BANKING SECTOR

Engi - In stock market robbers are first class people they robb from 3rd class people. 
dont mix emotions with market comments. imotional people can cry in home dont come here to cry.

ThilinaM wrote:Engi - In stock market robbers are first class people they robb from 3rd class people. 
dont mix emotions with market comments. imotional people can cry in home dont come here to cry.

ඔබේ දැනුම ගැන සතුටුවෙනවා. ලොකු ගමනක් යන්න පුළුවන්. ඔබට සුබ පතනවා.

https://www.lankabusinessonline.com/central-bank-issues-circular-to-banks-about-new-credit-support-scheme-for-smes/?fbclid=IwAR2hLlb1sRP2lPO-4OuIo7R9xrdGdrYt3mUkpcIiUvA_NMKqa7Q__VX3FnU

මූල්‍ය සමාගම්වලින් භාගයක්ම දුවන්නේ අමාරුවෙන්

@Teller ලගකදී දල තිබුන finance companies ගැන මට ඒ පොස්ට් එක හොයාගන්න බැරි උනා...

@colombocse, i recalled that post due to threat. Day by day democracy is a dream....

oh... Really...

@colombocse most of the people has started to deposits out from some finance companies , so closing speed will be double. The worse thing central bank even can not trace easily these companies present fake reports and ratios. As depositors /investors we must careful with our hard earned money.

Below news says 20 but actual is 21 now...

මේ වන විට රටේ තිබෙන මූල්‍ය ආයතන 42න් 20ක් පමණ අසීරුතාවයට පත්ව ඇති බවත්, ඔවුන් විසින් බැංකුවලින් ගෙන ඇති ණය පියවීම සඳහා ණය සහන පැකේජයක් ඉල්ලා තිබෙන බවත් ශ්‍රී ලංකා මහ බැංකුවේ නියෝජ්‍ය අධිපති එච්.ඒ. කරුණාරත්න මහතා පවසයි. සුළු හා මධ්‍ය පරිමාණ කර්මාන්තකරුවන් විසින් බැංකුවලින් ගෙන ඇති ණය සඳහා ලබා දී තිබෙන ණය සහන පැකේජය, මූල්‍ය ආයතනවලින් ලබා ගෙන ඇති ණය සඳහා ලබා දෙන්න කටයුතු කරනවා දැයි අද දෙරණ කළ විමසීමකට ප්‍රතිචාර දක්වමින් නියෝජ්‍ය අධිපතිවරයා මේ බව සඳහන් කළේය.

මෙහිදී වැඩිදුරටත් අදහස් දැක්වූ ශ්‍රී ලංකා මහ බැංකුවේ නියෝජ්‍ය අධිපති එච්.ඒ. කරුණාරත්න මහතා,

“ඔබ මූල්‍ය ආයතන ගැන අධ්‍යයනයක් කළොත් පෙනේවි, රටේ තියෙන මූල්‍ය ආයතන 42න් 20ක් පමණ ගොඩාක් අසීරුතාවයට පත්වෙලා තියෙනවා. ඒ නිසා දැනට තියෙන තත්ත්වය උඩ, අපට ෆිනෑන්ස් කම්පැනි කිහිපයකින් කිව්වා බැංකුවලින් ගත්තු ණය ගෙවීම සඳහා ඒ ගොල්ලන්ටත් Moratorium එකක් ලබා දෙන්න කියලා. ඒ වගේ අවස්ථාවක දී මෙය (ණය සහන පැකේජය) තවදුරටත් ව්‍යාප්ත කරන්න පුළුවන් වෙවි කියා අප සිතන්නේ නැහැ. නමුත් එහෙම හැකියාවක් තියේද කියා අපි බලාගෙන යනවා.“

මේ සම්බන්ධයෙන් අදහස් දැක්වූ ශ්‍රී ලංකා මහ බැංකුවේ ජ්‍යෙෂ්ඨ නියෝජ්‍ය අධිපති ආචාර්ය නන්දලාල් වීරසිංහ මහතා පැවසුවේ, මූල්‍ය ආයතනවල ණයවලින් බහුතරය එනම් 50%ක් පමණ ලීසිංවලින් සමන්විත වන බවයි. “ලීසිං එකක්, term loan එකක් වගේ නැවත ප්‍රතිව්‍යූහගත කරන්න අමාරුයි. එය සංකීර්ණ දෙයක්“, යැයි ජ්‍යෙෂ්ඨ නියෝජ්‍ය අධිපතිවරයා කියා සිටියේය.

