14-May-2013 Interim financial statements 31-03-2013

INTERIM FINANCIAL STATEMENTS 31-03-2013

COMMERCIAL BANK OF CEYLON ,
GALADARI HOTELS ,
CITY HOUSING & REAL ESTATE ,
THE LANKA HOSPITAL CORPORATION ,
CHILAW FINANCE,
BIMPUTH FINANCE ,
BERUWELA WALK INN ,
SANASA DEVELOPMENT BANK ,
NATIONS TRUST BANK,
ASIAN ALLIANCE INSURANCE ,
NATIONAL DEVELOPMENT BANK,
ASIA CAPITAL ,
CEYLON HOSPITALS PLC (DURDANS),
JANASHAKTHI INSURANCE COMPANY ,
N D B CAPITAL HOLDINGS ,
SRI LANKA TELECOM ,
UNION BANK OF COLOMBO

Interim Financial Statements for the period ended 31-03-2013 have been uploaded on the CSE website.

THE LANKA HOSPITAL CORPORATION
http://www.cse.lk/cmt/upload_report_file/516_1368522395233.pdf

CEYLON HOSPITALS PLC (DURDANS)
http://www.cse.lk/cmt/upload_report_file/514_1368531150.pdf

SANASA DEVELOPMENT BANK
http://www.cse.lk/cmt/upload_report_file/1182_1368525861480.interim%20Accounts%20march%202013

JANASHAKTHI INSURANCE COMPANY
http://www.cse.lk/cmt/upload_report_file/841_1368527746.pdf

SRI LANKA TELECOM
http://www.cse.lk/cmt/upload_report_file/390_1368529873.pdf

UNION BANK OF COLOMBO
http://www.cse.lk/cmt/upload_report_file/1047_1368532206.pdf

Very good results from NTB , JINS

While NDB Bank reported a net profit of Rs. 6.2 billion for the quarter ended March 31, 2013, up a massive 387 percent from the previous year, NDB Group profits fell 53 percent to Rs. 499.9 million from Rs. 1.07 billion a year earlier, interim financial results showed.

"National Development Bank PLC (NDB) continued its strong growth momentum by posting impressive results for Q1 2013 in the backdrop of intense competition which placed severe pressure on interest margins and posed many challenges to the banking industry during the first quarter," the bank said in a statement.

Despite these challenges, NDB recorded a strong performance for the first quarter of 2013, posting a commendable Profit After Tax (PAT) of Rs. 6.2 Bn to its shareholders, which is an increase of 387% compared to the corresponding period of last year. The Bank’s Profit Before Tax (PBT) rose to Rs. 6.8 Bn during the said period reflecting an increase of Rs. 5.1 Bn (294%) over the PBT of Rs.1.7 Bn for the quarter ended March 2012. The reported earnings of the Bank are mainly due to the significant growth in Net Interest Income of 21% and Equity Income of Rs. 5.3 Bn. The Bank’s PBT excluding the exceptional equity income of Rs 5.3 Bn and the one off reversals of loan loss provisions made in the prior period, have recorded a growth of 4% over the prior period. In addition to this, costs saving strategic initiatives implemented by the Bank to eliminate non-value adding activities and streamline its internal processes have contributed positively towards improving the Core Banking Profits and setting the stage for a strong 2013.

The Bank continued to benefit from the group synergies and provides unique value proposition to its shareholders. The strategic disposal within the Group by selling the investment in AVIVA NDB Insurance PLC to American International Assurance Company Limited (AIA) of Hong Kong during the fourth quarter of 2012 earned impressive capital gains for NDB Capital Holdings PLC (NCAP) which is a subsidiary of the Bank. Following the share buyback agreement that was entered into, NCAP, bought back its shares in March 2013 posting a Rs. 5.3 Bn capital gain to the Bank’s Equity Income.

The Group share of profits increased tremendously by 224% compared to March 2012 as a result of improved performance by NCAP. The NDB Investment Bank and NDB Stock Brokers recorded modest profits due to the prevailing slow moving and inactive capital market conditions in the first quarter.

The Bank’s Earning per Share (EPS) of Rs. 43.52 indicates a significant increase of 145% over December 2012. The Bank’s Return on Average Assets (ROA) and Equity (ROE) for the first quarter stood at 4.05% and 42.42% respectively due to the exceptional Equity Income of Rs. 5.3 Bn.

