FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com


Join the forum, it's quick and easy

FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com
FINANCIAL CHRONICLE™
Would you like to react to this message? Create an account in a few clicks or log in to continue.

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka


Submit PostSubmit Post
ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post



Latest topics

» GLAS will be winner with Super Gain.
by invest thinker Today at 3:35 am

» PANASIAN POWER PLC (PAP.N0000)
by vijay singh Today at 2:26 am

» Maharaja's Advice
by madukp Today at 1:17 am

» Millennial Capital Youtube Channel
by MillennialC Yesterday at 11:54 pm

» Investor sentiment - will there ever be a recovery?
by xhunter Yesterday at 10:50 pm

» Everybody talks about huge selling. That means there are buyers in the market to buy these shares. Stock market for beginners
by Asoka Samarakone Yesterday at 9:17 pm

» Personal Loans in Sri Lanka from Hatton National Bank
by onenine87 Yesterday at 8:34 pm

» Daily Foreign Transactions
by Pradeep90 Yesterday at 6:51 pm

» Has the CSE reached the peak actually in January?
by FireandWater Yesterday at 6:10 pm

» WindForce Limited IPO
by ishanel2007 Yesterday at 5:44 pm

» Capital Savings Account with high interest rates from HNB Sri Lanka
by menasros Yesterday at 5:05 pm

» Regular Savings Account with benefits from HNB Sri Lanka
by menasros Yesterday at 4:36 pm

» Get Housing Loans |Hatton National Bank - Sri Lanka
by menasros Yesterday at 4:16 pm

» Blossom March
by samaritan Yesterday at 3:59 pm

» New committee to fast-track 289 projects
by judecroos Yesterday at 3:57 pm

» 'Cabraalnomics' vs 'Wijenomics'
by samaritan Yesterday at 3:52 pm

» AGSTAR PLC (AGST.N0000)
by Mr. X Yesterday at 11:15 am

» DIPD/HAYC/HAYL
by Wickyz Yesterday at 11:09 am

» ACL post share split trading and the future potential
by sheildskye Yesterday at 11:08 am

» Crypto , Digital Currency Trading , Forex
by MillennialC Yesterday at 12:59 am

EXPERT CHRONICLE™

ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)


CHRONICLE™ YouTube

CHRONICLE™ NEWS PRODUCTS

FINANCIAL CHRONICLE™

Views & Reviews, Analysis, Evaluations, Discussions, Gossip and Hot Tips relating to Sri Lankan companies listed on the Colombo Stock Exchange (CSE)
Contribute




DAILY CHRONICLE™

Latest news and articles published in Newspapers, Websites, Blogs and other online news sites relating to business and investments in Sri Lanka
Contribute



ECONOMIC CHRONICLE™

This is a section that provide news, views, analysis, predications relating to Political and Socio-Economic factors and how such activities affect the Stock Market and other economic activity of the Country.

Contribute




EXPERT CHRONICLE™

This is an exclusive section for Expert Articles which will help member to share knowledge through comments and responses of the members. All members are allowed to reply and make comments to these articles.

Contribute


Submit Post


CHRONICLE™ YouTube

Youtube Videos and other visual presentations relating Stock market and other investment advise submitted by members or other contributors.

Contribute


Submit Post


කොළඔ කොටස් වෙළඳපොළේ වංශකථාව
කොළඔ කොටස් වෙළඳපොළේ ලැයිස්තුගත සමාගම් කොටස් ගැන තොරතුරු¸විශ්ලේෂණ¸සාකච්ඡා¸ කටකතා¸රසකතා යන සියල්ල අපේම සිංහලෙන් කතා කළ හැකි ‘කතා මණ්ඩපය’

