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51BANKING SECTOR - Page 3 Empty Most affected Banking share Wed Nov 25, 2015 10:12 am

troy


Moderator
Moderator

What is the most affected banking sector share?
In my opinion its NTB. Why I say so?

They have a staggering 25% of leasing out of loans to customers...

52BANKING SECTOR - Page 3 Empty Re: BANKING SECTOR Wed Nov 25, 2015 12:07 pm

capitallinkceylon


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

Hands down its NTB, what makes it worse is that they don't have fully owned finance subsidiary under them.

UBC-Ub Finance
SAMP-siyapatha
Commercial-Indra finance
Hnb-prime grameen

53BANKING SECTOR - Page 3 Empty Re: BANKING SECTOR Wed Nov 25, 2015 12:12 pm

troy


Moderator
Moderator

So Rs. 60 a good price to collect NTB by mid December or will the situation drag it further down?

54BANKING SECTOR - Page 3 Empty Re: BANKING SECTOR Wed Nov 25, 2015 12:42 pm

capitallinkceylon


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

I think from 80 it's good to collect, I don't think it will go down beyond 70.

55BANKING SECTOR - Page 3 Empty Re: BANKING SECTOR Wed Nov 25, 2015 2:22 pm

troy


Moderator
Moderator

Banking sector the worst hit by Budget 2016: Analysts

Sri Lanka’s banking and finance sector seems to be the worst hit from the 2016 fiscal budget with an estimated total impact of a whopping Rs. 7 billion as a result of the proposed increase in taxes, analysts at Bartleet Religare Securities (BRS) said today. Sri Lanka’s Budget 2016 presented to Parliament on Friday had proposed to increase corporate taxes from 28% to 30%, increase Value Added Tax (VAT) on financial services from 12.0% to 12.5% and raise Nation Building Tax by an additional 2%.
“Our estimations suggest an incremental impact of approximately LKR 7bn from the proposed change in taxes for the banking sector. Our calculation is based on published statistics for the Banking industry for nine months 2015 released by the Central Bank of Sri Lanka,” BRS said in a Budget Review released today.
According to the breakdown of impact for the banking Industry for Financial Year 2015, the 2% increase in corporate tax would cost the sector an estimated Rs. 3 billion, the 0.50% increase in VAT would cost Rs. 1 billion while the proposed 2% increase in Nation Building Tax would have an impact of Rs. 3 billion.
Analysts said that their estimations indicate a Return on Equity hit of 110 basis points (1.1%) for the industry for Financial Year 2015.
Meanwhile, the budget also proposed banks should cease engaging in leasing business from 01 June 2016.
“We believe this proposal would be a serious challenge not only to banks, but to the consumer as well. Leasing; motor leasing in particular is preferred way to drive loan book growth, due to (1) attractive yields (2) asset backed (3) active second hand market (4) good asset quality as domestic banks refrain providing facilities to the subprime market. We believe almost all banks would see a serious volume impact from this policy decision, as the sector’s median exposure to leasing stood at 8% by end September 2015. NTB, in particular would need a change in strategic direction, as the bank’s loan book concentration to leasing is as high as 24%,” analysts said commenting on the proposals.
They noted that finance companies would be the clear winners/beneficiaries of this proposal growing in both volumes and margins although from a consumer’s point of view, this will restrict access to low leasing advance rates, as banks generally quote low rates due to their access to low cost funds.
The budget has also directed to establish an Export Import Bank (EXIM Bank) to facilitate international trade business. Towards this exercise, the Government plans to inject an initial capital of Rs 25bn, subscribed jointly by the government and the industry expected to be operational from 01 April 2015 and listed in the Colombo Stock Exchange.
“We welcome this much needed proposal as means of focused attention to improve international trade in the Country. While SL is a late entrant to EXIM banking space, the neighboring India established an EXIM bank 23 years ago and is now the apex body in India for coordinating working of institutions engaged in financing exports and finance.
In our view, the proposed EXIM bank might cannibalize the loan growth of the LCB loan book growth into the trade sector in the short run. However in the long run, we expect them to enjoy a higher ROE by deploying funds to focused areas like MSME (Micro and Small and Medium Enterprises),” analysts said.
Meanwhile, the Budget has also proposed banks to expand their existing branch network by 15% by opening branches in under-banked areas in the country and stipulated that these branches will have to employ at least 6 employees per branch.
“We believe this proposal forces banks for sub optimal growth, as most of the banks have currently paced down expansion activities that started in 2009 post war period and currently are consolidating their position in the industry,” the review noted.
Among other proposals related to the banking sector include the restrictions on cash withdrawals (cash withdrawals above Rs. 1 million will be taxed at 2% withdrawals above Rs.10 million will be taxed at 3%), introduction of new exposure limits on bank lending, encouraging industry consolidation, welcoming overseas expansion, establishment of a Colombo International Financial Centre (CIFC), introduction of a minimum dividend payout for listed entities of 15% of the distributable profits, establishment of Financial Institution Restructuring Agency and the imposition of a cap on interest rates offered by finance companies.

