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

» ROYAL CERAMICS PLC (RCL.N0000)
by Dilip Today at 11:55 am

» GLAS will be winner with Super Gain.
by ronstyn53 Yesterday at 10:22 pm

» CIC HOLDINGS PLC (CIC.N0000)
by abey Yesterday at 9:07 pm

» First capital holdings CFVF.N0000
by invest thinker Yesterday at 4:46 pm

» LANKEM DEVELOPMENTS PLC (LDEV.N0000)
by Wolf86 Yesterday at 2:00 pm

» ???? අප්‍රේල් 16 ???? මේ දින 3 කෙටි සතියත් කොළපාටින් අවසන් වුනා
by dayandacool Yesterday at 1:58 pm

» Lanka Walltile PLC Investment Case
by judecroos Yesterday at 8:55 am

» Which is the best at current market condition ? ( At least 30% within 30 Days)
by judecroos Yesterday at 8:39 am

» Daily Foreign Transactions
by Pradeep90 Fri Apr 16, 2021 8:03 pm

» Big opportunity in Kegalle Plantations
by EquityChamp Fri Apr 16, 2021 2:58 pm

» RAIGAM WAYAMBA SALTERNS PLC (RWSL.N0000)
by stockchaser Fri Apr 16, 2021 2:42 pm

» විජේදාසගේ... voice cut ප්‍රතිඵල
by nigma Fri Apr 16, 2021 11:59 am

» If you buy a stock that’s not going up in price, you won’t make any money. STOCK market for beginners
by dayandacool Fri Apr 16, 2021 11:31 am

» B P P L HOLDINGS PLC (BPPL.N0000)
by vikiperera Fri Apr 16, 2021 11:17 am

» VPEL VPEL VPEL
by invest thinker Fri Apr 16, 2021 10:23 am

» Thoughts on SINS
by Swissinvest Fri Apr 16, 2021 10:04 am

» VFIN / VPEL / PABC - Share SPLIT or VTWO ?
by WealthKing Fri Apr 16, 2021 8:33 am

» DIPD/HAYC/HAYL
by Harry82 Fri Apr 16, 2021 5:46 am

» LANKA ALUMINIUM INDUSTRIES PLC (LALU.N0000)
by Jana Thu Apr 15, 2021 11:15 pm

» EXPOLANKA HOLDINGS PLC (EXPO.N0000)
by learningthemarket Thu Apr 15, 2021 8:18 pm

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™ » FINANCIAL CHRONICLE™ » HNB 31.12.2012

HNB 31.12.2012

Go down  Message [Page 1 of 1]

1HNB 31.12.2012 Empty HNB 31.12.2012 Thu Feb 28, 2013 4:48 pm

Gaja


Associate Director - Equity Analytics
Associate Director - Equity Analytics
http://cse.lk/cmt/upload_report_file/373_1362042418071.pdf

2HNB 31.12.2012 Empty Re: HNB 31.12.2012 Thu Feb 28, 2013 5:41 pm

salt

salt
Vice President - Equity Analytics
Vice President - Equity Analytics
HNB has done its best ever quarter ( much has come though tax management, I hope they have paid more taxes in first 9 months). with this, its the best quarterly results among the banks, better than COMB absolute terms.

Most undervalued among the top tier banking stocks
NAV 123.56, NV trades @ 119/- (PBV : 0.96X) & Voting @ 149/-(PBV :1.2X)

3HNB 31.12.2012 Empty HNB profits grow 32% to Rs. 8.25bn Fri Mar 01, 2013 1:07 am

sriranga

sriranga
Co-Admin
In the backdrop of a slowdown in economic growth resulting in reduced credit growth and volatile market conditions, the pre-tax profit of HNB Group improved by 25.5% to Rs 10.65 Bn while Group net profit after tax recorded a year on year growth of 32.4% to Rs 8.25 Bn, the bank announced yesterday (28).

Commenting on the performance during the year 2012, Dr. Ranee Jayamaha, Chairperson of HNB PLC stated that "In the first half of the year, amidst difficulties and challenges brought by the severe and complex international environment and despite volatile domestic markets, Hatton National Bank improved its operating strategies whilst retaining a healthy growth. In the second half, the Bank proactively adapted itself to policy changes as well as financial market conditions and moved forward to seize opportunities in the real economy".