The deposit base of the Bank grew by Rs. 20 Bn compared to the corresponding period under review posting a 22% growth to reach Rs. 110 Bn as at 31 March 2013. The Bank’s newly introduced ‘NDB Real Saver" account which offers a true savings proposition to its customers has been able to attract over Rs. 500 Mn in deposits while inculcating the saving habit amongst all Sri Lankans.

The growth in loans and advances of the banking sector was at its lowest since end 2010, and thus comparative interest income earned dropped at a higher rate. Average Weighted Prime Lending Rate (AWPLR) has remained high and volatile in 2013, increasing the cost of borrowings to customers. Despite these challenges, the Bank’s loans and advances portfolio increased to Rs. 119 Bn as at 31 March 2013, an increase of Rs. 13 Bn, or 13% compared to March 2012. The NPLs to gross lending portfolio was 1.56% with a provision cover of 54% as at 31 March 2013. The NPL ratio of the Bank continues to remain healthy due to the prudent risk management practices adopted by the Bank and is well below the industry average. The liquidity position of the Bank is managed exceptionally well and the ratio of 24.69% (DBU) is well above the required statutory limit of 20%.

The regulatory Tier I and II Capital Adequacy Ratio (CAR) improved to 15.86% from 12.41% as at December 2012 due to the realized capital gains from the share buyback transaction effected during this period. Accordingly, the Bank’s capital base increased by Rs. 4.3 Bn. The Bank’s very strong Tier I capital base and the cushioning capacity to absorb any vulnerability or uncertainty in the market supports the future growth potential through profitable avenues to grow its balance sheet aggressively in the coming months.

Commenting on the Q 1 2013 performance, Russell De Mel, CEO of NDB said, "The impressive performance during the period results from our continued focus on achieving a number of main objectives, including re-focusing on our core business and pursuing a growth agenda. Key initiatives aimed at developing our SME and retail segments and improving asset quality remain on track. We have expanded our distribution network and are continuing to work on a number of IT initiatives which will enable us to offer service enhancements for our customers and bring sustainable improvements in our operational efficiency".

Hemaka Amarasuriya, Chairman stated that "Our solid foundation, cemented by our strong capital base has undoubtedly expanded our horizons. We strongly believe in our ability to achieve higher returns through improved performance, intensified cost reduction drives and disciplined approach to capital and funding costs".

Further he said, "The Bank will continue to grow through aggressive channel expansion, introducing innovative and personalized product propositions and service offerings to fulfill the financial needs of a diverse clientele supplemented by streamlined business processes during the rest of the year".
http://island.lk/index.php?page_cat=article-details&page=article-details&code_title=79025

Union Bank of Colombo PLC saw group net profits plunge 56.98 percent to Rs. 53.13 million for the quarter ended March 31, 2013 from Rs. 123.53 million a year earlier, while at bank level, net profits fell 38.69 percent to Rs. 62.96 million from Rs. 102.7 million a year ago, interim financial statements filed with the Colombo Stock Exchange showed.

The bank released the following statement yesterday (14): "Anil Amarasuriya, Director / Chief Executive Officer of Union Bank of Colombo PLC (UBC) strongly iterated that the Bank has continued to successfully journey towards its aspirations of positioning itself as the ‘Top of the Mind’ SME Bank

in Sri Lanka during the first quarter of 2013 amidst the challenges in the Banking sector.

Despite challenges in the Banking sector in the first quarter of 2013, Union Bank reported a post tax profit of Rs.62.9 Mn for the first three months of 2013. The Bank has shown progress in its core banking operations recording growth in its Loans and Advances of 9% resulting from an increase in the loan portfolio to Rs.21.9Bn. Total deposits also increased by 7% to Rs.25.3Bn during the same period.

Interest Income grew by 34% in comparison to the comparative due to the combined reasons of increases in the loan portfolio and interest rates. Similarly, due to the increase in the deposit base and the interest rates, interest expense also reported a 70% increase. A reduction of Rs. 49 Mn in foreign exchange income was recorded in comparison to the first quarter of 2012 due to the stabilisation of the Rupee. A 16.3% increase in overheads was also reported as a result of the expansion in Branch Network and increase in Staff required for the new branches to be opened.