"මූල්‍ය ආයතනවල ණයවලින් බහුතරය එනම් 50%ක් පමණ ලීසිංවලින් සමන්විත වන බවයි". As per latest info 1.1 million on vehicles are subject to Cease. 2 or above installments have not been paid (due). To protect the industry , government can do 2 things. Again hike vehicle taxes or grant loans to finace companies . But both are difficult in this situation .

Vfin will increase divident this time

Apart from HNB, Sampath & Commercial what will be the next best banking share ?

what about SEYB, NTB ,NDB( i own only SEYB but after 300ML loan amendment, i have sold all bank and finance)

now my idea to buy SAMP only when it come 100 or less (may be 2020 i'll not buy any bank and finance)


but my main focus is following sectors Energy, Food, household.

Food can be good, in future we can expect low prices of raw materials . Energy ,telecommunications also, and part of Manufaturing also to be considered as good

AsithaDe wrote:Apart from HNB, Sampath & Commercial what will be the next best banking share ?

NDB, I think

Thanks EquityPlus & ColomboCSE. Highly Appreciate Other members sentiments as well.

it's really good @EquityPlus keep it up. if you doing this continuously you are saving lots of my time.   Thanks

Sorry I have't time to explain capital expenditure. mainly for my Calc i'm using "maintenance capital expenditures". 

for banks this time i'm mainly worry about  NPL,

Code:

Nonetheless the Bank’s NPL ratio as at 31st December 2019 increased to 6.37% from
3.69% recorded in 2018. The banking industry NPL also recorded a significant increase from 3.4% in
2018 to 4.7% as at 31
st December 2019 due to the poor performance of construction, tourism and
trading sectors which were badly affected in 2019 due to a combination of factors mentioned
previously.


I use 15% for NPL.

ColomboCSE wrote:it's really good @EquityPlus keep it up. if you doing this continuously you are saving lots of my time.   Thanks

Sorry I have't time to explain capital expenditure. mainly for my Calc i'm using "maintenance capital expenditures". 

for banks this time i'm mainly worry about  NPL,

Code:

Nonetheless the Bank’s NPL ratio as at 31st December 2019 increased to 6.37% from
3.69% recorded in 2018. The banking industry NPL also recorded a significant increase from 3.4% in
2018 to 4.7% as at 31
st December 2019 due to the poor performance of construction, tourism and
trading sectors which were badly affected in 2019 due to a combination of factors mentioned
previously.


I use 15% for NPL.

Thanks for your comment ColomboCSE. I should also mention that value of a company may change from one month/week ahead of now. Given the dynamic situation of the economic condition around the world, the valuation of companies is likely to change quite frequently. Now that Moody's have decided to review SL's credit rating, it means that equity risk of the country is higher compared to what it was before

Based on Moody's rating, SL as a country has a default risk at the sovereign level. Which means the risk-free rate that we normally consider (generally, 10 or 20 years government treasury bond rate) should further be adjusted for country credit spread

EquityPlus wrote:

This is what we really need...something we can learn from and get information from to make better decisions. Something from which beginners can learn. Not someone's 'i know everything' and 'said is said' pora talks or political ass-kissing bullshit.

Thanks Equityplus.

Equityinvestor wrote:

EquityPlus wrote:

This is what we really need...something we can learn from and get information from to make better decisions. Something from which beginners can learn. Not someone's 'i know everything' and 'said is said' pora talks or political ass-kissing bullshit.

Thanks Equityplus.

