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

SINHAPUTHRA FINANCE, LAXAPANA BATTERIES , MARAWILA RESORTS, LANKEM DEVELOPMENTS , COMMERCIAL BANK OF CEYLON , COMMERCIAL LEASING & FINANCE , RICHARD PIERIS EXPORTS, MASKELIYA PLANTATIONS , KEGALLE PLANTATIONS , NAMUNUKULA PLANTATIONS, RICHARD PIERIS AND COMPANY , E-CHANNELLING, FINLAYS COLOMBO , F L C HOLDINGS, AGSTAR FERTILIZERS, LANKA ORIX FINANCE , BERUWELA WALK INN, HATTON NATIONAL BANK, UNION ASSURANCE, BOGAWANTALAWA TEA ESTATES , RENUKA HOLDINGS, ASIA SIYAKA COMMODITIES , HARISCHANDRA MILLS , INDUSTRIAL ASPHALTS (CEYLON), PALM GARDEN HOTELS, LANKA ORIX LEASING COMPANY , MERCANTILE SHIPPING COMPANY, RENUKA AGRI FOODS, RENUKA SHAW WALLACE, MAHAWELI REACH HOTELS, UNION BANK OF COLOMBO , SIGIRIYA VILLAGE HOTELS , EASTERN MERCHANTS , YORK ARCADE HOLDINGS, BERUWALA RESORTS, PANASIAN POWER, TANGERINE BEACH HOTELS , ROYAL PALMS BEACH HOTELS, MTD WALKERS
Interim Financial Statements for the period ended 30-09-2013 have been uploaded on the CSE website.

The Richard Pieris Group ended its first half year’s performance with a group operating profit of Rs. 1.1 billion which reported a decline when compared to the corresponding period of the previous year.

The impact of the wage increase in its plantation sector and the negative effects of the current economic downturn which has had its force on consumer spend.

The reported revenue for the group for the first half year of 2013/14 was Rs. 16.7 billion which is marginally lower than the reported figures of the previous year.

Sectoral performance: Retail sector
The retail sector of the group continued its marketing activities in challenging economic conditions and the popular ‘Privilege family beach holiday’ campaign was successfully conducted for the fourth consecutive year.

Despite the downturn in business the expansion plans are well underway in selected strategic locations. The negative sentiments on consumer confidence continued to be evident throughout the quarter under review. Therefore, the company continued to focus on managing overheads and inventory.

Plastics and distribution sector
The sector faced a range of challenges during the quarter ended 30 September 2013, which included unfavourable market conditions, bad weather and low consumer purchasing power due to adverse economic conditions.

The sector’s products do not constitute a purchase priority in daily life and this proved to be a drawback in the phase of the sluggish economy and the reduced spending power of consumers.

However, each of the sector’s SBUs continued to search for market opportunities, introduced effective competitive pricing mechanisms, focused on reducing overheads to enhance profitability levels, and focused on minimum work-in-capital investments to optimise costs.

Plantation sector
The impact of the wage increase in the last quarter in the plantation sector employees had its impact on the reported results of the period under review as well. The drop in rubber prices, poor crops and drop in export volumes affected the sector’s performance in a negative manner. On a more positive note there was a significant increase in both the crop as well as the prices obtained for oil palm.

Tyre sector
During the period under review the tyre sector, of the group reported an increase in their reported profits when compared with the results of previous year. Richard Pieris Tyre Company continued to introduce new products to the market and during the period under review the brand ‘ARL’ was introduced where it focuses on the agricultural sector.

Rubber manufacturing sector
The sector continued to prosper during the first half of financial year 2013/14 with all companies performing well to achieve their respective budgets. The latex foam business continued to thrive with a dynamic management team which enabled to maintain budgeted sales levels despite the slowdown in European markets.

Cost saving initiatives continued and the effective management of the biomass boiler helped in the saving of energy to the latex foam business.

The shoe soling business of the sector continued to improve its performance and with the exploration of new markets and the introduction of new products the business is on its way of making a turnaround.

The group continues to focus on its core sectors despite external challenges with planned expansions in its retail operations. A spokesman for the company stated that the group will bounce back with a strong performance during the second half of the year.
http://www.ft.lk/2013/11/14/richard-pieris-records-6-months-revenue-of-rs-16-7-b/

Kegalle Plantations (KGAL) reported a net profit of Rs. 125 m in 2Q14 (down 22% YoY), resulting in a net profit of Rs. 215 m for 1H14 (down 25% YoY).

