RIL Property to develop United Motors land in Colombo 2

By Duruthu Edirimuni Chandrasekera

Commercial space owners, RIL Property PLC which bought 30 per cent in United Motors PLC on Wednesday morning, with officials saying that the latter’s potential for property development is large, will be developing the 280 perch block adjacent to their Parkland building in the long term.

“We will definitely capitalise on the land bank. We now own an ‘island’ really because there’re roads all around us. It makes perfect sense (this transaction) as we are also consolidating our land,” Hiroshini Fernando, CEO RIL Property told the Business Times. She added that it’s a good fit as all major developments were happening in Colombo 2.

United Motors PLC’s largest shareholder M.A. Yaseen sold some 30.27 million shares in United Motors PLC which traded in two large parcels on the Colombo Stock Exchange (CSE) at Rs. 78. The first parcel was 20,271,000 shares and the second was 10 million shares. Mr. Yaseen had 61.20 per cent in United Motors PLC, and is the largest shareholder. Mr. Yaseen continues to hold a 31.2 per cent stake in UML. He also owns 16 per cent stake directly in RIL. The Yaseen family owns 74 per cent in RIL Property.

Ms. Fernando added that the stake represents 30 per cent of the 61.2 per cent voting rights held by Mr. Yaseen in UML which has agencies for Mitsubishi and Perodua.

While the property in Colombo 2 is lucrative, the total land base that UML has is 17 acres.

www.sundaytimes.lk

Amana Bank’s Q3 2017 pre-tax profit triples

After recently doubling its capital to over Rs 10 billion, Amãna Bank reinforced the confidence of its shareholders by tripling its Q3 2017 pre-tax profit to reach Rs. 186.1 million as against Rs. 62.9 million in Q3 2016.

For the nine months ending 30 September 2017, the bank recorded pre-tax profit of Rs. 397 million showcasing a significant YoY growth of 181 per cent from Rs. 140.9 million achieved in the corresponding period of 2016, the bank said in a media release.

Post tax profit for the same period grew by 163 per cent YoY to Rs. 266.8 million from Rs 101.4 million achieved a year ago. Despite doubling the bank’s number of shares as a result of the rights issue in July, the bank was successful in recording a 119 per cent YoY growth in its EPS whilst Net Assets Per Share stood at Rs 4.56 against the market price of Rs. 3.80 as at 30 September 2017.

Commenting on the performance to date, bank CEO Mohamed Azmeer, stated; “I am pleased to witness the bank’s successful performance during the first three quarters of 2017. This promising upward trend is owing to the revenue growth achieved by the bank demonstrating the unique value proposition of its model whilst gaining widespread acceptance. The avenues of growth, reflects our focus of being a retail and SME bank as well as adapting to new technological innovations in line with the bank’s 5 year strategic plan”.
www.sundaytimes.lk

HNBA Group delivers a solid performance during Q3

HNB Assurance PLC (HNBA) and its fully owned subsidiary HNB General Insurance Limited (HNBGI) posted a Profit After Tax (PAT) of LKR 282 MN for the nine months ended, 30th September 2017, depicting a growth of 166% compared to the PAT of LKR 106 MN recorded during the corresponding period last year.

The Group posted a Gross Written Premium (GWP) of LKR5.8 BN, signifying a growth of 20% as opposed to the GWP of LKR 4.9 BN recorded during the same period in 2016. In reviewing the performance of each individual company, the Life Insurance Company recorded a GWP of LKR 2.9 BN as opposed to the GWP of LKR 2.6 BNachieved during the first nine months of 2016. The General Insurance Company registered a GWP of LKR 2.9 BN against the GWP of LKR 2.3 BN recorded during the corresponding period of 2016.

For the nine months ended 30th September, 2017 the group earned an Investment Income of LKR 1,197 MN with a growth of 45% against LKR 825 MN achieved during the same period of 2016. The Total Assets of the Group reached a value of LKR17.6 BN and Investments in Financial Instruments reached a value of LKR14.4 BN. During the same period the Life Insurance Fund and General Insurance Fund grew by 22% and 30% reaching values of Rs. 10.6 BN and 2.5 BN respectively.

Speaking on the financial performance of the Group, Chairperson of HNBA and HNBGI Mrs. Rose Cooray stated that "the Board of Directors is extremely pleased on the Group’s financial performance showcased during the first nine months of 2017. The profits of the Group were triggered by several key contributors in both businesses. The growth of individual policies of the Life business and the growth of several categories such as Fire, Motor and Marine of the General business led the Group to yield these significant financial results.These financial results augur well for the sound business strategies deployed by the HNBA Group despite the stressful market conditions in this economic backdrop. TheQ3 results of the Group demonstrate its stability wherethe key focus has always been on maximizing the returns to each stakeholder and delivering sustainable long-term returns and these robust financial results alongside the growth of both HNBA and HNBGI are testaments of the Group’s solid performance".

Sharing his thoughts on the Q3 financial performance, Managing Director/CEO of HNBA and HNBGI Mr. Deepthi Lokuarachchi stated "coming off a strong first half, both HNBA and HNBGI teams have delivered steadfast results over Q3 as well, which marks a significant growth driven in particular byseizing new markets and deploying effective business strategies. The Group’s consolidated figures showcase the growth of several General Insurancesegments, which have ledthe Group to yield these thriving results. I’m sure that these results will continue its growth in the final quarter of 2017, despite the on-going challenges. The Group continued to enhance and recalibrateits risk profile despite the volatilemacroeconomic conditions within the regions and as a result the Group’s footprint in the countryhas been able to seize emerginggrowth opportunities by constantly maintaining its position in the industry. The HNBA Group remains confident of its competitive advantage, solidarity of its financial backing and the dynamic business strategies in acquiring new market segments and growing both Life and General businesses".

