Touchwood depositors get tough with Maloneys

By Sunimalee Dias

A group of Touchwood investors filed complaints with the Criminal Investigation Department (CID) on Friday, also aimed at obtaining an international warrant against the company former owners, the Maloneys.

The Touchwood Stakeholders Association (TSA) Co-ordinator lawyer Lakshan Dias told the Business Times that they had filed 12 complaints with the CID against Roscoe and Swarna Maloney, who are both abroad.

The complaint made against them was for fraud and cheating depositors of their monies invested in Touchwood. The complaint would be made highlighting that the Touchwood organisation had accepted money from various people and now that the company is closed and the management in hiding they expect justice to be meted out for fraud and cheating.

Meanwhile, the Touchwood Investments PLC winding up case scheduled to deliver verdict relating to the default in payments to the petitioner was postponed for June 5. The case which was taken up at the Commercial High Court No. 3 in Colombo was scheduled to deliver a verdict on the winding up of the company but was postponed. The company’s CEO Lanka Kiwlegedara was also present in court on the said date.
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Commercial Bank posts Q1 pre-tax profit of Rs. 3.3 bln

The Commercial Bank of Ceylon PLC said last week that it has “made a measured start to 2014 despite excess liquidity, lower demand for credit and thinning margins”.

In a media statement, the bank reported operating profit before VAT and NBT of Rs 3.897 billion for the three months ended 31st March 2014, reflecting growth of 4.73 per cent over the first quarter of 2013. Operating profit after VAT and NBT (PBT) grew by a

modest 1.88 per cent to Rs. 3.291 billion, with VAT and NBT for the three months totalling Rs. 606.3 million, an increase of 23.53 per cent.

The bank’s profit after tax for the quarter reviewed was up 1.68 per cent to Rs. 2.279 billion on gross income of Rs. 17.760 billion.

Commenting on these results, Commercial Bank Chairman Dinesh Weerakkody said: “The bank performed well this quarter, despite a very challenging environment. We continued to grow our business volumes as well as strengthen our key performance indicators. As we move into the second quarter, we expect to grow in the areas where we have a long track record of strong earnings, and will continue to execute on our strategic priorities.”

Commercial Bank Managing Director Ravi Dias added: “The bank recorded healthy growth in net interest income despite narrowing margins through an increase in interest-earning assets and timely re-pricing of assets and liabilities.” The bank had also achieved gains from trading and financial investments and contained the growth in expenses to under 10 per cent in the period reviewed, he said, adding that the bank had also maintained the momentum of deposit growth, averaging more than Rs. 5 billion a month.

Impairment charges on loans and losses increased from Rs. 517 million in the first quarter of last year to Rs. 1.151 billion in the quarter reviewed, due to higher non-performing loans (NPLs), a common challenge faced by the banking industry. Total expenses for the period amounted to Rs. 3.847 billion, an increase of 9.68 per cent. The bank said it expects a similar trend in expenses, as it plans moderate expansion of the branch network in 2014, given the fact it is now present in key towns in all districts of Sri Lanka.

The bank’s total assets reached Rs. 648 billion at the end of first quarter 2014, recording a growth of Rs. 41 billion or 6.83 per cent. Loans and receivables totalled Rs. 418 billion at the end of the period reviewed, while total deposits reached Rs. 481 billion.
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