CORPORATE

Bangladesh strengthens trade ties with Sri Lanka

From left: DGM International Commercial Bank J. Durairatnam, GM PC Pharma Dilshad Ikram, Presenter Journey to Peace Kanak Chanpa Chakma, Immediate Past President SLBCCI S. Renganathan, High Commissioner for Bangladesh in SL Mahbub-Uz-Zaman, President SLBCCI Harikesha Wijesekera, SL High Commissioner in Bangladesh Sarath Kumara Weragoda, Vice President SLBCCI Zeeno Packir, Fashion Designer/presenter Aneela Haque, MD/CEO Eastern Bank Ali Reza Iftekhar.

Due to the initiatives of the Sri Lanka Bangladesh Chamber of Commerce and Industry (SLBCCI), Dhaka, Bangladesh, a trade and cultural delegation from Bangladesh - leading businessmen and professionals, along with visitors from 75 other countries and 100 Sri Lankan entrepreneurs participated at the international Buyer/Seller Meet 2010(BSM 2010), recently.

This inaugural mega trade and investment promotion was hosted by the Ceylon Chamber of Commerce and supported by the Sri Lanka Ministry of Foreign Affairs, Department of Commerce, EDB, BOI and the Tourism Development Authority.

Deshi Colours, a fashion show by Bangladeshi designer Aneela Haque and Journey to Peace, a solo exhibition of Bangladesh tribal art by Bangladeshi artist Kanak Chanpa Chakma were the highlights of BSM 2010. BSM 2010's principal goals were the meaningful establishment of new, global links, expansion of existing contacts, and generally facilitating business partnerships, worldwide.

Deshi Colours, was sponsored by Eastern Bank Bangladesh and Square Group - a global business conglomerate whose home is Bangladesh. Journey to Peace was sponsored by Commercial Bank of Ceylon PLC.

Commercial Bank posts robust 3Q growth

A strong focus on core banking operations and a resurgence of credit demand have generated solid growth in key performance indicators for the Commercial Bank of Ceylon PLC (CB) at the end of the third quarter of 2010.

CB has reported pre-tax profit of Rs 6.519 billion for the nine months ended September 30, recording an impressive growth of 30.5 percent over the corresponding nine months of last year. The Bank's post tax profit grew 27 percent to Rs 3.727 billion in the same period.

Financial statements filed with the Colombo Stock Exchange indicate that growth was particularly strong in the third quarter, with the Bank's profit before tax growing 54.8 percent to Rs 2.494 billion, and its post-tax profit improving 47.8 percent to Rs 1.414 billion over the corresponding three months of 2009. One of the principal contributors to this performance was the robust growth of the Bank's loan book in the 3rd quarter as well as over the nine month period, CB's Chief Financial Officer Nandika Buddhipala said.

He said that Gross Loans and Advances increased by Rs 18.135 billion in the three months, from Rs 186.635 billion at June 30 to Rs 204.770 billion at September 30, a growth of 9.72 percent. Within these three months alone, non-performing loans reduced by Rs 2.602 billion or 13.65 percent, he said.

Gross loans and advances for the full nine months reflected a growth of 11.91 percent over the figure of Rs 182.9 billion at December 31, 2009. Total deposits grew by 7.6 percent to Rs 252.617 billion at September 30, an increase of Rs 17.873 billion over the nine months reviewed.

Taken as a group, the CB, its subsidiaries and associates posted pre-tax profit of Rs 6.547 billion at the end of 3Q 2010, recording a growth of 29 percent. Profit after tax for the period was up 25 percent to Rs 3.735 billion.

Buddhipala said that net interest income had increased by 32.5 percent for the nine months to Rs 11.705 billion. The interest expenses of the Bank recorded a drop of 23.78 percent responding to the low interest rate regime that prevailed during the period compared to the corresponding period of last year.

Interest income on loans and advances also recorded a drop of 16.70 percent. However, interest income on other interest earning assets, which mainly consist of treasury bills and bonds, increased by 29.87 percent, restricting the drop in total interest income to 5.38 percent, he said.

As a result, the net interest margin of the Bank improved to 4.57 percent during the period under review.

Net Interest Income growth was more pronounced in the third quarter, disclosing that increased lending had generated Net Interest Income of Rs 4.312 billion in the three months ending 30th September 2010, a growth of 41.5 percent compared to the corresponding period of last year.

Total net income of the Group for the review period stood at Rs 15.768 billion, reflecting a growth of 13.77 percent. Total assets reached Rs 364.614 billion as at September 30, an increase of 13 percent since December 31, 2009.