slstock
Why can't the above thread shifted to Expert Chamber?

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Update on Banking Sector Valuation Guide - with 31/03/2012 Results

1 Update on Banking Sector Valuation Guide - with 31/03/2012 Results Fri Jul 13, 2012 11:13 pm

hariesha

2 Re: Update on Banking Sector Valuation Guide - with 31/03/2012 Results Sat Jul 14, 2012 7:21 am

soileconomy

3 Re: Update on Banking Sector Valuation Guide - with 31/03/2012 Results Sat Jul 14, 2012 9:31 am

K.Haputantri

4 Re: Update on Banking Sector Valuation Guide - with 31/03/2012 Results Sat Jul 14, 2012 6:35 pm

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5 Re: Update on Banking Sector Valuation Guide - with 31/03/2012 Results Sat Jul 14, 2012 7:05 pm

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6 Re: Update on Banking Sector Valuation Guide - with 31/03/2012 Results Sat Jul 14, 2012 7:06 pm

bullrun

7 Re: Update on Banking Sector Valuation Guide - with 31/03/2012 Results Sat Jul 14, 2012 7:09 pm

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8 Re: Update on Banking Sector Valuation Guide - with 31/03/2012 Results Sat Jul 14, 2012 7:18 pm

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9 Re: Update on Banking Sector Valuation Guide - with 31/03/2012 Results Sun Jul 15, 2012 11:14 pm

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10 Re: Update on Banking Sector Valuation Guide - with 31/03/2012 Results Sun Jul 15, 2012 11:31 pm

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