Assets soar as Vallibel Finance records strong growth

Asset base up by 34% to 16.8 billion

Vallibel Finance affirmed its continuing ascendency, announcing yet another impressive performance in 2014-15. Pre-tax profits soared by 28% to exceed Rs.623 million over the previous year’s Rs.489 million. The company’s consistent rise in the financial sphere was further secured with net profits reaching Rs. 374 million, recording an increase of 23% from the previous year’s figure of Rs. Rs. 303 million. The company capped an outstanding year with all key indicators showing an impressive performance.

Increasingly popular as the name-bearer of the iconic Vallibel Group, public confidence in the company continues to grow as numbers for fixed deposits showing a sharp rise, year after year. The Fixed Deposits portfolio grew by 31% to cross the Rs. 12 billion threshold from the previous year’s Rs. 9 billion.

Recording the highest gains was the company’s asset base which recorded a 34% rise to reach Rs. 16.8 billion. The previous figure stood at Rs.12.5 billion.

Vallibel Finance was ranked amongst the top 50 most respected entities in the country by LMD in its 2014 survey and its significant rise in brand equity was recognized in LMD’s top 100 Most Valuable Brand Survey 2014 where Vallibel Finance’s rank rose to 67th, standing alongside some of the greats of the banking and finance sectors.

Mr. Rangamuwa, Managing Director avers that in a volatile industry subject to many unforeseen influences continuous good performance comes on the back of fundamental values. "As we keep reiterating, macro-economic landscape will always witness challenging times but the company’s proven formula of building values ensures a resilient performance, year after year.

The year under review saw more branches joining its expanding network which serves as a catalyst of development for people from diverse backgrounds. The lending portfolio increased by 26%. Total lendings stood at Rs.12.5 billion rising from a previous Rs.9 billion.

Vallibel Finance deals chiefly in Hire Purchase, Leasing, Pawning (Gold Loan), Fixed Deposits, Group Personal Loans, Mortgage Loans, Education Loans and Microfinance products deployed via a cutting-edge technological framework.

The increasing stature of Vallibel Finance, on the back of its impressive performances, is further augmented by the highly diversified Vallibel conglomerate led by corporate leader Mr. Dhammika Perera. Vallibel Finance’s standing in the business landscape is also affirmed by the upgrading of its rating to BBB- by Lanka Rating Agency. 

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Nestlé Lanka delivers another strong quarter

Nestlé Lanka strengthens its nutrition health and wellness leadership through strategic partnerships and the launch of micronutrient fortified products

*Revenue of LKR 9.0 billion, with a growth of 11.2% (year-on-year) for Q2 2015

*Net Profit of LKR 1.3 billion for Q2 2015

*Launches Ready-to-drink Nespray Nutri-Up, fortified with Vitamins A and D

*Partners with Sri Lanka Medical Association to strengthen nutrition health and wellness initiatives

*Continues school level sports activities through energy brand Milo

Nestlé Lanka PLC delivered revenue of LKR 9.0 billion with year-on-year growth of 11.2% in the second quarter of the year. The company announced a net profit of LKR 1.3 billion for the quarter.

For the first half of the year 2015, the Company announced revenue of LKR 18.3 billion with a year-on-year growth of 9.2% and net profit of LKR 2.5 billion.

"Our strong results are a reflection of the passion and capabilities of our people, coupled with the trust our brands enjoy amongst consumers. We are increasing our investments behind both, our people and our brands. We continue with our commitment to provide nutrition, health and wellness to the people of Sri Lanka through innovative products and guidance on lifestyle choices," said Shivani Hegde, Managing Director of Nestlé Lanka PLC.

The company recently launched Ready-to-Drink Nespray Nutri-Up, a quality product made using Sri Lankan fresh milk, and fortified with Vitamins A and D. Nespray Nutri-Up offers the wholesome goodness of milk while addressing the Vitamin A deficiency in Sri Lanka.

