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DateLine Sunday, 19 August 2007





Marriage Proposals
Government Gazette

Banking sector records significant growth in 1H, 2007

The Banking sector has shown a significant expansion during the first half of 2007 reflecting continued expansion in economic activity.

The growth of banking business and key performance indicators during the first half of 2007 are highlighted below.

* Increase in assets, loans and deposits by Rs. 203 bn (9.5%), Rs. 144 bn (11.2%) and Rs. 114 bn. (7.6%), recording a real growth of financial resource mobilisation and utilisation.

* Opening of 45 new banking outlets such as branches, extension offices and other service centres and 52 new automated teller machines (ATMs) facilitating greater access to finance. Of the new banking outlets, 14 were opened in the Colombo district while the remaining 31 were opened in locations outside the Colombo district.

Approvals have also been given to open a further 37 banking outlets and to relocate 22 existing outlets. * A pre-tax profit of Rs. 26 bn indicating a 23 % growth when compared to pre-tax profit of Rs. 21 bn reported during the first half of 2006.

This profit growth has led to increase the return on assets from 2.2% to 2.3%. Nearly 40% of the banking sector income is consumed by banks' operational expenses, staff and shareholders while 50% is given to depositors and creditors by way of interest payments and the balance 10% to the government as taxes.

* Maintenance of non-performing loans at a ratio around 5.7 % of total loans despite the high growth in loans.

* Expansion in credit card advances by Rs. 3 bn registering a real growth of 10% while maintaining the non-performing credit card loans around 6%.

* Increase in capital funds by Rs. 21 bn or 13 % indicating enhanced cushion for banking risks.

Accordingly, the capital funds as against the estimated risks on banking business were maintained around 13% when compared to the international norm of 8%-10%.

* Growth of liquid assets (the assets that can be sold for cash easily to meet the funding needs) by Rs. 63 bn or 11%.



Gamin Gamata - Presidential Community & Welfare Service
Mount View Residencies

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