‘At Union Bank our focus is clear,’ says Mr. Amarasuriya. "We want to become the ‘SME Bank’ in Sri Lanka because we know our fundamentals are apt for us to add value to this consumer sector". This is in line with the Bank’s vision of becoming the preferred bank for Small and Medium entrepreneurs.

Given the unwavering focus of the SME sector by Union Bank, the Bank has rapidly expanded its presence, taking its total network to 38 branches by May 2013. "We hope to expand our network to fifty branches by the end of this year,’ said Mr. Amarasuriya. This expansion has been honed and focused and geared specially to grow Union Bank’s SME portfolio.

Realising the vital role that IT plays in customer outreach, Mr. Amarasuriya stated ‘Union Bank’s has invested in excess of Rupees 600 million to also introduce a new Core Banking System, which will complete rollout this year. This will help to give the Bank a significant upward momentum in technological advancements and assist the Bank to move towards its objective of being an IT premiered Bank in the country.’

He also commented that with the intention of accelerating Union Bank’s SME presence, a sophisticated robust risk management system was acquired enabling more responsiveness to customers. In addition the Bank has launched a host of new products and ancillary services adding value to the Bank’s promise of providing total financial solutions to SME and retail customers. To further augment its SME focus, Union Bank has also partnered German organization GIZ to improve access to finance for SMEs assisting them through banking products, procedures, methodologies, setting-up of special SME branches and SME service centres, development and organising of staff training programmes and SME customer training which will enable the Bank to sustainably enhance their credit portfolio to its SMEs customers. It will help generate employment, impact income, reduce poverty and enhance regional development."
http://island.lk/index.php?page_cat=article-details&page=article-details&code_title=79026

Galadari Hotels Lanka PLC saw losses plunge 99 percent to Rs. 5.59 million during the quarter ended March 31, 2013 from a loss of Rs. 659.14 million a year earlier helped by a huge foreign exchange gain of Rs. 13.47 million and a sharp fall in finance expenses, interim financial results filed with the Colombo Stock Exchange showed.

The foreign exchange gain comes after a massive Rs. 733.26 million foreign exchange loss suffered a year earlier.

Galadari Hotels saw revenue fall 21.85 percent to Rs. 329 million from Rs. 421 million a year earlier.

It reported an operating loss of Rs. 7.12 million as against a profit of Rs. 97.34 million a year earlier.

Net finance expenses fell 42.47 percent to Rs. 11.5 million from Rs. 19.99 million a year ago.

Interest bearing borrowings amounted to Rs. 7.05 billion as at March 31, 2013, as against Rs. 7.03 billion a year ago. Short term borrowings amounted to Rs. 429.79 million, up from Rs. 357.26 million a year earlier.

The Employees’ Provident Fund (EPF) was the second largest investor as at March 31, with a 13 percent stake in the company amounting to more than 23.7 million shares.
http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=79102

May 15, 2013 (LBO) - Profits at Sri Lanka's Nations Trust Bank rose 15 percent to 501 million rupees in the March 2013 quarter helped by fee and fund based income, interim accounts show.

The bank reported earnings of 2.18 rupees per share.

NTB group's interest income rose 35 percent to 4.35 billion rupees and interest expenses rose at a faster 45 percent, but the bank also grew net interest income 21 percent to 1.7 billion rupees.

Fee and commission income rose 15 percent to 537 million rupees. Trading income was a negative 79 million rupees in the March quarter from a positive 80 million rupees a year earlier.

Loans continued to grow a strong 6 percent in the quarter to 77 billion rupees while financial instruments held to maturity fell 31 percent to 7.0 billion rupees.

Loan loss provisions fell 49 percent to 84 million rupees.

NTB said its gross non-performing loan ratio rose to 3.15 percent by end March 2013 from 2.86 percent in December.

Deposits were flat 86 billion rupees.

Net assets were flat at 10.1 billion rupees.

NTB's core capital adequacy ratio at group level fell 12.09 percent in March from 13.82 percent in December.

Total capital adequacy fell to 14.76 percent from 17.25 percent.

Gross assets grew 4 percent 117 billion rupees
http://www.lankabusinessonline.com/news/sri-lankas-nations-trust-bank-net-up-15-pct/221958559