Building further upon its commitment to helping families enhance their nutrition, health and wellness in their daily lives, the company embarked on a strategic partnership with the Sri Lanka Medical Association, with the aim of generating public awareness of the importance of good nutrition and an active lifestyle. Nestlé Lanka also engaged in promoting physical activity amongst school children through its popular energy brand Milo, a name synonymous with school sports, touching over 200,000 kids through various sporting events in H1 2015. Additionally as part of the Nestlé Healthy Kids initiative, it rolled out the ‘IAAF Kids’ Athletics’ programme, encouraging over 30,000 children to become more physically active. www.island.lk

Commercial Bank rated Most Respected Bank in Sri Lanka for 11th consecutive year

Ranked No 1 overall for Honesty for 3rd year running

The Commercial Bank of Ceylon has been rated the most respected bank in Sri Lanka for the 11th consecutive year and the second ‘Most Respected’ corporate entity in the country overall for the fifth successive year in the 2015 LMD rankings of the Most Respected Entities in Sri Lanka.

The Bank has also been ranked No 1 in Sri Lanka for ‘Honesty’ for the third consecutive year, No 1 in Financial Performance and in the top five in several other areas of evaluation.

The only bank among the top five Most Respected entities in Sri Lanka in 2015, Commercial Bank has been ranked second overall in Management Profile, third overall in Quality Consciousness, fourth overall in Innovation, Corporate Culture and Vision and fifth among all entities in Dynamism and CSR.

The Bank has been the Most Respected bank in this prestigious ranking since its inception in 2005.

The latest edition LMD ranking of Sri Lanka’s most respected companies includes the largest and most diversified conglomerates in the country and some of the world’s best-known multi nationals.

"We are pleased to note that the Bank has increased the number of aspects in which it is ranked among the top five corporate entities in Sri Lanka in 2015," Commercial Bank Managing Director/CEO Mr Jegan Durairatnam said. "Of these, our consistent ranking of No 1 for Honesty, and leading the entire list for Financial Performance are the most significant, but we are also delighted to be ranked among the best in Sri Lanka in the other areas."

The LMD rankings are based on the opinions of the general public. Respondents include senior executives from the state and private sectors and their views are obtained under 10 areas of evaluation: Financial Performance, Quality Consciousness, Management Profile, Honesty, Innovation, Dynamism, Corporate Culture, CSR, Vision and Nation-mindedness. In nine of these 10 areas, the Bank was placed within the top five in the 2015 survey.

Commercial Bank operates a network of 243 branches and 615 ATMs in Sri Lanka and is the country’s largest private bank. The only Sri Lankan bank to be ranked among the Top 1000 banks of the world for five consecutive years and ranked the most valuable private sector brand in the country in 2014, the Bank was adjudged the Best Bank in Sri Lanka by FinanceAsia and Euromoney in 2015. Commercial Bank has also won multiple awards as Sri Lanka’s best bank from other international publications over several years. The Bank was adjudged one of Sri Lanka’s 10 best corporate citizens by the Ceylon Chamber of Commerce in 2013 and 2014. 

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Sri Lanka shares up; Wickremesinghe sworn in as prime minister

Reuters: Sri Lankan shares ended firmer on Friday on hopes of political stability after Ranil Wickremesinghe was sworn in as the new prime minister, and formed an alliance with President Maithripala Sirisena's party to push ahead reforms.

The main stock index ended 0.29 percent or 21.35 points firmer, at 7,471.17.

"We have seen some buying interest coming in," said Dimantha Mathew, a research manager at First Capital Equities (Pvt) Ltd.

"We expect the market to move after the formation of the new government."

The formation of the broad coalition will put Sirisena into a position to advance reforms begun when he quit Rajapaksa's government and in January defeated the nationalist strongman's bid to win an unprecedented third term as president.