Contribute

Twitter Feeds
POPULAR COMPANIES
A

ABANS ELECTRICALS PLC

ACCESS ENGINEERING PLC Hot

ACL CABLES PLC

ACL PLASTICS PLC

ACME PRINTING & PACKAGING PLC

AGSTAR PLC

AITKEN SPENCE HOTEL HOLDINGS PLC

AITKEN SPENCE PLC

ANILANA HOTELS AND PROPERTIES PLC

ARPICO INSURANCE PLC

ASIA ASSET FINANCE PLC

ASIA CAPITAL PLC

B

BAIRAHA FARMS PLC

BALANGODA PLANTATIONS PLC

BIMPUTH FINANCE PLC

BLUE DIAMONDS JEWELLERY WORLDWIDE PLC

B P P L HOLDINGS PLC

BROWNS BEACH HOTELS PLC

BROWNS INVESTMENTS PLC

C

CARGO BOAT DEVELOPMENT COMPANY PLC

CENTRAL INDUSTRIES PLC

CEYLON COLD STORES PLC

CEYLON GRAIN ELEVATORS PLC Hot

CEYLON TEA BROKERS PLC

CEYLON TOBACCO COMPANY PLC

CHEVRON LUBRICANTS LANKA PLC

COLOMBO FORT LAND & BUILDING PLC

COMMERCIAL BANK OF CEYLON PLC

CITRUS LEISURE PLC Hot

COMMERCIAL CREDIT AND FINANCE PLC

D

DANKOTUWA PORCELAIN PLC

DFCC BANK PLC

DIALOG AXIATA PLC

DIALOG FINANCE PLC

DIPPED PRODUCTS PLC

DISTILLERIES COMPANY OF SRI LANKA PLC

DUNAMIS CAPITAL PLC

E

EAST WEST PROPERTIES PLC Hot

EASTERN MERCHANTS PLC

EXPOLANKA HOLDINGS PLC

E-CHANNELLING PLC

F

FIRST CAPITAL HOLDINGS PLC

G

GALADARI HOTELS (LANKA) PLC

GUARDIAN CAPITAL PARTNERS PLC

H

HATTON NATIONAL BANK PLC

HAYLEYS PLC

HAYLEYS FABRIC PLC

HAYLEYS FIBRE PLC Hot

HEMAS HOLDINGS PLC

HIKKADUWA BEACH RESORT PLC

HNB ASSURANCE PLC

HVA FOODS PLC

J

JANASHAKTHI INSURANCE COMPANY PLC

JOHN KEELLS HOLDINGS PLC Hot

JOHN KEELLS HOTELS PLC

L

LANKA ASHOK LEYLAND PLC

LANKA IOC PLC

LANKEM CEYLON PLC

LANKEM DEVELOPMENTS PLC

LAUGFS GAS PLC

LAUGFS POWER LIMITED

LOLC FINANCE PLC

LOLC HOLDINGS PLC

LUCKY LANKA MILK PROCESSING COMPANY PLC

M

MELSTACORP PLC

N

NATIONAL DEVELOPMENT BANK PLC

NATION LANKA FINANCE PLC

NESTLE LANKA PLC

O

ORIENT FINANCE PLC

OVERSEAS REALTY (CEYLON) PLC

P

PANASIAN POWER PLC

PEOPLE'S LEASING & FINANCE PLC

PIRAMAL GLASS CEYLON PLC

PRIME FINANCE PLC

R

RAIGAM WAYAMBA SALTERNS PLC

RENUKA AGRI FOODS PLC

RENUKA CAPITAL PLC

RENUKA HOLDINGS PLC

RICHARD PIERIS AND COMPANY PLC

RICHARD PIERIS EXPORTS PLC Hot

ROYAL CERAMICS PLC

S

SAMPATH BANK PLC

SEYLAN BANK PLC

SIERRA CABLES PLC

SINGHE HOSPITALS PLC Hot

SMB LEASING PLC

SOFTLOGIC HOLDINGS PLC

SOFTLOGIC LIFE INSURANCE PLC

SRI LANKA TELECOM PLC

SWISSTEK (CEYLON) PLC Hot

T

TEEJAY LANKA PLC

TESS AGRO PLC

THREE ACRE FARMS PLC

TOKYO CEMENT COMPANY (LANKA) PLC Hot

U

UNION BANK OF COLOMBO PLC

V

VALLIBEL FINANCE PLC

VALLIBEL ONE PLC Hot

VALLIBEL POWER ERATHNA PLC

W

WASKADUWA BEACH RESORT PLC


You are not connected. Please login or register

FINANCIAL CHRONICLE™ » DAILY CHRONICLE™ » Sri Lanka Commercial Bank 'AA+' rating confirmed: RAM

Sri Lanka Commercial Bank 'AA+' rating confirmed: RAM

Go down  Message [Page 1 of 1]

Malika1990

Malika1990
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
July 19, 2012 (LBO) - RAM Ratings has confirmed an 'A+' rating of Sri Lanka's Commercial Bank of Ceylon with a stable outlook.

"The ratings are premised on the Group’s strong market position as Sri Lanka’s largest privately owned licensed commercial bank and third-largest overall..," the rating agency said in a statement.
"The ratings also reflect COMB’s strong franchise and healthy financial performance, funding and liquidity, as well as good capitalization levels."

