SEYLAN BANK PLC - SEYB- DIVIDEND ANNOUNCEMENT 26 February 2014

DIVIDEND ANNOUNCEMENT   
26 February 2014
Date of Announcement: - 26.Feb.2014
Dividend per Share: - Rs. 2.25 per share / First & Final Dividend
Financial Year: - 2013
Shareholder Approval: - Required
AGM: - 31.Mar.2014
XD: - 01.Apr.2014
Payment: - 09.Apr.2014
Share Transfer Book Open

NTB’s after tax profit tops Rs. 2 b in 2013

Nations Trust Bank Group recorded a profit after tax of R. 2,127m compared with Rs. 1,951 m in the previous year, a moderate earnings growth of 9%.
The performance was evenly balanced across the business pillars with results demonstrating good underlying momentum despite industry challenges faced in a subdued macro-economic environment. The modest financial performance recorded by the bank was underpinned by a well-diversified business mix minimising earnings volatility and offsetting economic headwinds seen in multiple areas.
The year commenced with weakening credit demand leading to higher liquidity and loan growth falling below anticipated levels in the banking system. The policy rate cuts affected at frequent intervals, to fuel credit growth led to a gradual decline in interest rates as the year progressed.

Slower loan book growth led to excess funds being invested in low-yielding liquid assets with banks witnessing a decline in Net Interest Margins. Non Performing Loans across the industry shot up with the slowdown in economic activity also leading to a substantial rise in impairment charges.
Across the industry NIMs depleted due to the increase in asset yields not commensurating with the rising cost of deposits. The lack of credit demand resulted in excess liquidity being invested in lower yielding Government securities.

Seylan reports Rs. 2.3 b profit after tax for 2013

Seylan Bank’s Profit after Tax reached a record Rs. 2,315 million compared to the Rs. 2,064 million reported in 2012, an impressive 12% growth in PAT for the year ended 31 December 2013.
Profit after Tax for Q-4 2013 (final quarter) was reported at Rs. 780 million as compared with Rs. 466 million for the same period last year reflecting a growth of 67% over Q-4 last year.
Despite slow credit growth and industry wide pressure on interest margins, Net Interest income increased from Rs. 9,014 million to Rs. 9,830 million for the 12 months ended 31 December 2013. Fee and Commission income increased 25.5% from Rs. 1,695 million to Rs. 2,127 million showing a consolidation of the solid growth in core banking activities achieved by Seylan Bank over the past few years.
During the year under review the bank also focused considerably on cost containment.  As a result of many effective cost containment initiatives, total other expenses were reduced by 6% from Rs. 3,299 million in 2012 to Rs. 3,091 million in 2013. Total personnel expenses increased by 13%, due to a salary revision granted to all staff at the beginning of the year.

The bank also successfully implemented a core banking system upgrade in February 2013.  This will have significant cost efficiencies through process improvements to the bank in the coming years. The upgrade will also facilitate many additional functionalities, enabling better product and service delivery to its customers.
The bank grew its deposits base by 14% from Rs. 146.7 billion to Rs. 167.3 billion during 2013 and its net advances portfolio by 9.5% from Rs. 124.7 billion to Rs. 136.6 billion during the year under review.
Even more significantly, despite an industry wide trend of deteriorating asset quality, Seylan is one of the few Banks who was able to improve its asset quality through effective recovery and rehabilitating efforts which resulted in a significant reduction in its Gross NPA (net of IIS) from 12.99% in December 2012 to 10.58% as at end December 2013.

Empire Teas produces official tea caddy souvenirs for Sochi 2014 Winter Olympics

In a landmark accomplishment, which has brought both fame and honour to Sri Lanka, leading tea exporter Empire Teas marked its presence at the Sochi 2014 Winter Olympics as a producer of the official tea caddy souvenirs for this year’s games.
Empire Teas, which is one of the leading tea exporters to Russia over the past few years, was selected by JSC Russian Railways, a National Partner of the Sochi 2014 Winter Olympics, to produce the tea caddy souvenir for the 2014 Winter Olympics currently being held in the Russian coastal town Sochi.
The attractive metal caddies featuring this year’s games mascots, The Polar Bear, The Leopard and The Hare, contains a special blend of Ceylon Orange Pekoe tea, which has been specially created for the Olympic souvenirs.