It's really encouraging to see your comments and they certainly motivate me to do more videos of this nature. I'm trying to come up with a value for an entity based on these valuations and there may be certain improvement area and mistakes to correct in my videos as well. But, I will do my best to educate you as much as I can. Thanks again

Banks are partly own by foreign investors.
 
Samp Major Share holders
 
Ø  Morgan Stanley and Co.LLC-RWC Frontier Markets Equity Master Fund
Ø  State Street Luxembourg C/O SSBT - Alliancebernstein Next 50 Emerging Markets (Master) Fund SICAV-S
Ø  Pemberton Asian Opportunities Fund
Ø  Citi Bank Newyork S/A Norges Bank Account 2
Ø  BBH-Matthews Emerging Asia Fund
Ø  Rosewood (Pvt) Limited - Account No.1
Ø  Ayenka Holdings Private Limited
Ø  BBH-Matthews International Funds-Matthews Asia Growth Fund
Ø  SSBT-AL Mehwar Commercial Investments L.L.C.
 
 
HNB top foreign shareholders.
 
Ø  PMLU-Franklin Templeton Investment Funds
Ø  Standard Chartered Bank Singapore S/A HL Bank Singapore Branch
Ø  SSBT-Al Mehwar Commercial Investments LLC
Ø  RBC Investor Services Trust - RBC Emerging Markets Small-CAP Equity Fund
Ø  HSBC Intl Nom Ltd-CMG First State Global Umbrella Fund PLC - CMG First State Indian Subcontinenet Fund
Ø  BNYM SANV Re-IF Ruffer Total Return Fund
Ø  JPMCB-Scottish Orl SML TR GTI 6018
Ø  RBC Investor Services Bank - COELI SICAV I - Frontier Markets Fund
Ø  CitiBank Newyork S/A Norges Bank Account 2
Ø  Morgan Stanley and Co. LLC - RWC Frontier Markets Equity Master Fund
Ø  Citi Bank Newyork S/A Norges Bank Account 2
Ø  UBS AG Zurich
Ø  JPMLU-Franklin Templeton Investment Funds
Ø  BNYM SA/NV Re-Frontaura Global Frontier Fund LLC
Ø  BNYM SA/NV Re-Neon Liberty Lorikeet Master Fund LP
Ø  BNYM SA/NV Re-IF Ruffer Total Return Fund
Ø  BNYM SA/NV Re-IF Ruffer Absolute Return Fund
Ø  CB Europe PLC LUX S/A Dunross & Co. AB
 
Comb major foreign shareholders
 
Ø  Deutsche Bank AG Singapore - DSS A/C Ntasian Discovery Master Fund
Ø  CB NY S/A International Finance Corporation
Ø  Citibank Newyork S/A Norges Bank Account 2
Ø  JPMCB - T Rowe New Asia Fund
Ø  BNYMSANV RE - First State Investments ICVC - Stewart Investors Indian Subcontinent Sustainability Fund
Ø  BPSS LUX - Aberdeen Standard SICAV I - Asia Pacific Equity Fund
Ø  BNYMSANV RE - LF Ruffer Investment Funds : LF Ruffer Pacific and Emerging Market Fund
SSBT-BMO Investments II (Ireland) Public Limited Company

heading into trouble waters in the coming months

As Banking Sector has slowed down due to IR reductions and restrictions by the CBSL , What is the best bank secured and minimum impact due to restrictions. Answer is NDB.

shihan 93 wrote:As Banking Sector has slowed down due to IR reductions and restrictions by the CBSL , What is the best bank secured and minimum impact due to restrictions. Answer is NDB.

Can you prove your answer? NDB will have to face highest impact.

Love Boy wrote:

shihan 93 wrote:As Banking Sector has slowed down due to IR reductions and restrictions by the CBSL , What is the best bank secured and minimum impact due to restrictions. Answer is NDB.

Can you prove your answer? NDB will have to face highest impact.

