12-Nov-2013 Interim Financial Statements 30-09-2013

CEYLON LEATHER PRODUCTS, ASCOT HOLDINGS, F L C HYDRO POWER , COLOMBO LAND & DEVELOPMENT, VIDULLANKA, METROPOLITAN RESOURCE HOLDINGS , PRINTCARE , THREE ACRE FARMS, NAWALOKA HOSPITALS, CHILAW FINANCE , BALANGODA PLANTATIONS , CEYLON GRAIN ELEVATORS, LANKA ALUMINIUM INDUSTRIES , GESTETNER OF CEYLON, LAKE HOUSE PRINTERS AND PUBLISHERS, CEYLINCO INSURANCE, A I A INSURANCE LANKA, LANKA IOC , CENTRAL FINANCE COMPANY , NATIONS TRUST BANK , ACME PRINTING & PACKAGING, DISTILLERIES COMPANY OF SRI LANKA , SANASA DEVELOPMENT BANK, MADULSIMA PLANTATIONS , MULLER AND PHIPPS (CEYLON) , MALWATTE VALLEY PLANTATIONS

Interim Financial Statements for the period ended 30-09-2013 have been uploaded on the CSE website.

Nations Trust Bank Group recorded a Profit after Tax of Rs. 1,596 million for the nine months ended 30 September 2013 compared with Rs. 1,510 million in the corresponding period of the previous year.

The group recorded a commendable revenue growth of 18% for the period, which however did not translate to an equal bottom line growth due to increases in operating expenses attributable to the costs incurred on the execution of the strategic initiatives and higher impairment charges.

Core earnings were well balanced across the business pillars despite industry challenges impacting particular portfolios unfavourably.

The Central Bank enforced an easing monetary stance from beginning of the year which led to a decline in policy rates resulting in a gradual decline in interest rates as the year progressed. Such measures taken to fuel credit growth did not materialise to anticipated levels as private sector credit growth remained sluggish throughout the period under review.

Slower loan book growth led to excess funds being invested in low-yielding liquid assets with Banks witnessing a decline in NIMs. NPLs across the industry shot up with the slowdown in economic activity also leading to a substantial rise in impairment charges.

Group net interest income recorded a 33% increase over previous period with corresponding NIMs improving modestly. Yields on loans and advances came under stress due to low credit demand which was further challenged by regulatory caps on interest rates.

Deposit costs decline
The gradual decline in cost of deposits coupled with improved spreads on the FIS portfolio with the maturing of lower yielding assets positively impacted NIM movement.

Net fees and other operating income recorded a 22% growth, with an outstanding contribution coming from credit card related fees and commissions. With the slowdown witnessed in external trade, trade finance income fell below previous year level.

Net trading results amounted to a loss of Rs. 310 million for the current year mainly due to losses recorded in FX income which was partly offset by gains attributed to the FIS portfolio. The adverse movement in forward premiums resulting in negative marked to market impact on funding SWAPS resulted in FX losses for the current period. However, this adverse trend reversed towards the end of third quarter wiping out most of the losses recorded in the first six months.

Five year strategic plan
Operating expenses recorded a growth of 23% as implementation of the initiatives identified in the five-year strategic plan took place across the bank. The highest increase over the previous year and the largest contributory factor to the increase in its cost base was on account of one-off expenses incurred in the introduction and execution of productivity and cost efficiency concepts across key areas of the bank.

The bank’s NPLs ratio stood at 4.0% which recorded an increase over 2.8% reported in December 2012 which is in part due to the slower growth in the loan book whilst absolute NPLs also increased similar to the rest of the industry. Impairment charges for the nine months increased by Rs. 219 million over the previous period mainly attributable to the bank’s pawning portfolio.

Loans and deposits grow
Loans and deposits recorded a growth of 6% and 10% respectively for the nine months. These growth levels compares well with industry performance for the nine months of 5% for loans and 11% for deposits. Loan growth slowed down mainly due to the decline in the corporate portfolio which faced stiff rate competition compounded by excess liquidity and low credit demand.

Retail, SME, leasing and cards put up a solid growth despite lower credit demand. The bank continued its efforts to grow low cost balances which reaped good results recording a 22% growth and thereby improving low cost mix.

Branch expansion continued with nine new branches being opened during the nine months in identified key strategic geographies taking the network to 66 branches. With the view of enhancing customer value and productivity, the bank undertook the implementation of lean concepts across the entire organisation, by reviewing high impact, critical processes on a phased out plan during the year.