SEC Chief tells investors to look to fundamentals than merely following the herd

• Says problem is in institutional investors for behaving as followers
• Commends local capital market for having fundamentals in place although not “big league” yet
• Notes local equity market a “compelling one,” opines next target reaching market cap of 50% of GDP

By Shabiya Ali Ahlam
With the Colombo stock market turning bearish in recent weeks, Securities and Exchange Commission (SEC) Chairman Dr. Nalaka Godahewa on Wednesday urged investors to look at fundamentals rather than merely following the herd instinct.
“Most industries are doing well and showing high potential for growth and it is time for us to look at fundamentals and facts over mere trends,” said SEC Chairman Nalaka Godahewa during his address at the Capital Market Conference (CAPM) 2014 organised by UTO Edu Counsult.
Godahewa highlighted that the booking of profits by large foreign players often results in a drop of the market index, which is misunderstood as the beginning of a market downturn, leading people to hit the panic button. Their negative market behaviour then results in a negative trend, he said.
“The problem with retail investors anywhere in the world is that they are mere followers of market trends. They buy when the indices show positive signs and sell when indices show negative signs. This has always been a fact in our market. You can’t blame them. The problem is when our institutional investors also behave the same way. Some of them repeatedly miss opportunities in the market as a result,” asserted Godahewa.
Acknowledging that the local capital market was yet to reach its full potential, the SEC Head however commended it for getting the fundamentals right.
Listing out four pillars essential for the successful development of a capital market – macroeconomic stability, a sound and efficient banking system, solid institutional frameworks, and adequate regulation and supervision – Godahewa expressed: “Even though the capital market of Sri Lanka is still not in the big league, we can proudly say that we already have these fundamentals in place.”

HNB surpasses Rs. 500 b in assets, Rs. 10 b in PBT

Hatton National Bank (HNB) said yesterday it has succeeded in being resilient in 2013 despite the year being one of most challenging for the financial services industry.
“The year 2013 was one of the most challenging years faced by the financial services industry with demand for credit remaining low, margins coming under pressure, asset quality continuing to deteriorate and declining gold prices affecting the pawning business,” HNB said in a statement.
In this backdrop, HNB has successfully weathered the challenges as demonstrated by its credit growth of 16.8% which is well over the industry growth of 8.8%, above industry interest margins, NPA ratio of 3.6% compared to 5.6% for the banking sector and pawning NPA of 1.1% for the Bank against the industry average of 12.7%.
Commenting on the 2013 performance, HNB Chairperson Dr. Ranee Jayamaha stated: “Year 2013 has been one in which our sustainable business model and the collective skills of our team have been put to test on many fronts. The results speak for themselves and are testimony of the resilience of the bank and the collective strength in responding to change and remaining focused.”
Interest income which is by far the largest contributor to the Bank’s total revenue grew by 18% to Rs. 55.7 b driven by the aggressive credit growth achieved by the Bank. While the high interest rates witnessed during major part of 2013 also contributed towards the growth in interest income, the interest write-offs from pawning advances had an adverse impact.

HSBC and Sampath Bank dial $ 100 m deal for SLT

HSBC and Sampath Bank PLC yesterday announced the successful completion of a US$ 100 million five-year term loan facility for Sri Lanka Telecom PLC to upgrade its telecom infrastructure.
HSBC acted as Lead Arranger and together with Sampath Bank participated in raising this loan.
HSBC Sri Lanka and Maldives CEO Patrick J. Gallagher said: “This further demonstrates HSBC’s capability in structuring and arranging deals of this nature. SLT is a key name in the country and for HSBC Sri Lanka as well, and we hope this will further strengthen our relationship and steer SLT towards achieving their development objectives for the benefit of the country.”
This deal stands testimony to HSBC Sri Lanka’s strong track record and capabilities in syndicated debt financing and corporate banking capabilities. It also reaffirms HSBC’s continued commitment to the development of the local telecommunication industry.
Sampath Bank PLC Managing Director Aravinda Perera said: “We have always been an active partner with SLT, providing an internet payment gateway and solutions to SLT’s client base, conveniences via banking channels harnessing Sampath’s edge in technology. Also Sampath Bank has over the years been a partner in syndicated financing for the SLT Group.”

