Colombo Dockyard, Sri Lanka see profits slump 61-pct in March quarter

May 15, 2014 (LBO) - Profits at Colombo Dockyard Plc, a unit of Onominchi Japan's Onomichi Dockyard said profits fell 61 percent in from a year earlier to 130 million rupees in the March 2014 quarter amid rising expenses, interim account showed.

The firm reported earnings of 1.82 rupees for the quarter. The stock closed at 192.50 rupees down 30 cents Tuesday.

Revenues in the quarter fell 4.7 percent to 4.22 billion rupees, expenses rose at a faster 13.7 percent to 3.7 billion rupees, narrowing gross profit 34 percent to 485 million rupees.

Other income fell 15 percent to 73.7 million rupees and net finance income fell 44 percent to 27.2 million rupees.

Sri Lanka's Bank of Ceylon profits down 1.9-pct, cushioned by loss reversals

May 15, 2014 (LBO) - Profits at Sri Lanka's state-run Bank of Ceylon group fell 1.9 percent from a year earlier to 2.64 billion rupees in the March 2014 quarter with loan loss reversals and trading gains, offsetting flat net interest income.

Group interest income rose 2.0 percent to 27.9 billion rupees and interest expenses rose at a slower 1.8 percent to 19.0 billion rupees helping net interest income grow 2.6 percent to 8.9 billion rupees.

Sri Lanka's is recovering from a balance of payments crisis and interest rates are falling. Though most segments of loans grew, the bank cut back is gold backed loans or pawning advances after gold prices fell.

Loans and advances to customers rose to 755 billion rupees by end March from 746 billion rupees in December with financial investments - loans and receivables falling to 125 billion rupees from 130 billion rupees.

The bank reduced gold backed loans or pawning advances to 121 billion rupees from 131 billion rupees.

Overdrafts rose to 146 billion rupees from 117 billion rupees and term loans rose to 114 billion rupees from 107 billion rupees.

The group reversed 3.5 billion rupees in loss provisions. At standalone bank level, gross non performing loans rose to 5.42 percent of risk weighted assets from 4.32 percent in December.

Financial investments held-to-maturity rose to 206 billion rupees from 157 billion rupees.

Fees and commission income rose 26 percent to 1.7 billion rupees.

Gains from trading rose 78 percent to 1.0 billion rupees and gains from financial investments surged to 1.89 billion rupees from 108 million rupees a year earlier.

Group gross assets rose to 1.267 billion rupees in March from 1,225 billion in December. At standalone bank level, gross assets rose to 1,228 billion rupees from 1,193 billion rupees.

Capital adequacy increased to 12.25 percent from 12.10 percent.

Ceylinco Insurance, Sri Lanka profits down 13-pct

May 15, 2014 (LBO) - Profits at Sri Lanka's Ceylinco Insurance Plc, the largest insurer by revenue fell 13 percent to from a year earlier to 285 million rupees in the March 2014 quarter, interim accounts showed.

The group reported earnings of 10.82 rupees per share for the quarter.

Gross written premium rose 5 percent t 6.4 billion rupees with premiums after re-insurance also rising 5 percent to 5.5 billion rupees. General insurance grew 5.5 percent to 3.5 billion rupees and life grew 4.7 percent to 2.8 billion rupees.

Insurance claim and benefits rose 1 percent 2.3 billion rupees.

Investment income rose 14 percent to 1.97 billion rupees. An increase of 2.1 billion rupees in the life insurance fund was charged to the profit and loss account.

Gross assets rose to 90.9 billion rupees by end March 2014 from 87.4 billion rupees in December. Net assets rose to 18.7 billion rupees from 18.3 billion rupees.

Union Assurance overcomes cost increases

By J. Kurukulasuriya

Ceylon FT: Union Assurance PLC., a part of the John Keellls Group, released its quarterly unaudited accounts to 31 March 2014, showing a 3% increase in "total gross written premiums" to Rs 2,742 million over the previous year's corresponding figures.

Total net revenue was Rs 3,157 million, segment wise being 37% Non Life and 63% Life insurance.

Of the "total gross written premiums" of 2,742 million, Sector wise, the Life insurance premia were 50.4 % and Non Life premia were 49 %. In the Non Life insurance sector, the main component was motor insurance-which consisted 51%, followed by fire-14%, accident and liability - 27 % and marine insurance -7.6%.

Profit for the period Rs 123 million was up 11 % as compared to the previous year's same quarter. An increase in "Underwriting and net acquisition cost-including re-insurance"-up 13% and an increase in admin expenses of 17%, was reported.

The stated capital of the company is Rs 1,138 million, consisting of 85 million ordinary shares. The "public shareholding" as defined by the CSE was 4.34%.

The shares traded between a high of Rs 103 and a low of Rs 100 within the quarter.

The major shareholders of the company are John Keels Holdings PLC with 88% of the shares, and Whittall Boustead Ltd., with 7%. Dr. V. Bandaranayake was the biggest individual holder with 0.14%. Of the directors, A. D. Gunewardene - Chairman, held 8,562 shares.
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HDFC bank net up 166%

By J. Kurukulasuriya

Ceylon FT: HDFC Bank of Sri Lanka, (Housing Development Finance Corporation Bank), which is a relatively "small" bank with 33 branches and 534 employees, has completed a successful quarter with a 166% increase in net profits over the previous period ending 31 March 2013. Profit after tax was Rs 102 million for the quarter.

Personnel expenses increased by 24% to Rs 156 million, while Admin and "other operating expenses" showed small increases, but the bank's "fee and commission income" increased markedly 352 %, to Rs 94 million for the quarter.

The bank reported a "core capital adequacy ratio as a percentage of risk weighted assets" (minimum requirement is 5%), of 16%. It also reported a return on equity of 15.31%. The statutory liquid assets ratio percentage (minimum requirement for a bank is 20%), stood at 31%.

The bank has a stated capital of Rs 962,093,000, the public shareholding percentage being 30.72%.

The bank's shares traded at a price of between Rs 29.90 and 39-80 in the quarter, while its four year debentures traded at Rs 111.06.

The National Housing Development Authority is the main shareholder with 49.73%. Lanka Orix Leasing Company holds 15%, and Thurston Investments Ltd holds 14%. The UDA holds 0.46%, and State Engineering Corporation, 0.19%. Dr. Senthilverl Thirugnanasambandar is the top individual shareholder with 2.53%.
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