[Corporate News]

BoC records Rs. 2.8 b post tax profit in 2007

The Bank of Ceylon (BoC) has recorded a pre tax profit of Rs. 4.5 bln and a post tax profit of Rs. 2.8 bln during the year 2007.

The aggregate asset base reached Rs. 438 bln, an increase of 16%. The deposit base grew by 18% or Rs. 46 bln to reach Rs. 309 bln at the end of the year.

A capital position of Rs. 21 bln enabled the reporting of a capital adequacy ratio of 11.4%. The ratio of Non Performing Assets declined from 5.82% in 2006 to 3.89% last year.

The revenue of the bank grew by 43% to reach an all-time high of Rs. 50 bln.

Advances to the corporate sector grew by 19% in 2007. Lending to the corporate sector continues to be spread over a well diversified portfolio covering all sectors of the economy.

Significant financing was provided for tea, rubber, gas and telecommunication industries and for a substantial national housing schemes, according to the annual report of the bank.

The BoC increased its share of the offshore market and the solid reputation and corporate relationships that have been built in other areas have assisted in penetrating this segment of the market. The bank has financed government and private initiatives to the tune of US$ 28.5 mln in the Maldives.

The treasury division of the bank has had a challenging but successful year with loans and deposits rising by significant levels. It handled extra volumes in local and foreign currency. A syndicate loan of US$ 210 mln was arranged while credit lines with foreign and local banks were enhanced.

According to the report the treasury division is an area marked for capacity enhancements. As a part of this initiative dealing room facilities have been upgraded while position reporting has been automated. New recruits have been trained as dealers.

A middle office has been formed and strengthened. The inward remittances department has been strengthened with in house developed software to interface with the core banking system.

The in-house developed e-cash system has been set up in various countries including the Middle East, Australia, Singapore, Greece and London.

The bank has joined several fund transfer schemes with its correspondents to enhance services to migrant workers in the Middle East, Italy, South Korea, Lebanon and Cyprus.

Hayleys to divest its stake in DIMO

Hayleys PLC will divest its shareholding of 28 per cent in Diesel and Motor Engineering PLC (DIMO), consequent to a strategic decision taken by its Board of Directors earlier this year.

The blue chip conglomerate said, “in accordance with a prior commitment, Hayleys agreed to sell the shareholding to Ranjith Pandithage and or his nominees.”

“Pursuant to reaching the aforesaid agreement, the same was recorded in writing by both parties by signing a share sale and purchase agreement on Wednesday.”

It said that “the Board of Hayleys is of the view that the agreement referred to above is in the best interest of Hayleys.”

For the year ending March 31, 2008 Hayleys PLC reported a profit before tax of Rs. 1,985 million on a turnover of Rs. 31 billion. Profit attributable to equity holders of the parent company was Rs. 453 million.

AMCHAM Board of Directors for 2008/09

The following are the new members of the Board of Directors of the American Chamber of Commerce in Sri Lanka (AMCHAM):

Moji Akingbade (General Manager, Paxar Lanka), President, Martin Dudek (Country Manager, DHL) - Vice President, Vijaya Ratnayake (Managing Director, Zodiac Medicals) - Treasurer, Prasath Nanayakkara (Head of Business Enablement, Virtusa) Secretary, Jean Pierre Assaf (Managing Director, Hayleys AIG) - Director, William Costley (General Manager, Colombo Hilton) - Director, Sriyan Wijeyeratne (Country Manager, Microsoft) - Director, Nick Nicolaou (Chief Executive Officer, HSBC Sri Lanka) - Director Priath Fernando (Chairman & Managing Director, United Tractors) - Director, Rezani Aziz (PR Practitioner & Director, Burson Marsteller) - Director, Parveen Dassenaike (Director, United Holidays) - Director, Jay Keller (Chief Information Officer, MAS Holdings) - Director, Amal Rodrigo (Country Manager, Maersk Lanka) Director.

Janashakthi IPO oversubscribed

Janashakthi Insurance Co Ltd (JICL) announced the oversubscription of its Initial Public Offering hours after the issue opened on Monday. This is the first IPO in Sri Lanka in two years. JICL’s IPO of 16,500,000 ordinary shares at Rs.12.00 per share received applications for over Rs. 800Mn, which is four times the amount, with counting still in progress.

The Company’s Board of Directors decided to exercise the option to issue a further tranche of 16.5 million shares.

R G Holdings, the Dubai wealth management arm of a UK-based investment company, sent in a single application for shares worth Rs 120 million (USD 1.15m), a company official said. RG Holdings specialises in wealth management with an innovative approach to property investment that is the key driver in generating above market returns for their elite clientele