Commercial Bank is Euromoney’s Best Bank in Sri Lanka in 2015

Euromoney, widely considered one of the world’s leading financial magazines, has adjudged Commercial Bank of Ceylon PLC the Best Bank in Sri Lanka in 2015 at the magazine’s Asia Awards for Excellence presented recently in Hong Kong.

This is the second major international award presented to Commercial Bank in the past two months, during which the Bank also had the distinction of becoming the only Sri Lankan bank to be ranked among the Top 1000 banks of the world for five consecutive years.

The prestigious Euromoney accolade is based on detailed submissions from market participants and extensive year-round research into the banking and capital markets in the region by the magazine’s editors, journalists and research team.

According to Euromoney, the Asia Awards are seen as the benchmark for the leading firms in financial services in the region, and are fiercely contested across numerous markets and categories.

Country awards in the larger markets in Asia-Pacific included the award for Best Bank in Australia which went to Suncorp; Best Bank in China to ICBC; Best Bank in India to Kotak Mahindra Bank and Best Bank in Singapore to OCBC. Elsewhere, the Best Bank in Hong Kong went to HSBC, Best Bank in Indonesia to Bank Central Asia, Best Bank in Malaysia to Public Bank and Best Bank in New Zealand to ANZ.

"We are further strengthened with this very credible award, which is based on evaluation criteria applied to banks across global markets and regions," Commercial Bank’s Managing Director and CEO Mr Jegan Durairatnam said. "We are grateful to the millions of Commercial Bank customers whose patronage has made this award possible, and to the entire team whose passion and commitment keep the Bank in the vanguard of the industry."

The evaluation by Euromoney covers banks in all major countries in Asia, Middle East, Europe, Africa, North and Latin America, the Caribbean as well as the Nordic and Baltic regions. Euromoney honours institutions that demonstrate leadership, innovation and momentum in the markets in which they excel and presents a number of awards to the Asian region’s banks and securities houses.

Among the aspects examined for the awards are qualitative and quantitative criteria such as market position, volume of business transacted, new product development, management system, credit ratings, efficiency ratios and annual key performance indicators.

In the year reviewed for the award, Commercial Bank reported profit before tax of Rs 15.7 billion, a loan book of Rs 463.6 billion, deposits of Rs 529.4 billion, gross income of Rs 74.4 billion, assets of Rs 795.6 billion and Tier I Capital Adequacy Ratio of 12.93%.

The award for the Best Bank in Sri Lanka in 2015 was accepted by Commercial Bank’s Chief Operating Officer/ Executive Director Mr S Renganathan at the presentation ceremony at Island Shangri La, Hotel Hong Kong. Leading figures from banking and capital markets across Asia were present to hear the announcement of Euromoney’s Asia Awards for Excellence 2015.

Founded by Sir Patrick Sergeant in 1969, Euromoney is read by 140,000 of the world’s top financial decision makers in more than 100 countries, making it the prime magazine of the wholesale financial world, its institutions and its users.

Commercial Bank operates a network of 243 branches and 613 ATMs in Sri Lanka. Ranked the most valuable private sector brand in the country in 2014, the Bank was adjudged the Best Bank in Sri Lanka by FinanceAsia in 2015. Commercial Bank has also won multiple awards as Sri Lanka’s best bank from other international publications over several years. The Bank was adjudged one of Sri Lanka’s 10 best corporate citizens by the Ceylon Chamber of Commerce in 2013 and 2014, and has been rated the Most Respected Bank in Sri Lanka by LMD for the past 10 years. The Bank has also been the second Most Respected Corporate entity in the country overall for the past four years in the LMD rankings, and has been rated No. 1 in Sri Lanka for Honesty in 2013 and 2014 by the magazine.

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Carson’s to de-list four Malaysian Plantation Companies

Carson Cumberbatch PLC. will initiate procedures to de-list their Malaysian Plantation Companies (MPCs) due to the minimum public holding rule of the Colombo Stock Exchange (CSE), Carsons have announced in their latest annual report.

These rules require a minimum public float which is not available in the four companies - Selinsing, Shalimar, Indo-Malay and Good Hope in each of which Carson’s own over 90% of the shares.

These old-established Colombo incorporated companies hold oil palm plantations in Malaysia.

Neither do Carson’s intend diluting their holdings nor issuing new shares to ensure the minimum flat. There would therefore be no option to de-listing, the report said.

The report said that under the "Rules on Minimum Public Float, as a Continuous Listing Requirement" issued by the CSE mandates all listed companies to ensure a minimum threshold of 20% to be held by ‘public shareholders’ effective from January 1, 2014.

However, "on this date if a company does not fulfill this requirement such company is expected to be fully compliant by Dec 31, 2016, the Rules stipulate," CSE has said.

Carson’s said that they made a voluntary offer to all shareholders of the four Malaysian plantation companies they control in March 2011 with the objective of consolidating the ownership of these companies under the plantation sector holding company – Goodhope Asia Holdings Ltd., operating from Singapore.

"However, since the voluntary offer did not result in the acquisition of the entirety of the balance minority shareholding, the four MPCs continue to remain as listed entities with a ‘public float’ of less than what is now required by the above rule," Carson’s said.

Saying that compliance with the rule would conflict with the objective of the voluntary offer, and that the majority shareholder (that is Carson’s) does not have any intention of diluting its holding, nor did the four MPCs intend to issue further shares in order to conform to this rule, this would therefore entail the initiation of a de-listing process for the four MPCs.

"When so decided, this would be done in consultation with the regulator and the required shareholder approval from the MPCs," Carsons said.

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Some 25% in Lanka Walltiles capacity to be converted to floor tiles

Lack of demand for wall tiles has led Lanka Walltiles (LWL) to convert 25 per cent of its plant capacity to manufacture floor tiles, officials said. ”There’s a gradual accumulation of LWL stock which is about 10,000 square metres (sqm) a month, which is mainly due to diminishing demand. We want to convert 25 per cent of LWL’s production capacity to make floor tiles, as demand for floor tiles is more, an official told the Business Times. LWL has 7500 sqm manufacturing capacity a day. The official added that they plan to do this by October.

Royal Ceramics bought 82 per cent in Lanka Ceramics Ltd (LCL) which owns Lanka Walltiles Ltd some years ago. Royal Ceramics armed with a new strategy for the company had wanted to spruce up the LWL brand which was phased out by its former owners. “This was because the former owners wanted to concentrate on manufacturing floor tiles, but Royal Ceramics, which has Rocel and Lanka Tiles brands, had wanted to bring out the LWL brand, but that didn’t take off as expected,” the official added. 

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