Lanka Orix Leasing Company (LOLC) reported a net profit of Rs. 436 m for 2Q14 (down 55% YoY), resulting in a net profit of Rs. 589 m for 1H14 (down 61% YoY).

Panasian Power (PAP) reported a net profit of Rs. 24 m for 2Q14 (up 176% YoY), resulting in a net profit of Rs.87 m for 1H14 (up 209% YoY).

Renuka Agri Foods (RAL) reported a net profit of Rs. 61 m for 2Q14 (down 9% YoY), resulting in a net profit of Rs. 95 m for 1H14 (down 52% YoY).

Renuka Holdings (RHL) reported a net profit of Rs. 64 m for 2Q14 (up 34% YoY), resulting in a net profit of Rs.100 m for 1H14 (up 28% YoY).

Union Assurance (UAL) reported a net profit of Rs.102 m for 3Q2013 (up 54% YoY), resulting in a net profit of Rs. 291 m for 1-3Q2013 (up 31% YoY).
Source: CT Smith Stockbrokers
http://www.ft.lk/2013/11/14/corporate-earnings-update-2/

* Loan book crosses Rs. 400 billion

* Deposit growth averages Rs. 5 billion a month

Improved business volumes in the third quarter of 2013 have enabled the Commercial Bank of Ceylon to narrow the gap on its profit performance compared to the corresponding period of last year, during which translation gains on foreign exchange earnings was a major contributory factor to the bottom line.

Despite many challenges faced by the banking industry, Sri Lanka’s largest private bank posted a pre-tax profit of Rs. 10.404 billion for the nine months ended 30 September 2013, only marginally lower than the Rs. 10.660 billion recorded in the corresponding period of 2012.

Post tax profit at the end of the third quarter stood at Rs. 7.233 billion as against Rs. 7.456 billion in the first nine months of last year, the bank reported in its Interim Financial Statements.

“What these figures clearly indicate is that operationally, the bank has achieved noteworthy growth in terms of all business volumes when the industry faced many challenges,” Commercial Bank Chairman Dinesh Weerakkody said. “Due to last year’s foreign exchange gains, the gap in net profit was 20% at the end of the first quarter of the current year, and 13.5% at the end of the first half. The bank has now narrowed this gap to under 3% despite the tough conditions that prevailed.”

The bank improved gross income by Rs. 18.8 billion or 21.72% in the third quarter, accelerating the pace of growth. Gross income for first nine months period increased by 15.30% to Rs. 53.498 billion.

“The bank’s performance reflects its ability to maintain operational momentum by leveraging its focus on banking fundamentals to attract business and be competitive,” Commercial Bank Managing Director/CEO Ravi Dias said.

According to the bank’s Interim Financial Statements for the nine months ended 30 September 2013, interest income reflected a healthy growth of 20.54% to Rs. 46.146 billion, mainly due to an increase in interest earning assets during the period under review. The growth in deposits which averaged Rs. 5 billion a month resulted in interest expenses growing by 29.78% to Rs. 27.5 billion for the nine months.

Total operating income grew by 2.87% to Rs. 25.507 billion for the nine months while impairment charges for loans and other losses increased to Rs. 3.019 billion from Rs. 2.889 billion.

The increase in total expenses was restricted to 8.55%, from Rs. 9.767 billion in the first nine months of last year to Rs. 10.603 billion at the end of the third quarter of 2013.

Total deposits grew by Rs. 53.568 billion to Rs. 448.943 billion as at 30 September 2013. Gross loans and advances increased by Rs. 28.282 billion or 7.32% over the nine months to Rs. 414.698 billion, crossing the Rs. 400 billion mark. Total assets of the bank increased by 15.58% to Rs. 591.490 billion as at 30 September 2013.

The bank’s Tier I and Tier II Capital Adequacy Ratios stood at 13.11% and 16.87% respectively at the end of the review period, well above the minimum levels prescribed by the Central Bank. The Gross NPL Ratio was 4.20%, and the Net NPL Ratio 2.46%. The interest margin for the period was 4.52% while Return on Assets (before tax) and Return on Equity stood at 2.52% and 17.52% respectively.

At Group level, the Commercial Bank, its subsidiaries and associates posted pre-tax profit of Rs. 10.449 billion for the nine months reviewed. Profit after tax for the period was Rs. 7.246 billion.