The Bank’s interest income for the reporting period grew by 42.2%, prompted by increase in yields coupled with growth in interest earning assets. Interest cost mirrored this upward movement with a perceptible increase of 58.8%. Higher deposit rates, deposit growth as well as conversion of low cost deposits to fixed deposits at higher rates pushed the interest costs upwards. Nevertheless, the Bank witnessed a growth of 25.3% in net interest income amounting to Rs. 20.5 Bn during the financial year.

Increase in fee income remained a key strategic priority during the year, as per the Bank’s 3 year strategic plan. Efforts in this regard yielded positive results with the Bank increasing its commission income by 36.5% in 2012 against that of the previous financial year. Income from card operations and current accounts contributed towards the growth whilst fee income from trade remained static in the face of diminished foreign trade. This growth in commission income was the main contributor towards the increase in other income which recorded a growth of 23.7% during the year. Furthermore, the foreign exchange income of the Bank increased by an impressive 55.9% largely due to increase in foreign exchange transactions and the volatile exchange rate scenario witnessed during the year. The improvement in exchange gains were recorded, despite the Bank recording a marginal exchange loss culminating from accumulated losses in the Foreign Currency Banking Unit (FCBU).

Despite the salary revisions effected to staff in the non-executive cadre, the Bank was successful in managing its costs with an increase of only 9.4% over the previous year mainly due to the giant strides taken by the Bank towards productivity improvements. Commenting on same Mr. Rajendra Theagarajah Managing Director / CEO of HNB stated that "the target in 2012 was to contract the cost to income ratio by a further 5%. By identifying the top 5 cost contributors and tackling each diligently, I am pleased to announce that we managed to better our target as the ratio improved by an outstanding 720 bps to 50.5% from 57.7% in 2011."

With interest rates rising, the Bank witnessed a concurrent increase in its non-performing assets during the first half of 2012. The gross non-performing loans which stood at Rs 11.97 Bn at the beginning of the year increased to Rs 15.02 Bn by June 2012 increasing the gross NPA ratio from 3.93% to 4.58%. However, the rigorous recovery and risk management efforts have resulted in the non-performing assets to drop to Rs 12.99 Bn in December which has also resulted in the gross non performing ratio improving to 3.66%. Further the Bank took a policy decision to fully provide for all loans that are overdue for more than 900 days irrespective of the collateral value, despite the regulation allowing the Bank to deduct the collateral value to determine the provision requirement. Accordingly, the Bank’s net non-performing loan ratio improved to 1.83% from 2.33% last year.

The Bank’s pre-tax profits recorded a strong growth of 28.5% to Rs 9.98 Bn compared to 2011 while post-tax profit of the Bank recorded a growth of 37.2% to stand at Rs 7.64 Bn for the year ended 31st December 2012.

The Return on Assets (ROA) for the Bank in 2012 improved to 1.86% compared to 1.61% in the previous year, while Return on Equity improved to 18.8% from 17.3% in 2011, with improved margins, higher non-interest income to net income and reduction in cost to income ratios positively contributing towards same.

The Bank’s balance sheet growth slowed down to 17.2% in 2012 as a result of a slowdown in demand for credit, while gross loans and advances grew by 17.4%. The leasing portfolio witnessed a slowdown in 2012 due to an increase in import duty for vehicles while pawning continued to demonstrate the strong growth momentum witnessed in previous years. Other term loans and overdrafts too witnessed robust growth during the year.

Growth in assets was predominantly funded by deposits, which grew by a healthy 17%, while this was also supplemented by borrowings that originated mainly from foreign sources. During the year, the Bank borrowed USD 75 Mn from two reputed international lenders. The first was a USD 50 Mn long term senior debt from China Development Bank whilst the second was a USD 25 Mn subordinated loan from DEG.

Due to the rising interest rates the growth in deposits was predominantly from fixed deposits while the Bank witnessed a conversion of high cost savings to high yielding fixed deposits. However, the Bank managed to defend its low cost saving base maintaining it virtually flat during the year. On the whole, higher growth in fixed deposits resulted in the CASA ratio declining from 46.8% to 39.8% by December 2012.
http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=73656

http://sharemarket-srilanka.blogspot.co.uk/

Sponsored content


Back to top  Message [Page 1 of 1]

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