Singhe Hospitals IPO full

The Initial Public Offer of 100,000,000 ordinary voting shares of Singhe Hospitals Ltd at Rs 2.50 per ordinary voting shares has been oversubscribed.

The company has received applications for subscription of more than 100,000,000 ordinary voting shares of Rs 250 million by 8.30 a.m on 30 March 2015 and that in terms of the prospectus the subscription was closed yesterday at 4.30 p.m.
/www.dailynews.lk

Ceylinco Life market leader for 11th year with income of Rs. 18.54 b

Life Fund exceeds Rs.60 b; assets grow to Rs. 71.07 b

Ceylinco Life has reported total income of Rs. 18.54 billion for the 12 months ending 31December 2014 with premium income of Rs. 12 billion, emphatically retaining its position as the country’s largest life insurer for the 11th consecutive year.

Gross written premium income recorded an increase of 7.9% over the previous year, while investment income improved by 1.78% in the review period to Rs. 6.83 billion, the company said in a filing with the Colombo Stock Exchange.

The value of Ceylinco Life’s investment portfolio appreciated by 12.72% to Rs. 57.2 billion, a noteworthy growth in the context of the generally lower rates of return on interest bearing assets during the year.

Total assets grew by Rs. 7.12 billion or 11.14% to Rs. 71.07 billion.

The company’s Life Fund recorded a net growth of Rs. 7.26 billion or 13.75% over the 12 months to Rs. 60.02 billion at the end of the year in a strong indication of the financial strength of Ceylinco Life, the company said.

“It was a tough year, but our unwavering focus on business fundamentals and prudent investment enabled the company to post an impressive performance without being distracted by challenges or extraneous matters,” Ceylinco Life’s Managing Director and CEO R. Renganathan said. “These results are also an irrefutable indication that Ceylinco Life continues to enjoy the trust and confidence of policyholders and prospective customers.”

He disclosed that Ceylinco Life sold 139,777 new policies in 2014 at an average of 11,648 per month, with improved sales of retirement plans contributing to the growth in premium income in the year under review.

The company’s policyholders received more than Rs. 4.8 billion in benefits in 2014. This included maturity and other survival benefits, claims, and annual bonuses.

At the end of the year under review, Ceylinco Life’s investment portfolio comprised of Government securities (50%); licensed private banks (15%); State banks (9%); real estate (9%); corporate debt (14%) and others (3%). These investments are made in conformity with the investment guidelines stipulated under the Regulation of the Insurance Industry Act No. 43 of 2000 and are subject to regular monitoring by the Insurance Board of Sri Lanka (IBSL).

One of the highlights of 2014 for Ceylinco Life was the international recognition the company received when World Finance adjudged the company the ‘Best Life Insurance Company in Sri Lanka.’ The prestigious UK-based bi-monthly magazine gave Ceylinco Life high markets in several areas of assessment including efficiency in processing new business, focus on customer retention, employee and agent training, ensuring best practices within the company, financial performance, market research and measuring customer satisfaction.

Independently rated one of Sri Lanka’s most valuable brands, Ceylinco Life has maintained its leadership of the country’s long term insurance sector from 2004 onwards. 

The company operates the largest branch network among local life insurance companies, and has won multiple international and local awards for its commitment to the community and success in brand equity building.
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Sri Lanka's Bank of Ceylon December net down 43-percent

COLOMBO (EconomyNext) - Sri Lanka's Bank of Ceylon said December 2014 quarter net profit fell 43 percent to 3.1 billion rupees from a year ago with a sharp rise in interest income but impairment charges growing heavily as well.

Total income for the quarter of the biggest state-owned lender was stagnant at 36 billion rupees, according to audited results filed with the Colombo stock exchange.

Net interest income rose 21 percent to 14 billion rupees as interest income fell 2.4 percent to 31 billion rupees while interest expenses fell at a bigger 16 percent to 17 billion rupees.

But trading income fell 10 percent to below one billion rupees and impairment charges rose 440 percent to 4.8 billion rupees.

