Xoom partners with Sampath Bank

Xoom Corporation (NASDAQ: XOOM), a digital money transfer provider, announced the launch of its money transfer service to Sri Lanka. Xoom has partnered with Sampath Bank, to offer instant deposits to Sampath Bank accounts in Sri Lanka.

Furthermore, Xoom will also provide bank deposits within 24 hours to other banks in Sri Lanka, including Hatton National Bank, Bank of Ceylon, Peoples Bank, Commercial Bank, and more. With the addition of Sri Lanka, Xoom's money transfer services now reach 33 countries.

"We are delighted to extend Xoom's services to the Sri Lankan market," said John Kunze, Xoom's President and CEO. "With our breakthrough technology, Sri Lankans in the U.S. can securely, conveniently, and cost-effectively send money to their friends and family back home."

"Sampath Bank is very proud to announce its partnership with Xoom," said Mr. Kusal De Silva, Senior Manager of Remittances at Sampath Bank. "This is yet another step by the bank to provide an even more convenient service for its customers.

Through our collaboration with Xoom, families in the U.S can send money to their loved ones in Sri Lanka instantly and safely." [0]Xoom makes it secure and convenient for Sri Lankan immigrants to send money from their computer, tablet, or mobile phone.

When paying with a bank account, customers can send up to $1,000 for just $4.99, and transfers are fee-free for transactions over $1,000.
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Virtusa posts healthy first quarter results

Virtusa Corporation, reported consolidated financial results for the fourth quarter and full fiscal year 2015, ended March 31, 2015.

Revenue for the fourth quarter of fiscal 2015 was $126 million, an increase of 2.5% sequentially and 13% year-over-year.

On a constant currency basis,one fourth quarter revenue increased 4% sequentially and 17% year-over-year.

Virtusa reported GAAP income from operations of $14.5 million for the fourth quarter of fiscal 2015, compared to $14.6 million for the third quarter of fiscal 2015, and an increase compared to $12.5 million for the fourth quarter of fiscal 2014.

On a GAAP basis, net income for the fourth quarter of fiscal 2015 was $11.6 million, or $0.39 per diluted share, compared to $11.8 million, or $0.40 per diluted share, for the third quarter of fiscal 2015, and an increase from $10.0 million, or $0.35 per diluted share, for the fourth quarter of fiscal 2014.

GAAP earnings per diluted share for the fourth quarter of 2015 included a ($0.01) cumulative impact from acquisition related transaction expenses and foreign currency transaction losses.
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AIA Sri Lanka revenue increases in Q1

AIA Sri Lanka has continued to benefit from a clear strategy of targeting sustainable growth. Consolidated revenue increased by 2 per cent to Rs 3,268 million, with solid growth of 14 per cent in Gross Written Premium (GWP) amounting to Rs 2,949 million offset by lower investment income.

GWP from conventional life business, which is a key strategic focus, grew by 14 per cent to Rs 1,528 million and contributed 84 per cent of the overall life GWP.

Overall life GWP was Rs 1,817 million, up 4 per cent.General insurance GWP increased by 35 per cent to Rs 1,132 million, driven by strong growth in agency.

AIA Sri Lanka reported a consolidated loss after tax of Rs 2 million for the three months ended 31 March 2015, compared with consolidated profit after tax of Rs 78 million in the corresponding period in 2014.

It was mainly attributable to lower investment income and increase in claims in the general insurance business during the reporting period. The surplus of the life insurance business is reported annually at the year end.

AIA Sri Lanka CEO Shah Rouf said they are well positioned to capture the growth opportunities that exist as the economic development in Sri Lanka continues. “This quarter also saw us entering into a historic partnership with Sri Lanka Cricket as the official insurance partner for Sri Lanka Cricket which reiterates our commitment to connecting with and protecting what truly matters to Sri Lankans.”
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Nestlé Lanka net profits top Rs 1.2 b in Q1

Nestlé Lanka delivered a revenue of Rs 9.2 billion with a YoY growth of 7.3% for the first quarter ending March 31, 2015.

The company posted a profit after tax of Rs 1.2 billion.

"The first quarter of the year was eventful both in terms of product innovations and in driving our Nutrition, Health and Wellness (NHW) commitments across Sri Lanka," Nestlé Lanka Managing Director Shivani Hegde said.

"We remain focused on innovating and renovating our portfolio to meet the changing lifestyles of our local consumers, and will continue to drive the growth momentum by investing in our brands and in our people," she added.

The first quarter of 2015 witnessed two new product launches, reflecting the company's commitment to leverage global R&D capabilities to address local taste preferences. Maggi Devilled X-Tra Green Chilli Noodles, containing real green chilli, is the first of its kind to enter the local market.

Nestlé Professional continued to provide solutions to the out-of-home sector, with the introduction of Nestlé Docello, an exciting range of dessert solutions that offer great taste and convenience.

Following an understanding of the lack of sufficient physical activity amongst school children, Nestlé Lanka entered into a partnership with the Education Ministry and the Athletic Association of Sri Lanka to launch the global 'IAAF Kids' Athletics' programme, to promote a physical activity module amongst primary school children across the country.
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Nations Trust posts Rs. 493m PTP

The Bank closed the first quarter ending March 31 2015 with a post-tax profit of Rs. 493 Mn underpinned by a moderate growth of 9% in operating income and a commendable containment of operating expenses growth to 5% over the corresponding quarter.

These levels of growth in income and expenses resulted in the Bank improving core operating margins considerably but was somewhat hindered by higher impairment charges which impacted bottom line growth.

Net interest income recorded a growth of 8% over the previous period as the low interest rate operating environment brought about many challenges on asset re-pricing which was partly off-set by reducing cost of liabilities with the re-pricing of shorter tenor deposits.