The largest private bank in Sri Lanka and the only Sri Lankan bank to appear three years consecutively in the world’s Top 1,000 Banks, Commercial Bank operates a network of 232 branches and service points and a network of 576 ATMs in Sri Lanka. The bank also operates 18 outlets in Bangladesh. The bank has won multiple awards as the country’s best bank over several years.
http://www.ft.lk/2013/11/14/commercial-banks-9-month-pre-tax-profit-tops-rs-10-b/

* Post-tax profits: Up 15% to Rs. 5.34 billion

* Pre-tax profits: Up 12% to Rs. 7.47 billion

* Net interest income: Up 17% to Rs. 18.55

* Net fee/commission income: Up 15% to Rs. 3.14 billion

* Total operating income: Up 12%

HNB recorded a 15% growth in post-tax profits to Rs. 5.34 billion during the nine months ended September 2013, compared to Rs. 4.63 billion during the corresponding period in 2012, while the group post-tax profits improved by 17% to Rs. 5.84 billion over the corresponding period in 2012.

During the period under review, interest income of the bank grew by 24% to Rs. 42.05 billion compared to the nine months ended September 2012 due to a 14% YoY expansion in its loan book while interest expense recorded an increase of 31% from Rs. 17.98 billion to Rs. 23.49 billion largely on account of the YoY growth in its deposit base by 11% and increased average interest cost with the shift witnessed towards high yielding deposits.

As a result, the net interest income of the bank recorded a healthy growth of 17% from Rs. 15.91 billion in the nine months ended September 2012 to Rs. 18.55 billion in the nine months ended September 2013.
Commenting on the performance during the period under review Hatton National Bank PLC Chairperson Dr. Ranee Jayamaha stated: “Despite sluggish market conditions that prevailed during the year, the bank was successful in recording an impressive growth in NII notwithstanding a drop in net interest margins. The confidence placed by our valued customers helped the Bank to achieve improved performance.”

HNB PLC Managing Director/CEO Jonathan Alles added: “Although the demand for credit continued to remain low during the period, we are pleased to note that HNB has been successful in recording an 11% growth compared to the 5% growth recorded by the industry during the nine months ended September 2013, through its diversified product portfolio and reach.”

Net income increase
Net fee and commission income of the bank increased to Rs. 3.14 billion recording a growth of 15% during the period under review, driven by higher credit card volumes and guarantee commissions, despite slow-down in foreign trade compared to 2012.

Net losses from trading which mainly represent the revaluation of off-balance sheet swap position taken to hedge the on-balance sheet open positions created by some of the foreign borrowings over the last 20 months increased to Rs. 988 million compared to Rs. 649 million for the corresponding period of 2012.

Although the appreciation of the rupee resulted in these swaps showing a loss in the first quarter of 2013, the depreciation of the local currency during the second and third quarters reflected gains. The corresponding impact of the exchange rate fluctuations on the on-balance sheet position is recorded in other operating income.

Improvements across the board
The Bank recorded a 43% growth under Net gain/loss from financial investments due to higher dividends received from the Bank’s equity investments during the 9 months ended September 2013 compared to the previous year. Overall, the Bank recorded a 12% growth in its total operating income as at end of Q3 2013.

As at end of September 2013, HNB’s impairment provision on individually significant portfolio improved by 37%, while the collective impairment provision on individually insignificant loans increased by 190% compared to corresponding period of 2012 due to higher provision on account of pawning.

The gross NPA ratio stood at 4.6% as at end of Q3 2013 compared to 5.2% for the industry. The bank continued with its prudent policy of providing 100% on all individually insignificant loans which are overdue for more than 180 days under collective impairment.

Operating expenses of the Bank, which stood at Rs 10.51 billion during the nine months ended September 2012 decreased to Rs. 10.22 billion in the current period, recording a decrease of Rs. 287 million (3%).
This decline in operating expenses was largely due to the winding up of the Employee Share Benefit Trust (ESBT) scheme as per directions of the Colombo Stock Exchange during the second quarter.

Improvement in cost-to-income
The cost-to-income ratio of the bank improved to 46.7% for the period. However, after adjusting for the reversal of ESBT provision and for the additional provision made during the year on account of the ESOP allocations, the cost to income ratio as at end September 2013 stood at 52.5%, which is an improvement of 150bps, against the cost to income ratio of 54% during the corresponding period of 2012.

The pre-tax profits for the bank improved by 12% to Rs. 7.47 billion from Rs. 6.64 billion recorded as at end of Q3 2012, while the pre-tax profits for the Group grew by 13% to Rs. 8.01 billion compared to Rs. 7.06 billion during the corresponding period of 2012.

The group companies, HNB Assurance PLC, Acuity Partner Ltd. and Sithma Development Ltd. also contributed towards this growth.

Overall, as a result of the performance during the nine months, the bank’s Earnings per Share (EPS) grew by 15% to Rs. 13.41, while the EPS for the group grew by 17% to Rs. 14.47 compared with the previous year.

Strong core
The bank’s core capital and total capital adequacy ratio remained strong at 12.58% and 16.37% respectively as at 30 September 2013, as against the statutory minimum of 5% and 10%. The subordinated debenture of Rs. 4 billion issued in June 2013 resulted in improving the total capital adequacy position further.

During the third quarter, HNB launched mobile Point of Sale (POS) technology for the first time in Sri Lanka which is a revolutionary low cost solution. Jonathan Alles stated: “Going forward we will focus on leveraging on our advanced IT platform to deliver faster and superior service to our valued clients while improving processes efficiency through re-engineering.”
http://www.ft.lk/2013/11/14/hnb-group-records-rs-5-84-billion-post-tax-profit-for-nine-months-ended-september-2013/

As challenges in the industry continue in the third quarter of 2013 Union Bank reported a Rs. 226.8 million post tax profit for the nine month period, a decrease of Rs. 39.2 million, a 15% drop compared to the corresponding period in 2012.

The decline in profit after tax is demonstrated mainly by the increase in impairments by Rs. 136 million during the period. Year-to-date impairment provision made against pawning was Rs. 52.2 million. However, total operating income before impairments showed an increase of Rs. 140 million in comparison to the previous period.

Net Interest Income for the bank increased to Rs. 341 million during the quarter recording a 9% growth. Net Interest Margin also improved in comparison to the first two quarters of 2013 caused by a reduction in the cost of deposits due to the reduction in interest rates.

Net fee and Commission Income of the bank for nine months also showed a positive variance with a 21% increase over the comparable period and Interest income recorded an increase to Rs. 921 million at the end of the period. Total Operating Income for the nine month period also grew by 11% during the quarter versus last year.

Year to date expenses increased by Rs. 122 million which is a 15% growth compared to previous comparable period. This increase is primarily due to 32% increase in the branch network and 31% increase in number of employees compared to the comparative period in 2012. The branch network at the end of the quarter was 45.

Positive progress
Net Interest Income of the group recorded a 28% growth due to the positive progress of the bank’s subsidiary UB Finance. This also had a favourable impact on the Total Operating Income.

Total assets of the bank increased by 14% to Rs. 35.1 billion in comparison to December 2012 and the Union Bank Group also reported a 15% increase to Rs. 36.5 billion for the same period. Total equity of the bank was Rs. 5,569.7 million and net assets per share as at the reporting date is Rs. 15.95.

Gross NPLs increased to 6.94% from 5.43% in December 2012. Despite the challenging environment and lower credit growth, the loan book of the bank grew by 15% to Rs. 23.1 billion. Total deposits too increased by 18% to Rs. 27 billion.

UBC continues to deliver on its premise to the development of Small and Medium Enterprises. During the year the bank embarked on a rapid network expansion opening in excess of 11 new branches to date and its branch network is expected to exceed 50 branches by year end providing a significant upward momentum to its future growth.

The bank is currently successfully implementing a Core Banking System which will be completed by 2014.

This will bring about significant cost efficiencies through process improvements and facilitate additional functionality enabling better product and service delivery to customers. Additionally, a sophisticated and robust risk management system was also acquired to enable more responsiveness to customers.

The bank has also made significant investments in brand building initiatives.
http://www.ft.lk/2013/11/14/union-bank-records-rs-226-8-m-post-tax-profit/

ශ්‍රී ලංකාවේ පුද්ගලික අංශයේ හොදම ක්‍රියාකාරි වාණිජ බැංකු අතරේ ප්‍රමුඛයා වන කොමාර්ෂල් බැංකු සමුහයේ මේ වසරේ සැප්තැම්බර් කාර්තුවේ ස්වකිය කොටස් හිමියන්ට හිමි ලාභ පසුගිය වසරේ එම කාර්තුවට සාපේක්ෂව සියයට 21.74 කින් ඉහළ නංවා ගනිමින් රුපියල් බිලියන 2.26 සිට 2.75 දක්වා වර්ධනය කරවා ගෙන ඇත.

මෙහිදි කොටසක ඉපයුම රුපියල් 2.72 සිට රුපියල් 3.25 දක්වා සියයට 19.49 කින් ඉහළ නංවා ගෙන ඇත.එසේම බැංකුවේ කල් පසු වු ණය ඇතුළු අඩමාණ ණය වෙන්කිරිම් සැප්තැම්බර් කාර්තුවේ රුපියල් මිලියන 723.2 සිට රුපියල් බිලියන 1.2 ද්කවා සියයට 76.3 කින් වැඩි වි ඇත.

කෙසේවෙතත්,සැප්තැම්බර් 30 න් අවසන් මාස 09 තුළ බැංකුවේ ලාභ රුපියල් බිලියන 7.4 සිට 7.2 දක්වා සියයට 2.42 කින් අඩු වි ඇත. එසේම බැංකුවේ කල් පසු වු ණය ඇතුළු අඩමාණ ණය වෙන්කිරිම් සැප්තැම්බර් 30 න් අවසන් මාස 09 තුළ රුපියල් බිලියන 2.8 සිට රුපියල් බිලියන 3.0 ද්කවා සියයට 4.47 කින් වැඩි වි ඇත.


බැකුවේ ශුද්ධ පොළි ආදායම මේ වසරේ මුල් මාස 9 තුළ සියයට 9.08 කින් ඉහළ යමින් රුපියල් බිලියන 18.628 ක් වි ඇත.මෙහි තුන්වන කා්තුවේ වර්ධනය සියයට 14.53 ක් වු අතර මේ සදහා අරමුදල් පදනම් වු මෙහෙයුම් ප්‍රධාන වි ඇත.

බැංකුවේ ණය හා අත්තිකාරම් රුපියල් බිලියන 400.2 ක් වි ඇත.මෙය සියයට 7.13 ක වර්ධනයකි.සැප්තැම්බර් අවසන් වන විට තැන්පතු සියයට 13.55 කින් ඉහළ යමින් රුපියල් බිලියන 53.568 ක් වි ඇත.

මුළු වත්කම් අගය සියයට 15.58 කින් ඉහළ යමින් රුපියල් බිලියන 591.5 ක් විය.

Reference=deleted

Shareholder dividends of Lanka Orix Leasing Company (LOLC) Group during this year’s September quarter have fallen by 54% with that of last year, reports say.

According to reports, 2013 September quarterly dividends have fallen to Rs. 436.4 million from Rs. 964.5 million reported last year.

Dividends per share have declined to Rs. 0.92 from Rs. 2.03 last year.

Also, earnings per share have declined to Rs. 3.22 from Rs. 1.24 last year.

Further, impairment charges of LOLC group have increased to Rs. 1.3 billion from Rs. 135.2 last year and this is an increase of 912%.

However, the group shows a 08% gross income increase within the last six months.

Also, the asset value of the group within this time period had increased from Rs. 149.9 billion to Rs. 173.5 billion.

Despite the increase of asset value in the entire group, assets of LOLC company had fallen from Rs. 57 billion to Rs. billion 54.

Meanwhile, net profit of Lanka Orix Finance (which is a subsidiary of the group) during the 2013 September quarter has grown from Rs. 324 million to Rs. 455 million. The growth is marked as 40%.

However, during the last six months, net profits have declined from Rs. 603 million to Rs. 531 million.

Nevertheless, during the final half of the financial year of Lanka Orix Finance, Lanka Orix Micro Finance and Commercial Leasing, the profit before tax was Rs, 2.2 billion, while Mathurata and Pussellawa plantations have recorded a profit before tax of Rs. 170 million.

Also, insurance, Trade and Tourism arms of the Group have recorded profit before tax of Rs. 52 million, Rs. 87 million and Rs. 28 million respectively.

However, the power projects of the Group had recorded a loss before tax of Rs. 54 million.

Thirty percent of the LOLC group is owned by Japan’s Orix Company.

The company is administrated by Ishara Traders, owned by millionaire businessman Ishara Nanayakkara.
http://forum.srilankaequity.com/t31620-13-nov-2013-interim-financial-statements-30-09-2013

Outstanding:D 

I told you LOL