corporate news

Sampath Bank records over Rs 1.0b post-tax profits in nine months

CEO Designate Sampath Bank Harris Premaratne said even if the Rights Issue is not approved at the Annual General Meeting (AGM) they can still maintain the capital adequacy ratio in the coming years as well as the growth.

Despite the turbulent market conditions that prevailed in the country, the Sampath Bank group which consists of the Bank, its subsidiaries and the associate company recorded impressive results for the nine-month period ended September 30, 2008.

The post tax profit of the group crossed the Rs. 1.0 billion mark and stood at Rs. 1,123.1 million, a growth of Rs. 228.9 million or 25.6%, over the post tax profit of Rs. 894.1 million recorded for the corresponding period in 2007.

Sampath Bank, the largest entity of the group too recorded a post-tax profit of over Rs. 1.0 billion and stood at Rs. 1007.7 million for the period, which amounted to a growth of Rs. 240.5 million or 31.3%, over the post tax profit of Rs. 767.2 million for the corresponding period in 2007.

However, corporate taxes of the Group and Bank for the nine-month period ended September 30, 2007, were restated as Rs. 1,021.4 million and Rs. 1,013.9 million, due to the reversal of Deferred Tax Assets recognised on the Statutory General Provision on loan losses, which were made as per the new provisioning requirement of the Central Bank.

The pre-tax profit of the Group for the period under review crossed the Rs. 2.0 billion mark and reached Rs. 2,111.4 million, a growth of Rs. 195.9 million or 10.2%, over the previous year.

The pre-tax profit of the Bank for the same period at Rs. 1,986.5 million too recorded a growth of Rs. 205.3 million or 11.5% over the corresponding period in 2007.

These results were achieved despite the drop in foreign exchange income by Rs. 375.2 million or 64.9% and the increase of 42.0% in the charge for Financial VAT during the period.

The drop in foreign exchange income was primarily due to the drop in revaluation gains on the FCBU's retained profits kept in US Dollars, resulting from the appreciation of the Sri Lankan Rupee against the US Dollar from Rs. 113.40 as at September 30, 2007 to Rs. 107.85 as at September 30, 2008.

The increase in Financial VAT was mainly due to the change in the method of calculation of this tax, as instructed by the Tax authorities.

Seylan Merchant Leasing's deposit base tops Rs. 1.5b

Seylan Merchant Leasing PLC (SMLL), a relatively new player among licensed finance companies, has built a deposit base of Rs. 1,580 million in 18 months since it received its finance company licence.

SMLL has also established a savings deposit base of Rs. 107 million between June 2007 and October 2008 and has the third largest savings base among local finance companies, a spokesman for the company said.

"SMLL experienced a lively year in 2007 with its conversion from a specialised leasing company to a registered finance company.

At present, we cater to a 45,000 strong customer base including 20,000 in savings," Seylan Merchant Bank Group Deputy Chairman Rohan Senanayake said. "The company has disbursed more than Rs. 2,000 million in leases and loans during this period, which is a significant achievement."

According to Senanayake, SMLL has performed reasonably well during its first one and half years in the context of the difficult market conditions that prevailed and has emerged as one of the more dynamic new players in the sector.

"The finance company licence was a most timely development and has taken us to a new phase of expansion and new business," he added.

In its first year, SMLL introduced three fixed deposit schemes and six savings products, including the popular Senehas Children's Savings Account.

New chairman of Steering Committee

Renton de Alwis who has been the Chairman of the Sri Lanka Tourism Promotion Bureau and the Tourism Development Authority for the past one year has been appointed Chairman of the Steering Committee that has been set up to spearhead the World Bank funded "Capacity Building Project" pursued by the Ministry of Tourism. For this purpose de Alwis will be stepping down from the Chairmanship of the Tourism Development Authority on October 31, but will continue as the Chairman of the Sri Lanka Tourism Promotion Bureau.

B. A. B. Goonetilleke who has senior Ambassador rank and a distinguished officer of the Sri Lanka Foreign Service whose immediate prior assignment was Ambassador in the United States of America has been appointed Chairman, Sri Lanka Tourism Development Authority from November 1.

New Deputy Chairman Sampath Bank

Sunil Wijesinha has been appointed Deputy Chairman with the election of Arthur Senanayake as the Chairman of Sampath Bank PLC.

Wijesinha has served the Sampath Bank Board for 15 years having first been a nominee of the Employees Trust Fund (ETF) Board while he was serving the ETF Board, and later on in 1996 the Board again invited him to serve on the Board of Sampath Bank.

He is also currently a member of the Audit Committee, Strategic Planning Committee, Remuneration Committee and Credit Committee of the Bank.

Wijesinha is currently Chairman and Managing Director of Dankotuwa Porcelain PLC and also serves on the Boards of Employees Trust Fund (ETF) and SriLankan Airlines.

Previously he held positions of Chairman, Employees Trust Fund Board (ETF) and Merchant Credit of Sri Lanka Limited, Vice Chairman, Colombo Dockyard, Managing Director, Merchant Bank of Sri Lanka Limited and also served on the Board of Colombo Stock Exchange.