[Corporate news]

Eagle revenue up 25% to Rs. 3,341m in 1 H, 2008

Eagle Insurance PLC recorded a consolidated revenue of Rs. 3,341 million for the first six months of 2008, a growth of 25% over the corresponding period in 2007.

The gross written premium income of the Group for the first half of 2008 grew by 17% to Rs. 2,994 million over the corresponding period of 2007.

Life and general insurance premiums of Rs. 1922 million and Rs. 1071 million grew by 12% and 28% over the corresponding period in 2007.

The Group recorded a net profit before tax of Rs. 49 million for the first half of the year, compared to the profit of Rs. 96 million in the corresponding period in 2007.

The decrease was mainly due to higher claims cost incurred by the general insurance business.

As in previous years, these half year profits do not include a contribution from long term life insurance business, which are determined annually after the actuarial valuation at the year end and are therefore only included in the full year results.

Commenting on the company's achievement the Managing Director, Deepal Sooriyaarachchi said, "We are committed to delivering our promise to all our stakeholders, who have placed their trust in us".

Sampath Bank records improved results in 1 H, 2008

The Sampath Bank group, which consists of the Bank, its subsidiary and associate companies recorded a post tax profit of Rs. 699.7 Million for the first half of 2008, as against Rs. 592.0 M for the corresponding period in 2007, a growth of Rs. 107.7 Mn or 18.2%.

The bank too recorded a post-tax profit of Rs. 639.1 Million for the period under review, compared to Rs. 544.7 Million for the first half of 2007, a growth of Rs. 94.4 Million or 17.3 %. However, corporate taxes of the group and bank for the first half of 2007 in the comparative columns were restated as Rs. 815.2 Million and Rs. 809.5 Million due to the reversal of the Deferred Tax Assets recognised on the Statutory General Provision on loan losses, made as per the new provisioning requirement of the Central Bank.

The pre-tax profit of both the group and the bank for the first half of 2008 recorded decreases of 6.1% and 7.4% as compared to the corresponding period in 2007.

This was largely due the drop in exchange profit by 67.4%, which in turn is primarily attributed to the drop in revaluation gains on the FCBU's retained profits kept in US Dollars, resulting from the appreciation of Sri Lankan Rupee against the US Dollar.

However, despite the adverse effect of this factor, both the group and the bank have recorded impressive growth in pre-tax profits in the second quarter of 2008, over the corresponding period in 2007, which amounted to 24.5% and 18.0%.

Laxapana Batteries turns loss into Rs. 3m net profit in 1q

Laxapana Batteries PLC, a quoted company recorded a net profit of Rs. 3 mn for the first quarter of the current financial year 2008/09 against a loss of Rs. 3.7 mn for the corresponding period, an increase of 181%.

The company which recorded net profits continuously for four years from 2004 to 2006/07 incurred losses in the previous year due to the sharp increase in world commodity prices including zinc mainly used by the company as a raw material. The net profits recorded during 2003/04 amounted to Rs. 263mn.

The company, one of the oldest manufacturing factories which commenced business in 1956, manufactures dry cell batteries and also franchises its brand name 'Laxapana' to market products such as penlight batteries imported at present.

On the basis of the first quarter profits the annualised net profits amount to Rs. 12 mn with an earnings per share of Rs. 1.33. Accordingly, a price earnings ratio at 5.26 is attractive compared to an overall PE of 8.5 on August 28.

Analysts said that the expected burst of the commodity price bubble, improved security economic activity shortly and reduction in finance cost from partial repayment of debt, the net profits would increase to around Rs. 22mn during 2008/09 with an earnings per share of Rs. 2.44 and PE of 2.86.

Standard Chartered Bank Sri Lanka assigned 'AAA(lka)'

Standard Chartered Bank Sri Lanka (SCBSL) has been assigned the 'AAA (lka)' National Long Term rating by Fitch Ratings, the outlook on the rating is Stable. The Bank has also achieved impressive corporate results for the first half of 2008.

"SCBSL's strong financial profile, supported by its high profitability and good asset quality, has enabled the bank to generate higher ROA compared with domestic LCB sector", according to the recently released Fitch Report. The Pre-Tax Profit of the Bank increased at a compounded annual growth rate of 31.5%, while the non-performing asset ratio has remained below 2% of the total portfolio, over the period 2004-07.

Customer deposits grew at an annual compounded growth rate of 17.1% over the corresponding period.

Customer assets and deposits have also grown by 28% and 11%, year on year, which supported the funded income growth of 30%, year on year.

Operating costs increased by 23% (year on year), which reflects the inflationary trend in the macro economy.

COMBank Bangladesh rating upgraded

The Commercial Bank's operations in Bangladesh have been awarded a rating of AA+ (Double A plus) for long term credit, an upgrade from the previous rating of AA, by Credit Rating Information and Services Ltd. (CRISL).

The short-term credit rating of CRISL for Commercial Bank Bangladesh is ST-1, the Bank said.

These ratings were based on the Bank's 2007 Balance Sheet.

"The previous rating of AA for long term was enhanced to AA+ by CRISL based on the bank's asset quality, capital adequacy, liquidity, diversification in product lines, IT infrastructure and corporate governance," said Commercial Bank's Country Manager in Bangladesh S. Renganathan.