[corporate news]

Capital Reach Leasing shares open on Dec. 8

Capital Reach Leasing Ltd., (CRLL) will expand its branch network to offer a wide range of products in the capital market, said Chairman, CRLL, Mayura Fernando.

He was addressing a ceremony on Tuesday to list shares on the Colombo Stock Exchange (CSE).

CRLL will list its shares on the second board of the CSE through the offer for sale of a portion of the Holding Company’s shares in CRLL.

The company will offer sale of 3,100,000 shares at Rs. 18 per share. The offer for sale of shares will open on December 8 and continue for 14 market days. The offer will close on December 30.

Fernando said despite many challenges the company has been growing steadily over the past few years recording a growth of 71 per cent in the lending portfolio.

CRLL posted a gross income of 83 per cent and maintained its profit growth of 38 per cent.

During the past two years the company has mobilised over Rs. 1 billion funds through securitisation from banks and the public. CRLL will maintain good asset quality by commencing a credit evaluation process which will help to avoid bad credit at the application level.

“Credit risk management practices are important in the credit market.

Through an asset liability committee, the company will ensure that the liquidity status and interest rate risks are properly managed and steps are taken to mitigate risks”, he said.

The company’s gearing ratio of 1:4 is low compared to the industry average. The higher gearing which CRLL hopes to achieve will result in higher returns.

Fernando said their shares should be valued on the future earning potential. The company will pay a dividend this year based on the performance up to August.

CRLL was registered as financial company in 1988 and over the years has grown to be a key player in the leasing, borrowing and real estate businesses. It caters to the growth SME sector which makes a salient contribution to the economy. LF

HNB Assurance - strong growth in turnover, profits

HNB Assurance PLC, rapidly emerging as the fastest growing insurance company in Sri Lanka, has recorded strong growth rates in turnover and profits for the nine months ended September 30, 2008.

According to the interim results recently published, the Company’s turnover grew by 30% to reach Rs. 1,379 Million for the first nine months of this year. Its turnover from General Insurance grew by 29% to reach Rs. 698 Million while the turnover from Life Insurance grew by 31% to reach Rs. 681 Million.

The Company’s Profit After Tax (PAT) also grew by 33% to record Rs. 48.2 Million for the nine months.

This was entirely based on the results achieved from the General Insurance business since the surplus from Life Insurance is recognised only after an actuarial valuation is carried out at the year-end.

Bharti Airtel maintains strong growth momentum

Bharti Airtel Limited announced its audited US GAAP results for the second quarter and half year ended September 30, 2008. It has again maintained its strong growth momentum.

The consolidated total revenue for the quarter ended September 30, 2008 of Rs. 9,020 crore grew by 42% and EBITDA of Rs. 3,699 crore grew by 37% on a year on year basis. The net income for the quarter ended September 30, 2008 was Rs. 2,046 crore, a growth of 27% over last year.

Bharti had 7.99 crore subscribers, as on September 30, 2008, an increase in the total subscriber base of 57% over the corresponding period last year and maintained its leadership position through an improved market share of all India wireless subscribers at 24.6% as on September 30, 2008, up from 23.4 compared to the corresponding period last year.

Chairman and Managing Director, Bharti Airtel Limited, Sunil Bharti Mittal said, “With record customer additions every month, Airtel continues to consolidate its leadership position in the market.

COMBank posts measured growth in first nine months

The Commercial Bank Group comprising Sri Lanka’s benchmark private sector bank, its associates and subsidiaries has reported a pre-tax profit of Rs. 5,549.7 million for the first three quarters of the year, a growth of Rs. 229.5 million or 4.31 per cent over the corresponding period in 2007.

In results released to the Colombo Stock Exchange, the Group said post-tax profit for same period amounted to Rs. 3,056.5 million, recording a marginal growth of Rs. 4.9 million or 0.16 per cent.

Commercial Bank’s Chief Financial Officer Nandika Buddhipala said that higher provisioning for debt, a slower growth in the advances portfolio and a noteworthy increase in financial VAT had slowed profit growth for the Commercial Bank Group, despite solid performances in some indicators in the nine months ended September 30, 2008.

Gross provisioning for bad and doubtful debts, including the statutory general provisions was increased to Rs. 1,689 billion in the period reviewed as against Rs. 1,191 billion in the corresponding nine months last year, he said.

The general provision on performing and overdue loans and advances as mandated by the Central Bank included in the total gross provisions amounted to Rs. 431.2 million.

Financial VAT increased by Rs. 437 million to Rs. 1,611 billion, while interest expenses grew by 34 per cent. The main reason for the increase in financial VAT is the change in the basis of the calculation from the basis that prevailed during the corresponding period in 2007, Buddhipala said.