Friday 16 May 2014

Sanasa Development Bank shows disappointing quarterly results

By J. Kurukulasuriya

Ceylon FT: Sanasa Development Bank PLC, which is 99.98% owned by the public, showed a disappointing result in the quarter ended 31 March 2014, with profits falling 51% over the corresponding previous year’s results, to Rs 57 million after VAT and income tax.

Sanasa is a relatively small bank with 842 employees in 82 branches.


Fee and commission income increased 31% to Rs 33 million, but fee and commission expenses rose by 141% to Rs 5.5 million. Other operating income (net) was up 232%.

Impairment for loans and other losses rose by 149% to Rs 106 million. Personnel expenses rose 46% to Rs 175 million.

The bank’s core capital adequacy ratio as a percentage of risk weighted assets – (minimum requirement for a bank being 5%), stood at 12.87, and the total capital adequacy ratio (as a percentage of risk weighted assets –minimum requirement for a bank being 10%) stood at 12.98.

The bank reported a return on equity of 7.8% after taxes, and statutory liquid asset ratio (minimum requirement, 20%) of 21.4%.

The bank has a stated capital of Rs 2,526 million in ordinary shares, (total No. of Shares 25, 175,322) and relatively low reserves of Rs 914 million.


Its main shareholder is People’s Leasing PLC with 3.9%, followed by CB NY S/A International Finance Corporation (3.57%), and Kegalle Sanasa Share Holders Trust Company Limited (2.65%). H.A. Van Starrex is the biggest individual shareholder with 1.59%.

Of the directors, M.S.Kiriwandeniya holds 1,712 shares and T. Karunasena holds 3,301 shares. The shares traded between Rs 82 and 73.50 in the quarter.
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