Corporate News

HNB Group post tax profit grows 41% to Rs. 3.2 b in 2007

Hatton National Bank (HNB), its subsidiaries and associate companies continued with its impressive performance for the third consecutive year in 2007 by reporting a 47.5% increase in pre tax profits to Rs. 4,566 Mn.

Post tax profit attributable to the group was Rs 3,199 Mn which was a 40.5% increase over 2006. Commenting on the results, HNB's Managing Director Rajendra Theagarajah said, "We are delighted to be able to deliver such results especially against the backdrop of a domestic environment which saw inflation nearing the 20% level during the latter part of 2007.

The consistency in our performance during the past three years amply demonstrates the bank's ability to be resilient and delight stakeholders during challenging times.

Focus on innovation, agility and the ability to offer our customers value as a Team, has been the key driver of this outcome".

All the subsidiary and associate companies within the group performed exceptionally well with the Insurance subsidiary HNB Assurance leading the pack with after tax profits of Rs 123 Mn showing a 35% growth over 2006. It was also pleasing to see the Group's property development subsidiary Sithma Development, showing profits for the first time since its formation some five years ago.

Group Turnover increased by 38% to record Rs 31.9 Bn crossing an important Rs 30 Bn milestone. Growth in Net interest Income of 27% and Fee and Commission income of 23% contributed towards a healthy growth in Net Income of over 20%. Foreign Exchange Income contributed Rs 1,115 Mn recording a healthy increase of 44% over 2006.

New CEO for HSBC Lanka and Maldives

The new Chief Executive Officer, HSBC Sri Lanka and Maldives, Nick A. Nicolaou, arrived in Sri Lanka to take over from David J. H. Griffiths who will be leaving for HSBC New Zealand on April 5, to take up duties as Chief Executive Officer.

Nicolaou joined the HSBC Group in 1977 as an International Management Trainee and went on his first overseas assignment to Bahrain as a general banking executive from 1978-1980.

This was followed by a wide variety of management roles throughout the HSBC Group. From 1980-1988 he served in Hongkong, Japan and Australia. Postings followed to UAE; again in Hongkong and Taiwan from 1989-1997; and then to Canada as Senior Vice President Ontario Region until 2000.

He then returned to Japan as CEO and Deputy Country Manager for HSBC until 2002 and UAE as Head of Group Audit Middle East from 2002-2005.

Asian Alliance Insurance profits surpass Rs. 100m

Asian Alliance Insurance PLC (AAI) marked yet another exceptionally successful year recording a profit of Rs. 114 Mn before tax and Rs. 113 Mn after tax for the year 2007 recording a 60% growth over the previous year.

With this performance the Earnings Per Share increased to Rs. 4.63 and the Return on Capital increased to 42%.

Investment of the Company grew by exploiting the prevailing investment rate environment, with the yield increasing to an average of 14.5% with an increase to Rs. 1.5Bn. The Company met the required Solvency Margin of Non Life with a Solvency Ratio of 4.10 and of Life with a Solvency Ratio of 3.15 based on the Solvency rules applicable.

The company obtained a BB1 rating from Lanka Rating Agency for its claims paying ability. The Management views this rating positively, as AAI is a relatively new entrant to the industry. The rating achieved was awarded on a stand alone basis on the soundness of the company's operational and financial strength.

New appointments at Softlogic Holdings

Softlogic Holdings (Pvt) Ltd., a leading business and technology solutions company appointed Samantha Rajapakse and Harris Premaratne as Director/CEO of Softlogic Communications and Director, Softlogic Holdings (Pvt) Ltd.

Rajapakse counts more than 19 years of local and international experience in finance, information technology, venture capital, consulting and communication sectors. With over 40 years of experience at Commercial Bank, Harris Premaratne comes with a wealth of knowledge.