Corporate

Pan Asia Bank profits up 33 per cent

Kimarli Fernando Director/CEO, Pan Asia Bank

Pan Asia Bank had an impressive performance in 2008, with growth in income and profits, enhanced service quality to customers and improved processes. The income soared by 40 per cent to Rs. 3,241 million driving up profit before taxes by 33 per cent to Rs. 422 million, 2008 during a period of change for the bank. Cost to income ratio improved from 58 per cent to 55 per cent.The liquidity and capital adequacy ratios have remained comfortably above targets throughout 2008, despite the market turbulence, reflecting the prudent approach to risk management.

The management of prudent liquidity ratios is critical for a sustainable banking organisation. During the year, the Bank focused on the need for adequate liquidity within the bank and was successful in maintaining an Asset to Deposit Ratio (ADR) of 85 per cent.The Bank's balance sheet position strengthened with total assets growing by 22 per cent Customer Advances and Deposits growing by 20 per cent and 19 per cent respectively compares well with the industry growth of 7.9 per cent and 11.2 per cent.Pan Asia Bank increased its focus towards corporate customers by adding some top companies to its portfolio recently and now has an exposure of approx 21 per cent to this key sector. Pan Asia Bank recently launched its "First Class" private banking service to high net worth individuals, differentiating its services from competitors.

The Bank's Non Performing Ratio deteriorated from 7.35 per cent in 2007 to 10.17 per cent in 2008 mainly due to high inflationary situation and overall adverse economic conditions that prevailed during the year affected the repayment capacity of the borrowers as experienced by the whole industry. The bank is aggressively following up and taking action towards recovery of the non-performing portfolio, majority of which is secured by tangible security.

Changes at Singer

Singer announced the retirement of their long-standing Marketing Director, Asita Abayasekera, with effect from April 1. Abayasekera, who also served as an Alternate Director on the Board of Directors, will be replaced by the Company's Senior Deputy Marketing Director, Nasser Majeed, who brings with him a wealth of international management experience, having served as General Manager for PT Singer Indonesia TBK.

Singer's Deputy Marketing Director, Kumar Samarasinghe, will run the broadbased high revenue earning "Singer Plus" channel as Director - Sales & Sewing Marketing, while Premalal De Silva, their previous Sales Director, will take on new responsibilities as the Director - Operations for Singer's Modern Retail Trade Channels, namely, "Singer Mega," "Modern Homes," "Sisil World" for the company's Trade and Institutional channels.

In making these strategic changes to its Key Management format, Singer is poised to maximise revenues generated from its various retail channels.

By focusing more keenly on these channels, which cater to different socio-economic groups of consumers, Singer will be better able to adapt to and anticipate the needs of these diverse groups, ensuring a better return on investment.

Appointed

Gihan Chintaka Jayaweera

Gihan Chintaka Jayaweera (37), is appointed Senior Director in, A.P. Moller - Maersk from April 1.

Gihan Chintaka Jayaweera, who is a Fellow Member of The Chartered Institute of Management Accountants (UK) started at A.P. Moller - Maersk Group in 1997 in Sri Lanka. He functioned as the Country Finance Manager for the Container Business and the Country Manager for Maersk Logistics during his time in Sri Lanka.

He moved to Denmark in 2004 as the General Manager responsible for the Business Control function in Maersk Logistics and has been holding progressive positions in the Container Business since then. Prior to joining A.P. Moller - Maersk Group he worked at KPMG and Vanik Incorporation Ltd. in Sri Lanka.Today, Gihan Chinthaka Jayaweera is responsible for the Process Improvement and Control function in Maersk Line, Centre Finance.

Jayaweera has supplemented his education, among others, in the Marketing field at the Chartered Institute of Marketing (UK) and has attended the Young Managers Programme at INSEAD.

Fitch affirms Hayleys

PLC at AA-(lka)

Fitch Ratings-Colombo/Singapore March 27. Fitch Ratings has today affirmed Sri Lanka-based Hayleys PLC's (Hayleys) National Long-term rating at AA-(lka). (AA minus (lka)) The Outlook is Stable.The rating reflects the sufficiently strong credit metrics of Hayleys on a standalone basis, the diverse dividend income base and strong control over its subsidiaries' dividend distribution policies, given Hayley's majority ownership and management control.

Fitch notes that the earnings of many of Hayleys' subsidiaries are under pressure as a result of the global economic downturn, which will result in lower dividend flows to Hayleys over the next 12 to 18 months. However, Hayleys has relatively low debt and operating expenses; hence Fitch views that it should be able to maintain a credit profile appropriate for the current ratings despite the lower dividend inflows.

Nevertheless, an increase in leverage as measured by adjusted net debt/Op EBITDAR for Hayleys on a sustained basis would place negative pressure on the rating.

Fitch views that this can arise as a result of a significant deterioration of dividend inflows from its operating subsidiaries and/or higher indebtedness of Hayleys, as well as an increase in debt of affiliated companies with recourse to Hayleys.

Sumithra group renovates hospital

The Sumithra Group renovated the Hasalaka Hospital under a community development project of the Group in collaboration with the Columbia Sportswear company, a client of the Group.The opening ceremony took place at 2.30 p.m. on April 3.