The resultant drop in interest income of 8% over previous period was offset by the drop in interest expenses of 22%.

Overall, Banks NIMs did not record any significant movement as continuous efforts to grow low cost deposits improved the deposit mix which also assisted in reducing the cost of liabilities.

Net fees and commission income recorded a growth of 20% for the period under review driven by credit card fee based income.

Net trading income recorded a loss for the period owing to marked to market losses on the FIS portfolio as a result of unfavorable movements in the underlying Government Securities yields.

Bottom line growth for the current period slowed due to higher impairment charges amounting to Rs.530 Mn. The impairment charge for the period increased by 73% as compared to the corresponding period of 2014. This is primarily due to a one off charge where specific facilities have been fully provided. The drop in collective impairment for the current quarter is mainly attributable to charges made on account of pawning portfolio in the corresponding period.

Commenting on the results and achievements, Renuka Fernando, Director/CEO stated “We are pleased with the performance of the Bank in the quarter, which has withstood multiple challenges of narrowing NIMs, slow demand for credit, higher impairment charges and talent retention. We will remain undeterred and focused as we relentlessly pursue our goal to become ‘The Primary Bank’ for our target customer segments”.
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Seylan Bank records 27% growth in Q1

Seylan Bank, recorded a strong quarterly performance with Profits before Income Tax reaching Rs. 968 Million, a 21% increase for the 3 months ended 31st March 2015. Profits after tax recorded a growth of 27% to reach Rs. 651 Million compared to the Rs. 514 Million reported in the corresponding period in 2014.

Despite industry wide pressure on interest margins and growth, Net Interest income increased by 20% to Rs. 2.80 Billion for the 3 months ended 31st March 2015. Net fee and commission income increased by 9% from Rs. 515 Million to Rs. 562 Million during Q-1 2015, showing a consolidation of the solid growth in core banking activities achieved by Seylan Bank over the past few years. The Bank, based on its 4 year Strategic Plan (2012 – 2016), has focused significantly on areas which include Advance/Deposit growth, Branch Expansion, Customer Service improvement, Staff Development, NPA reduction, Cost Control, New Product Development, IT Infrastructure, Shareholder value, etc. The Strategic Plan also earmarks the opening of 100 libraries in under-privileged schools. 57 such school libraries have been opened by the Bank, since 2013.

The Net Advance portfolio of the Bank grew from Rs. 154.9 Billion to Rs. 155.2 Billion during Q-1, while its Deposit Base marginally reduced from Rs. 185.9 Billion to Rs. 185.0 Billion during the 3 months under review.
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COMBank ups profit by 10% to Rs. 2.5 b in 1Q

Assets cross Rs. 800 billion; Deposits reach Rs. 549.1 billion; loans and receivables grow to Rs. 498.5 billion

The Commercial Bank of Ceylon Plc has made a steady start to 2015, with profit after tax of Rs. 2.509 billion for the three months ended 31 March, an improvement of 10.1% YoY.

A robust YoY growth in loans and receivables coupled with customary strong deposit growth and lower cost of funds contributed to this growth by generating net interest income of Rs. 7.233 billion, an increase of 10.06%, Sri Lanka’s largest private bank said in a filing with the Colombo Stock Exchange.

Profit before VAT and NBT for the three months reviewed was up 7.88% to Rs. 4.204 billion, while profit before tax at Rs. 3.579 billion reflected an improvement of 8.77%, the bank reported.

Total operating income, which comprises net interest income, commissions, foreign exchange income, recoveries and other income, increased by 8.84% to Rs. 9.682 billion.

Total loans and receivables amounted to Rs. 498.552 billion as at 31 March 2015, a growth of 19.13% over 12 months. Total deposits grew by an average of more than Rs. 6 billion a month since 31 December 2014 to reach Rs. 549.111 billion at the end of the quarter reviewed. Deposit growth over the preceding 12 months was 16.28%.

Commenting on these results, Commercial Bank Chairman Dharma Dheerasinghe said: 
“Commercial Bank’s performance in the first quarter is consistent with projections and reflects the inherent strengths of the bank. There are several challenges that are common to most players in the banking sector, and in that context, the bank’s figures are impressive.”

Commercial Bank Managing Director Jegan Durairatnam said that the bank was able to report a commendable growth in profits despite shrinking interest margins witnessed during the period under review.

The total assets of the bank crossed the Rs. 800 billion mark during the review period and stood at Rs. 807.852 billion at the end of Q1.

Total expenses, including personnel costs, depreciation and amortisation and other expenses increased by 7.82% to Rs. 4.148 billion.

In other key performance indicators, Commercial Bank improved its gross and net non-performing loans (NPL) ratios to 3.40% and 1.88% respectively from 4.40% and 2.54% a year previously. Interest margins continued to drop and stood at 3.66% as at 31 March 2015. The bank’s Tier I capital adequacy ratio reduced from 12.93% to 12.14%, while total capital adequacy for the reviewed quarter reduced to 15.03% from 15.97%. These ratios however remain well above statutory requirements.

The bank retained its position as the bank with the highest market capitalisation in Sri Lanka and the third-largest listed entity overall in the period reviewed.

The only Sri Lankan bank to be ranked among the Top 1000 banks of the world for four consecutive years (2011-2014), Commercial Bank operates a network of 242 branches and 610 ATMs in Sri Lanka. The bank has won multiple awards as Sri Lanka’s best bank over several years and was adjudged one of the country’s 10 best corporate citizens by the Ceylon Chamber of Commerce in 2013 and 2014. The bank has been rated the Most Respected Bank in Sri Lanka by LMD for the past 10 years, has been the second Most Respected Corporate entity in the country overall for the past four years and has been rated No.1 in Sri Lanka for Honesty in 2013 and 2014 by the magazine. 
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