Diluted earnings per share were 576.77 rupees in the December 2014 quarter.

For the 2014 financial year, diluted EPS went up almost 10 percent to 2,679.29 rupees with net profit rising almost 18 percent to 14.4 billion rupees.

Total income for the year was stagnant at 133 billion rupees. Net interest income rose 3.6 percent to 41 billion rupees.

Net fee and commission income went up a sharp 40 percent to 8.3 billion rupees.

The share of profits of associate companies before tax doubled to 462 million rupees during the year.
 

Sri Lanka sells Rs20bn in 10-year bonds

COLOMBO (EconomyNext) – Sri Lanka has sold 20 billion rupees in 10-year bonds at a weighted average yield of 10.03 percent and 5.3 billion rupees in five-year bonds at a yield of 5.07 percent, the state debt office said.

It offered 20 billion rupees in 10 year bonds at a coupon rate of 10.25 percent and five billion rupees in five year bonds at a coupon of eight percent.

The debt office received bids of 48 billion rupees for the 10 year bonds and bids of 22.8 billion rupees for the five year bonds.

Sri Lankan shares fall for 6th session on margin calls, political woes

(Reuters) - Sri Lankan shares fell for a sixth straight session on Monday and closed at their lowest in more than eight months as mostly retail investors sold their stocks to settle margin trading, while political worries also weighed on sentiment.

The main stock index ended down 1.33 percent, or 91.09 points, at 6,782.43, its lowest close since July 24 and moving away from a key psychological support level of 6,800. It has lost 7.31 percent in the past 21 sessions.

"Investors have been selling blue chips and political uncertainty still weighs," a stockbroker said on condition of anonymity.

Analysts expect the next support level at 6,500.

Shares in Commercial Bank of Ceylon Plc, the country's biggest listed lender, fell 2.46 percent. Top mobile phone operator Dialog Axiata Plc fell 2.78 percent.

The market heavyweight John Keells Holdings Plc fell 2.14 percent to a 32-month low of 195.50 rupees.

The day's turnover was 457.3 million rupees ($3.44 million), less than half of this year's daily average of 1.19 billion rupees.

Foreign investors were net sellers for the sixth straight session. They have sold a net 42.7 million rupees worth of shares on Monday, extending the net foreign selling in the past six sessions to 373.7 million rupees worth shares. But they have been net buyers of 2.98 billion rupees so far this year.

Analysts said concerns that the government's decision-making process would slow down weighed on sentiment after President Maithripala Sirisena formed a national government incorporating the main opposition party in a bid to push through reforms and preserve political stability. 

($1 = 132.9000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Gopakumar Warrier)

People’s Bank posts best ever results in 53 years

Group profit before tax exceeds Rs 21 billion

Notching a host of record breaking numbers, People’s Bank closed 2014 with an impressive performance, posting the milestone of Rs 1 trillion in its balance sheet, only the second bank in Sri Lanka to do so.

People’s Bank also notched the best profitability for an year end, since its inception in 1961. Augmenting its balance sheet of Rs 1 trillion, this year’s Profit Before Tax inclined 67.2% to stand at Rs 17,231 mn, while Profit After Tax was pushed upwards by an impressive 89.9% displayed at Rs 14,219 mn. The Bank’s financial performance for 2014 is unequivocally impressive. Net Interest Income is posted at Rs 30,118 mn, while the Net Interest Margin reached 3.1 %, despite the entire banking industry battling the downward pressure exerted on interest rates. Gross Interest Income reached Rs 84,480 mn, compared to Rs 110,441 mn last year, primarily due to this decline in interest rates, coupled with the downsizing of the pawning portfolio. Interest Expense stands at Rs 54,362 Mn against last year’s.

