Corporate

NDB post tax profit up by 8% in 2008

The NDB Group reported a profit after tax of Rs. 1.7 billion, an increase of 4 per cent over 2007, whilst NDB Bank's profit after tax was Rs. 1.2 billion an increase of 8 per cent over the previous year. The bank maintains a steady return on equity of 12.44 per cent, one of the lowest Cost Income Ratios at 47 per cent and the lowest Non Performing Loans (NPL) ratio of 2.3 per cent in an industry, which averages an NPL ratio near 7 per cent. In the year under review NDB Bank also strengthened its liquidity position helped by customer deposits increasing by 25 per cent over 2007 and by obtaining additional credit lines from multi-lateral agencies.

The bank remains the most well capitalised bank among local banks with a Tier 1 Capital Adequacy Ratio of 14.42 per cent and a Tier 1 & 2 ratio of 17.29 per cent.

The products and services offered to the customers of the NDB Group include Insurance from Eagle Insurance Co PLC (Eagle), Stock Brokering from NDB Stockbrokers (Pvt) Ltd and Investment Banking from NDB Investment Bank Ltd, among others.

The NDB Bank also owns 99.6 per cent of Capital Development & Investment Company PLC (CDIC) which is an effective vehicle for NDB's plans for local and regional growth. NDB Bank obtained the necessary approvals from regulatory authorities both in Sri Lanka and Bangladesh to make an investment in Capital Market Services Limited, Bangladesh. Accordingly NDB Bank invested in Capital Market Services Limited, Bangladesh and acquired a controlling interest in the investee company in January 2009.

NDB Bank''s Fitch Credit rating of AA (lka), amongst the best in the industry, reflects NDB Bank's strong financial profile in terms of its capital base, profitability and asset quality. NDB Group continues to focus on its business strategy, which is to grow in the Commercial Banking (Corporate and Retail Banking), Emerging Corporates (SME), Project Finance, Specialised Commercial Markets, Investment Banking, Stock Brokering and Insurance areas.

The core banking revenue (net interest income, forex and commissions, etc) of NDB Bank grew by 12 per cent over the previous year.

The Profit Before Tax and the Profit After Tax of the bank, excluding the exceptional equity capital gains earned by the Bank during 2007 increased by 13 per cent and 32 per cent respectively over 2007.

Hemas turnover grew by 16% to Rs.118b

The quarter under review was an important one for Hemas as the company completed 60 years of business operations in December 2008, whilst marking its entry into several new industries. During the nine months ended December 31, the company's core businesses have performed well in a difficult environment, although overall earnings have declined due to start-up costs of new business ventures. During this period, Group turnover grew 16 per cent to Rs. 11.8 billion, but operating profits declined 9 per cent to Rs. 974 million. Group earnings during this period was Rs. 574 million, a drop of 14 per cent year-on-year.

For the quarter ended December 31, 2008, Group turnover was Rs 3.9 billion (up 13 per cent year-on-year) and Group earnings stood at Rs. 199 million (down 24 per cent year-on-year).

During the nine months under review FMCG recorded a turnover of Rs 3.5 billion, an increase of 13 per cent over the corresponding period last year. Operating profit for the period increased 18 per cent year-on-year to Rs. 443 million. Overall demand for most categories remained stable and the key brands continue to retain their market standing.

A program to educate parents on the importance of early childhood development named `Daru Petiyage Lokaya' supported by `Baby Cheramy' was launched by the Ministry of Child Development reinforcing our long term commitment to child care. `Diva', our brand of detergent powder received the prestigious accolades of the Gold award for Local Brand of the Year and the Silver award for Product Brand of the Year presented by the Sri Lanka Institute of Marketing. Diva is now the leading brand in terms of volume in the detergent powder category.

The Healthcare sector recorded a turnover of Rs. 2.8 billion for the nine months ending December 31, representing a healthy 23 per cent growth over the corresponding period last year.

Initial operating losses of the Hospital operation contributed to a 24 per cent drop in operating profits of the Healthcare Sector, which stood at Rs. 135 million for the nine months ending December 31. The highlight of the period under review was the formal opening of the first 100-bed-hospital in Wattala which commenced full operations in December.

Unilever acquires Wonderlight trademark

Wonderlight Consumer Products Ltd., who invited bids for the sale of its registered trademark `Wonderlight', a popular brand in the washing soap and detergents category, has accepted the offer made by Unilever Sri Lanka, from among the many bids made.

The sale is restricted to the purchase of the brand name only and does not include any assets or liabilities of the company. However in a separate development, Unilever Sri Lanka has agreed to purchase two soap powder packing machines from Wonderlight Consumer Products Ltd.

Unilever Sri Lanka already markets several popular products in the laundry category, including Sunlight, Rin, and Surf Excel. Surith Perera, Director, Home Care & Foods of Unilever Sri Lanka said that Unilever will integrate this brand into its brand portfolio, with specific offerings for each consumer segment.

Sampath declares highest dividend

The Board of Directors of Sampath Bank PLC has approved a first and final dividend payment for year 2008 to its shareholders at Rs. 4 per share (as against Rs. 3 per share in the previous year) which is the highest ever dividend payment by the bank so far.

The dividend will be paid, after the approval is obtained from the shareholders at the Annual General Meeting to be held on March 31, 2009.