SLIIT 12th Annual Convocation on 27 and 28 February 2014

SLIIT, the leading degree awarding institute will recognise over a thousand undergraduate and postgraduate students at its 12th Annual Convocation. The ceremony will take place at the SLIIT campus in Malabe on 27 and 28 February 2014.
Six local and foreign distinguished personalities will deliver the convocation addresses during the six planned sessions. SLIIT academics, distinguished guests, graduands and their parents will adorn this grand occasion. SLIIT, the largest degree awarding institute will confer the following degrees at its 12th  Annual Convocation;

Samsung debuts wearables and Galaxy S5

Reuters: Samsung Electronics this week unveiled a new smartwatch and fitness band along with the latest version of its Galaxy smartphone, demonstrating how the battleground for innovation is shifting from the hand to the wrist.
The world’s biggest smartphone maker set a trend less than six months ago for wearable devices that link to mobile handsets with its Galaxy Gear watch, which has seen rivals like Sony and Huawei follow in its wake.
The switch in focus also underlines the challenges the South Korean firm is facing. Low-price Chinese rivals are churning out products that look increasingly similar at a time when smartphone sales have started to ease, taking a toll on Samsung’s earnings.
To fight back, Samsung is taking a less glitzy marketing approach to control costs. It has also performed a U-turn, abandoning its previous heavy focus on sweeping hardware improvements to highlight more subtle features in its devices and accessories in a bid to appeal to a wider audience.
“With the Galaxy S5, Samsung is going back to basics,” JK Shin, co-chief executive and president of Samsung’s mobile business, told an audience of Samsung employees, partners and media at the annual Mobile World Congress technology trade show in Barcelona. Samsung will roll out the S5 globally on April 11, with pricing details yet to be disclosed.

Bajaj to launch four-wheel vehicle but it’s not a car

Reuters: It’s got four wheels and seatbelts, but Bajaj Auto, the creator of India’s first quadricycle, would rather you didn’t call it a car.
Bajaj Auto is marketing the RE60 as a more stable and comfortable alternative to the three-wheeled auto rickshaws ubiquitous on India’s roads even though it looks like a small hatchback car and is expected to cost less.
Weight, top speed and other specifications, including safety standards, mean the RE60 will not be classified as a car. But that didn’t stop executives from top automakers such as Tata Motors from comparing it to a car and finding its safety features come up short.
Rajiv Bajaj, the company’s managing director, insists the RE60 is neither a car nor an auto rickshaw. The government is even creating a new classification category for the vehicle, which is expected to be launched within months.

 


“In every market that a three-wheeler is available the quadricycle should be relevant,” Bajaj told Reuters in a phone interview. “Because at the end of the day it provides a very logical upgrade from a three-wheeler for people who want to pay a little more and want to have the comfort and safety of four wheels, four doors, a roof and seatbelts,” he said.

Bourse recovers on bargain hunting; John Keels leads

REUTERS: Sri Lankan shares recovered from a near 10-week closing low on Wednesday on bargain hunting in beaten down shares, snapping a nine-session falling streak, led by the top conglomerate John Keells Holdings.
Foreigners investors bought the island nation’s risky assets on a net basis in an oversold market. The main stock index gained 0.63%, or 36.89 points, to close at 5,872.81, up from its lowest close since 18 December hit in the previous session. The index dropped nearly 7% in the last 15 sessions through Tuesday and has been in oversold territory since Friday, Thomson Reuters data showed. Foreign investors bought a net Rs. 24.5 million of shares on Wednesday, but the bourse has suffered outflows of Rs. 5.41 billion in the past 14 sessions as some offshore funds exited the market.
]It has seen a net Rs. 4 billion of foreign outflows in 2014, after enjoying net inflows of Rs. 22.88 billion last year.