NO @LoveBoy, First lets take the loans they have, In this it clearly shows NDB and DFCC having best credit profiles that have the least impact due to CBSL restrictions, Also NDB has the best bad debt to bad loans ratio, Also I looked into present share holders, where I could still see DFCC having a foreign equity still, Also NDB's employees given share saver scheme @ Rs90 before their last rights issue. This is a big indication that NDB internal management having confidence. Thats why I emphasis that NDB is the best to invest of of the banking sector. Pls do ur own research before invest, tc

shihan 93 wrote:

Love Boy wrote:

shihan 93 wrote:As Banking Sector has slowed down due to IR reductions and restrictions by the CBSL , What is the best bank secured and minimum impact due to restrictions. Answer is NDB.

Can you prove your answer? NDB will have to face highest impact.

NO @LoveBoy, First lets take the loans they have, In this it clearly shows NDB and DFCC having best credit profiles that have the least impact due to CBSL restrictions, Also NDB has the best bad debt to bad loans ratio, Also I looked into present share holders, where I could still see DFCC having a foreign equity still, Also NDB's employees given share saver scheme @ Rs90 before their last rights issue. This is a big indication that NDB internal management having confidence. Thats why I emphasis that NDB is the best to invest of of the banking sector. Pls do ur own research before invest, tc

@ shihan 93, You haven't factored the primary dealerships held by banks in to your calculations. Even though banks lose money by interest rate cuts, Primary dealers usually make merry when the interest rates drop by trading government bonds in the secondary market. That it self is a massive profit for primary dealers. If you come to a conclusion about a bank's profit just by analyzing Interest based earnings, you are wrong. Just imagine the amount of daily trades all the banking institutes make in CSE.Almost 3 to 4 banks are among the highest traded stocks in CSE on a daily basis. You think all the buyers don't know that the IR cuts affect banks earnings??

Another thing is that Debt Moratorium actually works in the favor of banks rather than the debtors because debtors will have to pay an additional interest based on the remaining capital once the moratorium period is over. Having considered all these, all banks stand to gain in near future and hence the justification for the daily high volume trading in Banks specially banks like COMB, SAMP, UBC and PABC which are all certified primary dealers.

dayandacool wrote:

shihan 93 wrote:

Love Boy wrote:

shihan 93 wrote:As Banking Sector has slowed down due to IR reductions and restrictions by the CBSL , What is the best bank secured and minimum impact due to restrictions. Answer is NDB.

Can you prove your answer? NDB will have to face highest impact.

NO @LoveBoy, First lets take the loans they have, In this it clearly shows NDB and DFCC having best credit profiles that have the least impact due to CBSL restrictions, Also NDB has the best bad debt to bad loans ratio, Also I looked into present share holders, where I could still see DFCC having a foreign equity still, Also NDB's employees given share saver scheme @ Rs90 before their last rights issue. This is a big indication that NDB internal management having confidence. Thats why I emphasis that NDB is the best to invest of of the banking sector. Pls do ur own research before invest, tc

@ shihan 93, You haven't factored the primary dealerships held by banks in to your calculations. Even though banks lose money by interest rate cuts, Primary dealers usually make merry when the interest rates drop by trading government bonds in the secondary market. That it self is a massive profit for primary dealers. If you come to a conclusion about a bank's profit just by analyzing Interest based earnings, you are wrong. Just imagine the amount of daily trades all the banking institutes make in CSE.Almost 3 to 4 banks are among the highest traded stocks in CSE on a daily basis. You think all the buyers don't know that the IR cuts affect banks earnings??

Another thing is that Debt Moratorium actually works in the favor of banks rather than the debtors because debtors will have to pay an additional interest based on the remaining capital once the moratorium period is over. Having considered all these, all banks stand to gain in near future and hence the justification for the daily high volume trading in Banks specially banks like COMB, SAMP, UBC and PABC which are all certified primary dealers.

Thanks for your Info. It means,we have to face another hit when rate tries to pick up near future. This will be double negative hit to the banks and finance sector. After,Rates try to rise.