SME focus
The bank strengthened its SME proposition further with the signing of an agreement with Asian Development Bank (ADB) for a $ 15 million term lending facility. This financing agreement is specifically aimed at funding SMEs, a cause strongly supported by ADB.

The Nations Trust Debit Card was launched during the month of August adding to the bank’s array of products with the view of providing a complete suite of payment solutions to its customers.

The bank also received accolades in various spheres; top amongst the list was becoming the recipient of the award for the “Best HR Strategy in Line with Business” at the Best Employer Brand Awards 2013, held in Singapore.

Commenting on the results and achievements, Director/CEO Renuka Fernando stated: “Amidst the innumerable challenges that befell the industry during the year, our performance has been resilient, consistently demonstrating sustainable returns.

“We are optimistic on a possible turn around in demand for credit as we progress towards year 2014. Our business pillars are ably supported by a sound risk management framework, collection processes and a stable operational platform, so we are confident that we will be able to continue meeting the challenges ahead.

“We also look forward to reaping the benefits of all our efforts this year in moving to lean processes which would see further enhancements to our delivery and distribution capability after we implement our new core banking system in 2014.”
http://www.ft.lk/2013/11/13/ntb-records-rs-1-5-b-pat-on-back-of-steady-nine-month-revenue-growth/

Nov 14, 2013 (LBO) - Sri Lanka's Ceylon Grain Elevators group, which has operations in feed-milling said it returned to profits in the September 2013 quarter helped by lower soya prices despite a drop in sales.

The group reported earnings of 99 cents per share. For the nine months to September the group reported earnings of 2.26 rupees per share on total profits of 184 million rupees.

Profits of the September quarter last year were boosted by a 466 million rupees one-off gain coming from the sale of an equity stake.

In the September quarter group revenues dropped 2 percent to 9.1 billion rupees, and costs 3 percent to 8.6 billion rupees, allowing gross profits to widen 25 percent to 544 million rupees.

Chairman Cheng Chih Kwong, Primus told shareholders the demand for feed dropped in the quarter but the cost of imported soyabean meal had fallen from earlier highs helping margins.

Three Acre Farms, which has a hatchery and sells poultry products, saw profits go up 92 percent to 120 million rupees in the quarter.

The firm said layer day old chick prices had improved in the September 2013 quarter from a year earlier.

Three Acre Farms had also exported parent day old chicks and hatch able eggs to the region, helping boost margins.
www.lbo.lk

Ceylinco Insurance PLC reported a gross written premium of Rs 22.15 billion for the nine months ended 30 September 2013, up 15% from a year ago and group net profit grew 49% to Rs 900.8 million, interim financial results showed.

The basic earning-per-share was Rs 27.37 as at end September 2013, up from Rs 18.30 a year ago.
Investment and other income grew 41% to Rs 5.62 billion and insurance claims and benefits paid grew 23% to Rs 7.22 billion.

Total assets of the life fund grew to 61.8 billion as at end September 2013, up from Rs 52.9 billion as at end December 2012.

During the nine-months ended September 2013, the non-life segment reported a gross written premium of
Rs 9.45 billion, up from Rs 8.87 billion a year ago and the life insurance segment reported a gross written premium of Rs 8.27 billion, up from Rs 7.71 billion a year ago. The non-life segment generated a net profit of
Rs 247.5 million for the nine-month period, up from Rs 178.6 million a year ago, and the life segment reported a net profit of Rs 29.06 million, down from Rs 60 million a year ago.

The group's healthcare segment reported a Rs 25.7 million net profit, up from Rs 20.7 million last year, and the power generation segment made a Rs 120.1 million net profit after reporting a Rs 29 million loss the previous year.

Education services segment generated a Rs 265.02 million net profit, up from Rs 209.4 million, and the group's Male operations generated a net profit of Rs 55.82 million, up from Rs 29.5 million a year ago.
http://ceylontoday.lk/22-47493-news-detail-ceylinco-insurance-profits-up-49.html

Lanka IOC PLC reported a Rs 2.83 billion net profit for the six months ended 30 September 2013, up from Rs 1.37 billion a year ago, interim financial results filed with the stock exchange showed.

Revenue for the six-month period increased to Rs 39.23 billion, up from
Rs 38.86 billion a year ago.

Distribution costs fell to Rs 855.75 million, down from Rs 889.24 million a year ago.

Finance income grew to Rs 100.98 million, down from Rs 51.3 million and finance costs increased to Rs 309.49 million, up from Rs 155.84 million a year ago. Basic earnings-per-share amounted to Rs 5.32, up from Rs 2.58 a year ago.
http://ceylontoday.lk/22-47496-news-detail-lanka-ioc-profits-surge.html