The day's turnover stood at 959.4 million rupees ($7.2 million), less than this year's daily average of 1.14 billion rupees.

Foreign investors were net sellers of a net 10.3 million rupees worth of equities on Friday extending the year to date net foreign outflow to 1.17 billion rupees.

Shares in Ceylon Theatres Plc rose 8.99 percent and Hemas Holdings Plc rose 1.78 percent, leading the index higher. 

($1 = 134.0000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Anand Basu)

Asia Capital Q1 loss lower at Rs92 million

(LBO) – Sri Lanka’s financial services firm Asia Capital PLC reported a loss of 92 million rupees for the first quarter to June, down from a loss of 120 million rupees in the same quarter last year, in interim results released to the Colombo Stock Exchange.

Nevertheless, annual revenue rose to 1.6 billion rupees in the year to March, from 970 million rupees in the same period last year, driven by its investment and leisure sectors, the company said.

In their annual report released this week, Asia Capital said it will look at investments in the tourism industry, going forward.

“With the astronomical growth predictions for the country’s tourism industry, our focus, at least for the near-term would be on securing leisure-based projects,” J. Ratnayake, the chairman, said.

Asia Capital has shown highly variable profitability over the years. Overall loss attributable to shareholders has been around six hundred million rupees during the last ten years. Still, it made net profits of 538 million rupees in 2012, 988 million rupees in 2011 and 209 million rupees in 2010.

Some companies of the group performed poorly last year. According to notes to its financial statements, current liabilities of Asia Growth Fund 1 (Private) Limited exceeded its current assets by 117 million rupees. Asia Digital Entertainment (Private) Limited had accumulated losses of 92.8 million rupees, and Asia Wealth Management (Private) Limited has accumulated losses of 30.3 million rupees.

“The Financial Statement of the Group do not include any adjustment in relation to the recoverability and classification of recorded asset amounts or and classification of liabilities that may be necessary of the following Company is unable to continue as going concern,” Asia Capital said in relation to these companies.

Sri Lanka seafood exports dive 36-pct in first half after EU ban

ECONOMYNEXT - Sri Lanka seafood exports dived 36 percent to 85.8 million US dollars in the first six months of 2015, following ban by the European Union, official data showed.

The Central Bank said exports of fisheries products to the EU fell 72 percent in June 2014 from a year earlier. But exports to non-EU markets picked up 18 percent.

June exports of total fisheries products fell 26.7 percent to 13.5 million US dollars from 18.4 million a year earlier.

Sri Lanka's fish exports was banned after the country was unable to convince the EU that is was taking sufficient steps to counter illegal fishing by unidentified vessels suspected to be originating from the island.

Sri Lanka is setting up a vessel monitoring system to satisfy EU requirements.

Union Assurance reports steady progress in first half

Union Assurance PLC (UA) recorded a steady growth in gross written premium (GWP) and profits as at the end of the second quarter of 2015.GWP for the six months to the 30thof June 2015was Rs. 3.2 billion compared to Rs. 2.8 billion in the corresponding period, a growth of 15%.

Total net revenue excluding gains recorded from disposal of the non life business amounted to Rs. 4.4 billion, which was a 6% increase over the previous year. Total net revenue including the gain was Rs. 5.6 billion.

Profit after tax (PAT),including the disposal gain amounted to Rs. 1.4 billion. PAT excluding the disposal gain amounted to Rs. 194 million which is a 169% increase over the Rs. 72 million PAT reported in 2014. The above PAT figures do not include a surplus from the life business, as the surplus is transferred at year end following actuarial valuation.

As at 30th June 2015, UA's life fund stood at Rs. 25 billion with a healthy solvency ratio indicating the financial strength of the business.

The Board of Directors of Union Assurance have resolved that up to a maximum of 26,785,714 of its ordinary shares will be repurchased at a price of Rs. 167.80 per share on a pro rata basis of ten (10) shares for every thirty two (32) shares held.
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