Sri Lanka Telecom March quarter net Rs1.6bn

COLOMBO (EconomyNext) – Sri Lanka Telecom said group net profit for the March 2015 quarter rose 201 percent to 1.6 billion rupees from the previous year with sales growth boosted by revenue streams like data and broadband.

Basic earnings per share for the quarter were 93 cents, a stock exchange filing said.

SLT group sales rose nine percent to 16.7 billion rupees during the first quarter of 2015 from the year before while operating costs remained at around 11 billion rupees.

The group EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) rose 34 percent to 5.6 billion rupees while EBITDA margin improved to 33.3 percent from 27.2 percent in the same quarter of the year before.

SLT said it had not provided for several new taxes including a ‘super gain’ tax imposed in the government budget of January 2015 as laws making them effective had not yet been passed.

SLT said revenue growth was driven by local non-voice revenue streams such as data and broadband, enterprise, small business and IPTV.

“Introduction of a high capacity IPTV system, expansions in broadband and data services and investments in infrastructure developments have largely contributed to the revenue growth,” SLT said.

The operating cost of the company was six percent below the same quarter of the previous year resulting from “effective cost controls apart from the impact to the operating cost of the previous year by one time charge resulting from an out of court settlement of a civil litigation.”

Net profits of SLT’s mobile arm, Mobitel, rose 67 percent to a billion rupees in the first quarter of 2015 form the year before which the firm attributed to growth in earnings before interest and tax as well as “favourable macro conditions.”

Mobitel “continued to grow its revenue despite industry challenges,” the statement said.

Mobitel’s sales for the first quarter of 2014 grew 12 percent to 8.1 billion rupees from the year before mainly due to continued growth in voice services not withstanding an industry slowdown.

“Also it was supported by the continuous growth in data services which is the future of the mobile industry,” the statement said.

“This encouraging growth is a result of the continuous investments made in the latest technology, capacity enhancements and coverage expansion.”

Sri Lanka index edges down for second day, but inflows at one-year high

May 14 Sri Lankan shares fell on Thursday, led by Distilleries Company of Sri Lanka Plc , though foreign buying in Ceylinco Insurance Plc boosted the day's turnover to an eight-month high.

The main stock index ended 0.11 percent weaker at 7,236.87, slipping for a second session after hitting its highest close since Feb. 27 on Tuesday.

Turnover was 5.29 billion rupees ($39.7 million), the highest since Sept. 11 and nearly five-times more than this year's daily average of around 1.11 billion rupees.

Foreign inflows at 2.73 billion rupees also touched their highest since May 9 last year, extending net inflows so far this year to 5.65 billion rupees worth of shares.

Ceylinco Insurance, which accounted for 66.6 percent of the day's turnover, ended 3.37 percent firmer. But the gains were erased by selling in large-caps, with Distilleries Company leading the fall with a 2.28 percent drop.

Investors have been optimistic about earnings in a lower interest-rate regime, but political uncertainty ahead of a parliament election has weighed on sentiment.

The bourse has gained about 4.9 percent since the central bank cut key rates on April 15, while yields on t-bills have fallen 46-61 basis points since then.

As of Wednesday, earnings of 37 listed companies have on average showed a rise of 19.5 percent year-on-year in the first quarter, said a stockbroker.

Investors are waiting for direction on the political front, analysts said, adding the market could be dull in the medium term until the perception of political uncertainty is addressed.

Sri Lanka's parliament is expected to debate and pass some key reforms next week and President Maithripala Sirisena has promised to dissolve parliament after that. 

($1 = 133.4000 Sri Lankan rupees) 

(Reporting by Shihar Aneez and Ranga Sirilal; Editing by Prateek Chatterjee)

Euromoney arrives in SL

Sri Lanka has clinched the attention of one of the largest global banking-investment media and confab institutions For the first time-and its benchmark global investment publication is ready to start off its Lankan experience with no less than an international investors conference to be held in Colombo, as revealed on 12 May.

"This is the first time that we, the Euromoney Magazine, would be holding an investor confab of such a scale in Sri Lanka. We just don't want to hold a one off confab and leave but we are looking for long term engagement in Sri Lanka. We will also be honoured and delighted to partner with the 2016 May Expo Fair in Sri Lanka" said Tony Shale (CEO-Asia of Euromoney Institutional Investor) on 12 May in Colombo.

CEO Shale was addressing Minister of Industries and Commerce Rishad Bathiudeen at the EDB on Tuesday.

"We are listed in London Stock Exchange with a market cap of $3 Billion! We are present in 120 locations around the world. This is the first time that we, the Euromoney Magazine, would be holding an investor confab in Sri Lanka on such a global scale.

Euromoney championed the global capital market and its growth, and became the prime magazine of the wholesale financial world, its institutions and its users. We are at higher levels of investment-very much at B2B levels, as well as research and international conferences and symposia" said CEO Shale and added: "We are looking at holding an investment conference and in principle agreed to hold the global conference in Colombo this September. Euromoney is looking to bring 250 members of global financial and investment community to this event and another 250 from Sri Lanka. 

We are here to extend out invite to you to take part in this one-day Global Investment Forum Sri Lanka 2015 event. Our global investors are very keen on Sri Lanka and pushing us to hold the investor confab in Colombo sooner, rather than later. Even though September could be a tight time for Sri Lanka, the international investors too would like to be here around that time before end-of year season arrives-the reason for our timing.

We are inviting investors across the globe in all asset classes. We just don't want to hold a one off confab and leave but we are looking for long term engagement in Sri Lanka-a series of annual confabs in Colombo-starting from this September. We have 100s of niche investment titles and verticals and relevant sectors could be chosen starting with September's event."

"We continue to attract investors thanks to the vision of President Maithripala Sirisena and I am confident that Euromoney's arrival will enhance our international investment profile" said Minister Bathiudeen and added: "I and my Ministry officials are ready to extend our fullest support to Euromoney. We are also planning to hold our global export exposition called Expo 2016 in Colombo and we are planning to expand the expo series to showcase our investment side too. We invite you to partner with us and take the lead in our investor expo in 2016 show."

"We are delighted to partner with the Investment Showcase of Expo 2016 and feel honoured. We bring the interest of powerful reader database as well as investors across the globe in all asset classes to this event."

Created in 1969, Euromoney magazine started covering the re-emergence of the international cross-border capital markets and today has a 12 million strong readership across the global investment world.
www.ceylontoday.lk

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.
www.dailynews.lk

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.
www.dailynews.lk

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.”
www.dailynews.lk

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.
www.dailynews.lk

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”.
www.dailynews.lk

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.
www.dailynews.lk

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. 
www.ft.lk