RAM Ratings Lanka reaffirms Commercial Bank of Ceylon PLC’s AA+/P1 ratings

RAM Ratings Lanka has reaffirmed Commercial Bank Of Ceylon PLC’s (“COMB” or “the Group”) long- and short-term financial institution ratings at AA+ and P1, respectively; the long-term rating has a stable outlook.

The ratings are premised on the Group’s strong market position as Sri Lanka’s largest privately owned licensed commercial bank (“LCB”) and third-largest overall LCB. The ratings also reflect COMB’s strong franchise and healthy financial performance, funding and liquidity, as well as good capitalisation levels.

Incorporated in 1969, COMB accounted for 12.34% of the LCB industry’s asset base as at end-December 2011. It ranked behind 2 state-owned banks, which took up 41.92% of the industry’s total assets. Given its size, COMB is also deemed one of the country’s 5 systematically important financial institutions by the Central Bank of Sri Lanka (“CBSL”). Moreover, the government has an 18.82% direct stake in COMB; this enhances the likelihood of state support if needed.

COMB’s asset quality is considered adequate in comparison to its peers. While its gross non-performing-loan (“NPL”) ratio is in line with those of its similarly rated peers, the Group’s asset quality is weighed down by its weaker gross NPL coverage levels and, relatively unseasoned loan portfolio amid strong growth in 2011.
The Group’s credit assets expanded 26.15% y-o-y to LKR 287.80 billion as at end-fiscal 2011, i.e. faster than the previous year’s 24.85% but slower than the industry’s 31%. On the back of loan expansion, COMB’s gross NPL ratio had improved to 3.43% as at the end of FYE 31 December 2011 (“end-FY Dec 2011”) (end-FY Dec 2010: 4.21%). By end-March 2012, the ratio remained relatively stable at 3.57%. Meanwhile, its gross NPL coverage ratio had also remained relatively stable at 51.97% as at end- FY Dec 2011 (end-FY Dec 2010: 52.26%); albeit weaker than similar-rated peers.

In the meantime, the Group’s performance is deemed healthy; although its net interest margin (“NIM”) of 4.43% last year was lower than most of its peers’ (FY Dec 2010: 4.73%), easing further to 4.42% in 1Q FY Dec 2012, its performance is supported by its operational cost efficiencies achieved through its low-cost delivery channels and economies of scale.

This is reflected in its cost-to-income ratio of 54.03% as at end-FY Dec 2011, which is better than its peers’; the ratio improved further to 45.87% in 1Q FY Dec 2012, backed by a large quantum of foreign-exchange gains, following the sharp depreciation of the rupee against the US dollar; these gains are expected to moderate to historical levels going forward. In line with rising business volumes and better cost management, its pre-tax profit increased 19.01% y-o-y to LKR 11.07 billion in FY Dec 2011, translating into a healthier return on assets ratio (”ROA”) of 2.73% (end-FY Dec 2010: 2.68%).

Elsewhere, COMB’s funding position is deemed healthy. Its funding mix is dominated by deposits, backed by its strong franchise and branch network, as reflected by its ability to attract deposits despite the prevalent low interest rate environment in 2011. COMB’s deposits accelerated faster than the industry’s pace last year, expanding 22.58% y-o-y Sri Lankato LKR 318.40 billion (industry: 20.78%).

On a related note, its loans-to-deposits (“LD”) ratio was elevated to 86.76% as at end-FY Dec 2011, albeit conservative relative to its peers’ (end-FY Dec 2010: 83.47%). The Group’s liquidity is also deemed healthy; COMB’s statutory liquid-asset ratio clocked in at 26.21% (end-FY Dec 2010: 29.74%), before easing slightly to 26% as of end-March 2012 on the back of loan growth, but still in line with most of its peers’.

Furthermore, COMB’s capitalisation levels are deemed good; despite loan expansion, its tier-1 and overall risk-weighted capital-adequacy ratios (“RWCARs”) came up to 12.11% and 13.01%, respectively, as at end-FY Dec 2011 - in line with its peers’.

Its capitalisation levels had strengthened following an LKR 4.86 billion rights issue last year. As at end-March 2012, the ratios had eased to a respective 11.44% and 12.73% due to loan expansion. Going forward, RAM Ratings Lanka expects COMB’s RWCAR to dip to just below 12% in line with the Group’s planned expansion. Meanwhile, its ratio on net NPLs to shareholders’ funds stood at 13.10% as at end-FY Dec 2011 (end-FY Dec 2010: 18.44%) - among the industry’s best.
http://www.lbo.lk/fullstory.php?nid=1013058567

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum