FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ 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
FINANCIAL CHRONICLE™️
www.srilankachronicle.com


Join the forum, it's quick and easy

FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ 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
FINANCIAL CHRONICLE™️
www.srilankachronicle.com
FINANCIAL CHRONICLE™
Would you like to react to this message? Create an account in a few clicks or log in to continue.
FINANCIAL CHRONICLE™

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka

LISTED COMPANIES

Submit Post



Poll

Can there be another Covid-19 wave in Sri Lanka?

LRA reaffirms Pan Asia Bank’s BBB+ rating, Outlook Stable  Vote_lcap68%LRA reaffirms Pan Asia Bank’s BBB+ rating, Outlook Stable  Vote_rcap 68% [ 178 ]
LRA reaffirms Pan Asia Bank’s BBB+ rating, Outlook Stable  Vote_lcap18%LRA reaffirms Pan Asia Bank’s BBB+ rating, Outlook Stable  Vote_rcap 18% [ 47 ]
LRA reaffirms Pan Asia Bank’s BBB+ rating, Outlook Stable  Vote_lcap13%LRA reaffirms Pan Asia Bank’s BBB+ rating, Outlook Stable  Vote_rcap 13% [ 35 ]

Total Votes : 260

STOCK MARKET TRAINING
ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post


CONATCT US


Send your suggestions and comments

* - required fields

Read FINANCIAL CHRONICLE™ Disclaimer



Latest topics

» LOLC Asia Private Ltd Listing before end 2021
by Swissinvest Today at 10:39 am

» LIOC - Indian Oil Kingpin
by kanishkaecomm Today at 10:15 am

» Exit SEMB If you are in profit good time to realise your profit
by Peris.G Today at 9:51 am

» Lanka Milk Foods PLC
by buddikasmart Today at 9:22 am

» LOLC Group Share Rise Imminent
by Swissinvest Today at 9:14 am

» SCAP 33% Upside Potential
by Swissinvest Today at 9:09 am

» ALLIANCE FINANCE COMPANY PLC (ALLI.N0000)
by buddikasmart Today at 9:08 am

» CLC and LOFC pump and dump
by Gowri123 Today at 7:56 am

» SUNSHINE HOLDINGS PLC (SUN.N0000)
by Biggy Yesterday at 10:27 pm

» CLC placed on a Slingshot . . . !!!
by stockchaser Yesterday at 10:15 pm

» TOKYO CEMENT COMPANY (LANKA) PLC
by soileconomy Yesterday at 10:03 pm

» LIOC WILL HIT TO 38+++
by nish84 Yesterday at 10:03 pm

» Next valuable share - CIC
by cseguide Yesterday at 9:07 pm

» CLC - worth the Investment
by Winner123 Yesterday at 8:44 pm

» LOFC Direction
by Hope123 Yesterday at 8:00 pm

» SEMB.N and SEMB.X
by bkasun Yesterday at 7:11 pm

» BAIRAHA FARMS PLC (BFL.N0000)
by lion Yesterday at 5:28 pm

» Hidden Gem - GLAS - 40/- Soon
by sandamal Yesterday at 2:12 pm

» penny stock rally started
by bkasun Yesterday at 1:47 pm

» COMMERCIAL CREDIT AND FINANCE PLC (COCR.N0000)
by Gaudente Yesterday at 1:04 pm

EXPERT CHRONICLE™

MARKET CHAT


CHRONICLE™ ANALYTICS


ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)


CHRONICLE™ YouTube

LATEST TWEETS

You are not connected. Please login or register

FINANCIAL CHRONICLE™ » DAILY CHRONICLE™ » LRA reaffirms Pan Asia Bank’s BBB+ rating, Outlook Stable

LRA reaffirms Pan Asia Bank’s BBB+ rating, Outlook Stable

Go down  Message [Page 1 of 1]

Melissa Pereira


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics

The local unit of the world’s leading credit rating agency Standard & Poor’s (S&P), Lanka Rating Agency (LRA) this week re-affirmed its rating on Pan Asia Banking Corporation PLC’s (PABC) long and short-term financial institution ratings at BBB+ and P2 respectively.
The bank’s rating re-affirmation is mainly supported by its average asset quality, performance, capitalisation and liquidity, LRA said releasing its rating review.  
For the Financial Year Ended (FYE) December 31, 2014 the bank increased its net profits by 265% to Rs. 415.2 million on the back of a 34% loans and receivables growth – the highest among LCBs in 2014.
Continuing the momentum, the bank posted a net profit of Rs. 177 million, recording an increase of 106% year-on-year (yoy) for the quarter ended 31 March 2015 (1Q’15) on the back of a further 10% growth in its loan book.
As at the end of 1Q’15 the bank has a loan book of Rs. 69.2 billion and an asset book of Rs. 81 billion.  
Meanwhile for the FYE Dec-2014 the deposits have grown by 20.5% to Rs. 65 billion and it accounted for 83.5% of the funding mix. Most notably the low cost fund base measured through the bank’s current and Savings Account (CASA) base has grown up to 31% from 19% a year ago.  
This growth has largely driven by the retail and small and medium enterprise segments but well supported by the growth in the corporate banking unit, particularly by increasing the fee based incomes in a concerted effort to diversify the bank’s income sources. The bank’s fee and commission income has grown by as much as 46% yoy to Rs.207.1 million during 1Q’15.
The bank’s net interest income increased 30.8% in FY 2014 while the NIM increased to 3.8% from 3.4% a year ago. This is at a time when the market’s key interest rates were coming down and the banking sector NIMs were coming under pressure.
By the end of 1Q’15 NIM has further risen to 4.3%.
“It is noted that, with shorter-term deposits re-pricing and the growth in CASA deposits; the reduction in the cost of deposits outweighed the reduction in loan yields leading to an increase in NIM,” LRA stated.
A notable improvement has been made in the bank’s Return on Equity (RoE), where the RoE has increased up to 9.8% by FYE Dec-2014 from 2.9% at the beginning of the year. The ratio was further improved to 14.9% by end of 1Q’15 demonstrating the bank’s continuous commitment to enhance its shareholder returns.
A key efficiency ratio, the cost to income ratio has been brought down to 61 % by FYE Dec-2014 from 69% a year ago. This has further come down to below 60% by the end of 1Q’15 demonstrating the improving efficiency levels in all operations of the bank.
Further the Return on Assets (RoA) has been increased to 0.6% by FYE Dec-2014 from 0.2% at the beginning of the year. This has further improved to 0.9% by end 1Q’15.
Meanwhile, during FY 2014, the bank has improved its asset quality as its gross Non-Performance Loan (NPL) ratio has declined to 5.73% from 8.01% at the beginning of the year.
The bank has also overcome all of its pawning related asset quality issues seen in 2013 continued till the 1H of 2014 which occurred as a result of the plunge in the global gold prices. The management has now taken a cautious approach towards the gold backed loans and is now only limited to very short term tenors in a bid to manage volatility, should they occur.
“The bank’s gross NPL coverage ratio stood at 94.93% as at FY end-Dec 2014 improving from 70.81% as at end-Dec 2013. The bank’s coverage levels are considered to be in line with industry peers. Overall, PABC’s asset quality is viewed as average owing to a loan portfolio risk profile, non-performing loans ratio and coverage ratio which is in line with its peers,” the rating agency opined.
The bank’s liquidity profile as well as capital adequacy levels stood above the regulatory minimums. The statutory liquid asset ratio clocked in at 21.42% as at FYE Dec-2014 whereas the regulatory minimum is 20%.
Both Tier I and Tier II capital adequacy levels also stood at 8.97% and 14.19% respectively as at FYE Dec-2014, above the regulatory minimums of 5% and 10% each.  
“These capital ratios are deemed to be average in view of the bank’s planned credit expansion strategies,” LRA stated.
Underpinned by this performance, the bank is now planning to raise Rs.4 billion through a 3 and 4 year listed senior debenture issue to expand its loan book and to minimise the maturity mismatches in its assets and liability portfolio.
The proposed debenture issue is also assigned with a rating of BBB+, in line with the bank’s long-term ratings.   
In October 2014 Pan Asia Bank issued a five-year subordinated debentures issue for Rs. 3 b with a rating of BBB, which was oversubscribed on the opening day itself.  
LRA, formerly known as RAM Rating Lanka, is a technical affiliate of CRISIL India (CRISIL). CRISIL is a global analytical company providing ratings, research, and risk and policy advisory services. CRISIL is India’s leading ratings agency and is also the foremost provider of high-end research to the world’s largest banks and leading corporations.
CRISIL’s majority shareholder is S&P. S&P, a part of McGraw Hill Financial (formerly The McGraw-Hill Companies), is the world’s foremost provider of credit ratings.
Courtesy: Daily Financial Times 26 May 2015

Back to top  Message [Page 1 of 1]

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