HNB Assurance PLC (HNBA) is one of the fastest growing Insurance Companies in Sri Lanka with a network of 56 branches. HNBA is a Life Insurance company with a rating of A (lka) by Fitch Ratings Lanka for "National Insurer Financial Strength Rating" and "National Long- term Rating". Following the introduction of the segregation rules by the Insurance Regulator, HNB General Insurance Limited (HNBGI) was created and commenced its operations in January 2015; HNBGI continues to specialize in motor, non-motor and Takaful insurance solutions and is a fully owned subsidiary of HNB Assurance PLC. HNBA is rated within the Top 100 Brands and Top 100 companies in Sri Lanka by LMD and HNB Assurance has won International awards for Brand Excellence, Digital Marketing and HR Excellence and also won many awards for its Annual Reports at the Award ceremonies organized by the Institute of Chartered Accountants of Sri Lanka and SAFA (South Asian Federation of Accountants).
www.island.lk

Sri Lankan stocks drop; telcos, banks drag after budget measures

Reuters: Sri Lankan shares fell on Friday, weighed down by declines in telecom and banking stocks after the island nation targeted both cash-rich sectors in its 2018 budget to boost revenue.

Sri Lanka imposed new taxes on motor vehicles, telecoms, banks and liquor in a bid to boost revenues in its 2018 budget outlined on Thursday, as the budget deficit for the current year slipped to 5.2 percent of the gross domestic product.

Finance Minister Mangala Samaraweera imposed taxes on telecom towers and text messages, and introduced a debt repayment levy of 20 cents per 1,000 rupee bank transaction with effect from April 1 next year.

“It is a progressive budget. We see a lot of positive measures. The finance minister’s clarity on listing state banks will be a huge boost to the market liquidity,” said Prashan Fernando, CEO at Acuity Stockbrokers.

The Colombo stock index ended 0.22 percent weaker at 6,552.59, its lowest close in one month. For the week, it dropped 1 percent.

Turnover was 1.35 billion rupees ($8.79 million) on Friday, more than this year’s average of around 954.3 million rupees.

The finance minister announced tax concessions worth a monthly 1.5 billion rupees ($9.8 million) on Wednesday to reduce the cost of living and boost consumption.

Top mobile services provider Dialog Axiata dropped 3 percent, while No.1 listed private lender Commercial Bank of Ceylon fell 1.3 percent.

Diversified conglomerate Hayleys Plc accounted for more than 50 percent of the day’s turnover and closed up 2.6 percent.

Foreign investors bought shares worth net 61.8 million rupees, extending the net foreign inflow in equities to 18.2 billion rupees so far this year.

($1 = 153.5500 Sri Lankan rupees) 

(Reporting by Shihar Aneez; Editing by Subhranshu Sahu)

Sri Lanka to sell stock in Bank of Ceylon, People's Bank

ECONOMYEXT - Sri Lanka's state-run Bank of Ceylon and People's Bank will be allowed sell shares to the public to raise equity and boost capital, Finance Minister Mangala Samaraweera said.

Bank of Ceylon and People's Bank, will be sell shares, provided customers and employees are also allowed to buy stock, Samaraweera said presenting a budget for 2018.

State banks such as National Savings Bank and Bank of Ceylon had already tapped international capital markets, he said.

He said the banks needed boost capital to meet Basle III standard.

Deputy Policy Minister Harsha de Silva said last week that up to 10 percent of stock in state banks could be sold down.

Sri Lanka’s Royal Ceramics Sept net down 7.3-pct

ECONOMYNEXT – Sri Lanka’s Royal Ceramics said September 2017 quarter group net profit fell 7.3% to Rs682 million from a year ago.

Total group sales rose 12% to Rs7.5 billion, according to interim accounts filed with the stock exchange.

Quarterly earnings per share were Rs6.16. the stock last traded at Rs120.

EPS for the six months to September 2017 were Rs10.84 with net profit down 12% to Rs1.2 billion although sales rose 10% to Rs13.9 billion.

The accounts showed lower profits in the tiles, sanitaryware and aluminium businesses although plantations returned to profit from a loss the year before while tax costs were up 23% during the period.

During the quarter Lanka Tiles, a subsidiary of Royal Ceramics, invested in 51% shareholding in the subsidiary, Lankatiles Private Limited, incorporated in Bengaluru, India.
Lanka Tiles intends to distribute locally manufactured tiles in the Indian market through this subsidiary.

Sri Lankan stocks slip ahead of tax raising budget

Reuters: Sri Lankan shares closed lower on Thursday before the presentation of the national budget, where the South Asian island nation imposed new taxes on motor vehicles, telecoms, banks and liquor in a bid to boost revenues.

The budget deficit for the current year slipped to 5.2 percent of gross domestic product.

The Colombo stock index closed 0.47 percent weaker at 6,567.07, its lowest close since Sept. 15.

Turnover was 1.56 billion rupees ($10.16 million), more than this year’s average of around 952.4 million rupees.

“Investors waited for the budget. Some expected measures negative to stocks. But we have not seen any such measures,” said Prashan Fernando, CEO at Acuity Stockbrokers.

Finance Minister Mangala Samaraweera on Wednesday announced tax concessions worth a monthly 1.5 billion rupees ($9.8 million) to reduce the cost of living and boost consumption.

Shares in Hatton National Bank lost 1.9 percent, while large cap Nestle Lanka Plc closed 1.2 percent weaker.

Foreign investors sold shares worth net 32.8 billion rupees in the session, but they have been net buyers of shares worth 18.1 billion rupees so far this year.

($1 = 153.5000 Sri Lankan rupees)

(Reporting by Shihar Aneez; Editing by Toby Chopra)