Corporate news

NDB Group records Rs. 1.15b profit after tax in 3Q, 2008

NDB Group reported a profit before tax of Rs 2.35 bln for the nine months ended September 30, 2008 as compared to Rs 2.31 bln for the corresponding period last year.

The profit after tax of the group was Rs 1.15 bln compared to Rs 1.26 bln for the corresponding period last year.

The Profit Before Tax and the Profit After Tax of the NDB group excluding the exceptional equity capital gains earned by the Bank during the corresponding period last year increased by 15% and 8% over the corresponding period.

NDB Bank took another step towards consolidating its position in the financial sector by purchasing 23.86% of shares owned by Bank of Ceylon in the Capital Development and Investment Company PLC (CDIC) for Rs 1.15 bln on July 11, 2008. Prior to the purchase, NDB owned 75.8% of CDIC, a public quoted company in the Colombo Stock Exchange.

The recent purchase of CDIC shares by NDB increases its effective shareholding in Eagle Insurance Company from 32.4% to 41.1%.

CDIC is now positioned as an effective vehicle for NDB's plans for local and regional growth.

NDB Bank is among the top ten companies selected by the Business Today magazine while its Fitch Credit rating AA (lka) reflects the bank's strong financial profile in terms of its strong capital base, good profitability and asset quality.

The NDB Group has a clear business strategy, which focuses on Commercial Banking (Corporate and Retail Banking), Emerging Corporates (SME), Project Finance, Specialised Commercial Markets, Investment Banking and Stock Brokering and Insurance.

HNB continues impressive performance

Hatton National Bank (HNB) continued its growth momentum in the third Quarter ended September 2008 by exceeding Rs. 5.0 Bn in operating profit before taxes while post tax profits increased to Rs. 2.56 Bn, which reflects a growth of 47% in post tax profits over the corresponding period in 2007.

Income for the period increased by 27% to Rs. 27.0 Bn. with net interest income increasing by 12% to Rs. 9.07 Bn.

The effect of high interest rates was reflected in the interest income and expenses which grew by 25% and 34% despite moderate growth in the loan book and deposits.

Non interest income improved by 43% during the period mainly from the increase in other income by approximately Rs. 1.0 Bn.

significant contribution of the other income was capital gains derived from the sale of two fully owned subsidiaries HNB Securities (Pvt) Ltd, and HNB Stock Brokers (Pvt) Ltd., to the newly formed Acuity Partners (Pvt) Ltd., which is a joint venture with DFCC Bank.

Additionally the Bank was in receipt of Dividend income of over Rs. 500 Mn.

Efficient cost management enabled the Bank to maintain the non interest expenses at mere 8% increase, a remarkable achievement considering the high inflationary conditions which prevailed during the period.

The Bank's pre tax and VAT cost to income ratio improved to 53.70% from 59.3% for the period and the pre tax return on average assets to 2.07% from 1.99% in December 2007.

72% profit growth at LB Finance

LB Finance reported an impressive profit growth of 72% compared to last year's corresponding period for the second quarter ending September 30, 2008.

Financial results also showed a 78% increase in interest income from Rs. 470Mn as at September 30, 2007 to Rs. 836Mn as at September 30, 2008.

Total assets have risen from Rs. 10.7bn as at March 31, 2008 to Rs. 13.8bn in the second quarter ending September 30, 2008. Deposits too have followed the upward momentum, showing an impressive Rs. 9.4bn. With a growing network of pawning outlets providing superior pawning solutions to a wide market the company's pawning portfolio too has increased in leaps and bounds, at a staggering Rs. 1.9bn as at the quarter ending September 30, 2008.

"Customers continuing confidence in LB Finance plays a big part in helping keep the Company on top," said Managing Director of LB Finance, Sumith Adhihetty. "A precise and adept operational system set in place, as well as, active customer focus too helps keep the Company on track".

Close to four decades in the business interweaves a company to not just the market but the very fabric of the country, a fact that LB Finance was testimony to when it outdid itself with its 2008 debenture issue for Rs.450 million being oversubscribed.

Sampath appoints three employees as Executive Directors

Harris Premaratne CEO (Designate), Aravinda Perera - Chief Operating Officer and Ranjith Samaranayake-Chief Financial Officer, have been appointed as Executive Directors of Sampath Bank.

The appointments of Premaratne and Perera would be with immediate effect, while Samaranayake's appointment would be effective from January 1, 2009.

Harris Premaratne and Samaranayake were former Senior Deputy General Managers of Commercial Bank, who joined Sampath Bank this year, after retirement from Commercial Bank.

SLT Group posts Rs 4,399m net profit in first nine months

Despite the adverse market conditions, the Sri Lanka Telecom PLC (SLT) group maintained the same profits level as of the first nine months of the previous year.

During the nine months ended September 30, 2008 the group achieved a net profit after tax amounting to Rs.4, 399 million and recorded a marginal growth compared to Rs.4, 335 million for the same period of the previous year.

The high performance of SLT's fully owned mobile arm, Mobitel, has improved the group revenue growth by 10% to Rs.35,049 million year on year. Further, 45% growth of data oriented services offered by SLT has also strengthened the increase of revenue.

Reduction in CDMA new connections revenue by 70% amounting to Rs.616 million has significantly impacted revenue growth. The domestic revenue has been maintained at the same level as the previous year, despite the tariff reduction in November 2007 and inflation driven economic factors.