Vidullanka starts Rs. 440 m new mini hydro project

Vidullanka (VLL) announced that it has commenced construction of 1.75MW Rideepana MHPP at an investment of Rs. 440 million in the Badulla District.
The company said that the Rideepana MHPP will be owned by Rideepa Hydro power a fully owned subsidiary of VLL. The power plant is expected to supply 5.7GWh of environment friendly electricity to the national grid.

Touchwood plants guarantees for settlement in Court

Case No. 31/2013/CO filed by K.A.D.L.P. Nanayakkara to wind-up Touchwood Investments PLC was taken up in the Commercial High Court of Colombo on 25 February 2014 where counsel for the Petitioner, the Company sought to be wound up (Touchwood Investments PLC), Securities Exchange Commission, and many other investors of the Company were present in Court.
The CEO of the Company sought to be wound-up, Lanka Kiwlegedara, was also present with few other representatives of the Company. The case was called on 25 February for the purpose of recording a default clause to the terms of settlement recorded in court and for the purpose of filing a list of investors who will be settled in full by the Company sought to be wound-up.
Despite many speculations that the CEO of the Company has left the country to escape from the responsibilities and liabilities undertaken by him, he was present in Court when the case was taken up on 25 February 2014.
Counsel for Touchwood Investments PLC Harsha Amarasekera submitted that the cheques issued for the value of the 1st instalment payable to the Petitioner and seven other creditors will be honoured. Counsel further submitted that property (land) worth approximately Rs. 300 million will be kept as security before the payment of the second instalment. The value of the said property and details of the deeds are to be presented to court on 6 March 2014.

No Facebook ban –Sri lankan President

President Mahinda Rajapaksa yesterday denied his Government was planning to ban the prominent social media platform Facebook.
“We want people to understand social media’s powerful advantages as well as its potential dangers, especially when children use it,” the President said on his official Twitter account, @PresRajapaksa.
President Rajapaksa said that as a Government that has always promoted Information Communication Technologies, it had no intention to ban Facebook in Sri Lanka.
He said the Government was actually working on promoting the safe use of social media, instead of bringing about a ban of the popular site.
Addressing a gathering at a temple in Keragala on Monday, President Rajapaksa expressed similar sentiments, saying simply banning the website would not put an end to cyber crime.
Speculation has mounted about a potential ban of social media websites after two suicides were triggered by content published on Facebook. (DB)

Commercial Bank beats tough 2013 with Rs. 10.445 b net profit

• Turnover up 15.4% to Rs. 73.16 b
• Assets cross Rs. 600 b
• Deposits up 15.5% to Rs. 451.153 b
• Loan book grows 12.30% to Rs. 419.505 b

A characteristically resilient operational performance that gained momentum as the year progressed has enabled the Commercial Bank of Ceylon PLC to end 2013 on a strong note, despite lower demand for credit and thinning margins.
Sri Lanka’s largest private bank has reported profit before tax of Rs. 14.51 billion for the year ended 31 December 2013, on gross income of Rs. 73.16 billion, which was up Rs. 9.764 billion or 15.4% over 2012.
Profit after tax at Rs. 10.445 billion for the full year reflected a noteworthy performance amidst tough market conditions.
Describing 2013 as a period in which a number of factors combined to make it a challenging year for the banking sector, Commercial Bank Chairman Dinesh Weerakkody said: “Against this backdrop, Commercial Bank turned in a healthy performance for 2013, posting strong results against many key indicators.”
“The success of the bank’s performance is also reflected in the Group which comprises of the Commercial Bank, its subsidiaries and associates. The Group post tax profit of Rs. 10.573 billion represents a growth of 4.88%,”he added.