Rs 73,791 mn with the decrease attributed to the cascading impacts of declining interest rates and replacing of higher cost deposits with low cost saving deposits growth. Observing the details of the impressive Rs 1 Tn balance sheet, Gross Loans and Advances reached Rs 685,310 Mn by end 2014, indicating an incline of 0.6%. With the permeating global gold crisis impacting the pawning industry significantly from 2013 onwards, the Bank was prudent and instituted some dynamics to decrease its exposure which emerged at 16.6% in 2014 of the total Gross Loans, which in 2013 stood at a high of 28.9%. Pawning balance reached Rs 113,946 Mn indicating a reduction of Rs 83,183 Mn in comparison to last year. The Bank focused emphatically on broadening its lending portfolio, heralding an increase to 87,026 Mn in lending to other customers.

With probably the country’s largest savings base now exceeding Rs 318 Bn with increasing customer confidence, Deposits reached Rs 793,342 Mn indicating a 4.1% improvement over 2013. This was due to the Bank taking advantage of the low interest rate regime and aggressive marketing and promotional campaigns aimed at mobilizing low cost deposits. Having a commendable CASA ratio of 46.3% , the Bank’s Saving Deposits grew by Rs 62,967 Mn, although Time Deposits declined by

Rs 42,945 Mn. Advances to Deposits ratio is detailed at 86.4% for end 2014.

Chairman Hemasiri Fernando said the Bank has proven repeatedly that its unique brand of ‘banking by the people, for the people’ is the formula to its success. “We also continue being the most accessible bank in Sri Lanka, possessing the widest branch network of 739 branches and in excess of 3,000 strong ATM network, the largest in the country.

But Fernando adds that the Bank must continue to foster its stringent compliance culture, as well as that unrelenting focus on ethics, transparency and accountability.

“We have earned a rating of AA+ by Fitch Rating, which proves that we are a stable and progressive bank. We have also showcased our leadership prowess in an intensely competitive banking environment with the results you are seeing today and also the continuous progressive initiatives the Bank introduces to optimise performance and build sustainable relationships with our stakeholders.”

CEO and General Manager N. Vasantha Kumar said “Being a state owned bank, we have an ingrained responsibility to ensure that our stakeholders’ trust and confidence is consistent, strong and enduring. This means, that our focus should not only centered on a quantitative sense, though important, as seen in our impressive results, but also in the qualitative dynamics we continue to infuse through the decisions we make. Whatever we do, the impact on our stakeholders must be positive.” www.dailynews.lk

HNB in 'landmark' deal with ADB Raising USD 100 million from 7-year loan

HNB entered into a landmark agreement with the Asian Development Bank (ADB) to raise USD 100Mn by way of a 7 year senior debt. This is the largest transaction by ADB with a Sri Lankan private sector bank and the funds raised would be deployed towards infrastructure development projects with special emphasis on renewable energy, power and irrigation which are key sectors in the economic resurgence of Sri Lanka.

ADB which was founded in 1966, has been driven by an inspiration and dedication to improving people's lives in Asia and the Pacific. It is committed to help developing member countries to evolve towards modern economies that are well integrated with rest of the world.

Commenting on this epic transaction Jonathan Alles, Managing Director, CEO of HNB PLC stated that "we are delighted to partner with ADB to raise long term funding for the Bank. This is testimony to the trust placed by international investors and funding institutions in HNB. Since 2012 HNB has raised nearly Rs 30 billion from foreign sources at attractive rates and this clearly demonstrates the Bank's sustainable business model, robust growth trajectory, strong capital structure and its lead position in the banking industry".

He added that "Sri Lanka in its journey of reaching upper middle class status will spur growth in corporate and SME investments and the availability of infrastructure would be a key enabler. We as a leading private commercial bank in the Country are pleased to facilitate these developments through partnering with ADB".

The agreement was signed in Colombo by Mrs Rose Cooray, Director and Mr. Jonathan Alles, Managing Director/CEO on behalf of HNB and by Ms Sri Widowati Country Director on behalf of ADB.

HNB became the first Sri Lankan bank to obtain an international credit rating and was assigned a foreign currency issuer rating of B1 on par with the sovereign rating by Moody's Investors Service, while it has a national long term rating of AA- (lka) by Fitch Ratings (Lanka) Ltd.
www.island.lk