Corporate News

NDB Bank purchases BoC shares of CDIC

NDB Bank took another step towards consolidating its position in the financial sector by purchasing 23.86% of shares owned by Bank of Ceylon (BoC) in the Capital Development and Investment Company Plc (CDIC) for Rs 1.15 Bn. Prior to the purchase, NDB owned 75.8% of CDIC, a public quoted company in the Colombo Stock Exchange.

Aviva NDB Finance Lanka (Pvt) Ltd (ANFL) is the majority shareholder of Eagle Insurance Plc with 87.27% shares. CDIC’s shareholding in ANFL is 41.56% while Aviva International Holdings (Pvt) Ltd holds 58.44%.

The recent purchase of CDIC shares by NDB increases its effective shareholding in Eagle from 31.5% to 41.42%. CDIC is now positioned as an effective vehicle for NDB’s plans for local and regional growth.

With long-term sustainable returns, the bank has done well in terms of profitability and has a quality portfolio with the lowest Non-Performing Loans in the industry among local banks.

The bank’s low cost income ratio gives it a competitive advantage while the growth in its deposit mobilisation is a consequence of its expanding distribution network. NDB Bank is also well-capitalised with a strong balance sheet.

NDB Bank has 40 branches, supporting various business areas - Corporate Banking, Project Financing, SME lending, Retail Banking, Investment Banking and Insurance.

NDB Bank - the strongest capitalised private bank in Sri Lanka, was recently affirmed by Fitch Ratings Lanka with a National long-term rating of ‘AA (lka)”. This reflects the bank’s “strong financial profile in terms of its high capital base, good profitability and asset quality”.

The bank was also ranked among the Top 10 Companies in Sri Lanka for the financial year 2006-2007, selected by the “Business Today” magazine.

DFCC Vardhana Bank records 97% growth in interest income on loans and advances for 2007

DFCC Vardhana Bank has recorded an impressive 97% growth in interest income loans and advances which amounted to Rs. 1,812 million last year corresponding with the figure in 2006, which was Rs. 922 million. Apart from the growth in interest income on loans and advances, the underlying loan portfolio had grown by 43%.

The interest yield relating to this income is 19.6 per cent of the average loan and advances portfolio or 20.2 per cent on the lending portfolio net of the loan loss provisions.

In his annual review of the Bank’s operations for the year 2007, Managing Director and CEO of DFCC Vardhana Bank, L.G. Perera identified the income growth to be propelled by the portfolio growth as well as by repricing of lending products in line with market trends.

Perera said that an easing up of the interest rates is in the greater good of the market which could only come from a favourable external environment and an improved domestic political climate which would allow macro-economic management to be in line with the accepted norms.

The bank’s loans and advances portfolio has increased from Rs. 8 billion to Rs. 11.4 billion registering a 43% growth during 2007, while the average credit growth in the banking sector during the year was in the region of 30 per cent. The lending portfolio consists of both corporate and personal banking customers.

In the hope of achieving steady growth in the bank’s loans and advances portfolio, Perera said that the bank will be able to significantly expand the customer base with the new branches as well as the branches to be opened which will go into full scale operations next year.

In addition, during 2007, the total customer deposits had increased remarkably by 55% to Rs. 12.1 billion from Rs. 7.8 billion in the previous year.

Landmark year for Ceylon Glass

Ceylon Glass Company Limited (CGCL) reported a sales value of Rs. 2,014 million and a Pre Tax Profit of Rs. 49 million compared to last year results of Rs. 1,857 million and Rs. 184 million, whilst ensuring a 23% GP margin as against 25% of the previous year for the year ended March 31, 2008.

“This has been a landmark year in the 50-year-old history of the Company. The successful completion of a major expansion and modernisation project of commissioning a new 250 tpd plant at Horana was achieved during the past year.

This plant has more than doubled the capacity as compared to the Ratmalana plant with a total investment of around Rs.3.7 billion.

The plant was set up on December 10, 2007. Since then we have successfully relocated our entire manufacturing facilities from Ratmalana to Horana”, said CEO, CGCL, Sanjay Tiwari.

The Company also plans to sell the 21-acre land at Ratmalana.

The new facility is equipped with five manufacturing lines of which four are already in operation and the fifth line would be in operation this month.

Forestree Investments new addition to Access family

The Access Group of Companies which was set up in 1990 has diversified with over 30 companies operating in various fields.

In August 2007 Access was voted as one of the most respected companies in the country in a survey carried out by A. C. Neilson for Lanka Monthly Digest.

In late 2007 Access ventured out to yet another field: Teak plantations and hence a subsidiary which is a public quoted company registered with the Board of Investment was incorporated with a prime objective of helping to promote and foster sustainable tropical forest cover whilst guaranteeing excellent returns to local and foreign investors.

Investment opportunity in Teak is nothing new to the Sri Lankan investor but yet Forestree Investments Limited has pledged to do it differently by offering a unique service, systemised process control and management of the entire project right throughout the growth period.

The passion to safeguard the environment is vividly demonstrated by the Forestree team by carefully selecting land which is ideal for Teak plantation but have been previously cut and slashed for timber, cattle grazing or chena cultivation.

For better results, the planting is done during the monsoon rains. A spokesman for Forestree Investments said that they would manage all aspects of the project up to the harvest period and ultimate sale of the investor’s timber to Teak wholesalers.

Forestree Investments is taking over the responsibility to ensure that the project yields better returns to the company as well as the investors.

Forestree Investments is also providing further guarantees to attract as many investors to this venture. Additional young trees are planted as a buffer on location and on different locations for any damage that may be caused to the crop through natural disasters.

The company also assures a minimum of one cubic metre from each tree at the end of growth cycle which would translate to a minimum price of Rs. 265,000 per tree.

Ceylinco Life produces first MDRT Life Member

A top sales achiever at Ceylinco Life has become the first Sri Lankan to be designated a ‘Life Member’ of the Million Dollar Round Table (MDRT) by achieving the stipulated sales targets for ten straight years.

Senior Sales Promotions Manager of the Wennappuwa branch of Ceylinco Life Nihal Champika Fernando has brought honour to Sri Lanka by participating in the MDRT, the elite forum of the world’s top life insurance sales professionals for ten years.

Fernando who joined Ceylinco Life in 1990 as a Sales Consultant has won many accolades during his career for performance excellence. He first qualified to the MDRT in 1993 for his sales performance of the previous year and was the first Sri Lankan to attend the forum.

“Life membership of the MDRT is the pinnacle of achievement worldwide for a life insurance sales professional,” said Chief Executive Director of Ceylinco Life R. Renganathan, “Champika’s consistency over a decade in terms of performance brings honour not just to him, but to the country’s insurance industry as a whole.”

He said this achievement also demonstrates the value of the company’s continuing efforts to inspire and train its sales officers to increase levels of professionalism and performance.

“It is very rewarding to get into a profession like life insurance where I can use my abilities to the fullest,” said Fernando. “I am glad to bring honour to my company which helped me to sharpen my talents and to achieve success in life.”

Fernando was adjudged the Best Sales Consultant of the company at Ceylinco Life’s Annual Awards for five consecutive years from 1991 to 1995. From 1994 to 2005, Fernando has been recognised as the highest premium collector at Ceylinco Life.

In addition to these accolades, he has been awarded the LIMRA International Quality Award for five consecutive years from 2002-2006 for excellent production and outstanding persistency in the life insurance business.

Hayleys invites Dhammika

The Board of Hayleys PLC has invited Dhammika Perera to join the Board as a Non-Executive Director.

The Board said it believes that Perera will provide input and value to further enhance the company’s performance.