56BANKING SECTOR - Page 3 Empty Re: BANKING SECTOR Wed Nov 25, 2015 6:59 pm

Joe007


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

I believe that
NTB should go below Rs 80
SEYB.N should go below Rs Rs 85
NDB should go below Rs 170 soon.

57BANKING SECTOR - Page 3 Empty Re: BANKING SECTOR Wed Nov 25, 2015 7:03 pm

Joe007


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

SAMP is the best in the banking sector at the moment also SDB & HNB are fairly priced but may have to go down little further.

58BANKING SECTOR - Page 3 Empty Re: BANKING SECTOR Wed Nov 25, 2015 7:09 pm

Sstar

Sstar
Vice President - Equity Analytics
Vice President - Equity Analytics

With these big caps going down, where will the market end? 6000?

59BANKING SECTOR - Page 3 Empty Re: BANKING SECTOR Wed Nov 25, 2015 7:11 pm

anges


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics

banks without a leasing arm will be hit very badly ! according to most loan books banking shares will have price drop of 30% - 40% ! with a little panic who knows

60BANKING SECTOR - Page 3 Empty Re: BANKING SECTOR Wed Nov 25, 2015 7:13 pm

Joe007


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

I think that the market is not going to recover until mid February 2016.

Also market correction should be coming soon and may affect index.

61BANKING SECTOR - Page 3 Empty Re: BANKING SECTOR Thu Nov 26, 2015 9:49 am

peacockman


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics

Joe007 wrote:SAMP is the best in the banking sector at the moment also SDB & HNB are fairly priced but may have to go down little further.

yeah... BANKS will be going down day by day....

62BANKING SECTOR - Page 3 Empty Re: BANKING SECTOR Thu Nov 26, 2015 8:02 pm

Joe007


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

Expected most banking shares would come down for correction prior to the budget announcement but post budget will cause furthermore correction.

63BANKING SECTOR - Page 3 Empty Re: BANKING SECTOR Fri Nov 27, 2015 9:16 am

capitallinkceylon


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

Bank shares will come down next few qtrs. Upto now every qtr most of the banks were able to improve there bottom line. Next qtr also i expect them to achieve another good qtr also but from there onward i expect there bottom line to shrink due to various taxation business operation restrictions. 

I have heavily invested in Sampath Bank last few yrs but i'm going to hold on to this for the long term. Going to invest more into it if reaches 220 level.

64BANKING SECTOR - Page 3 Empty Re: BANKING SECTOR Sat Nov 28, 2015 8:31 am

peacockman


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics

Rs. 212 million Foreign Outflows in COMB... y'day...

BANKING SECTOR - Page 3 Forw

65BANKING SECTOR - Page 3 Empty Re: BANKING SECTOR Sat Nov 28, 2015 8:38 am

peacockman


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics

COMB, NDB, ABL.... 52 weeks Low y'day....

66BANKING SECTOR - Page 3 Empty Banking and Finance Sector Wed Oct 17, 2018 10:26 am

ruwan326

ruwan326
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

Banking sector profits seen losing steam ahead of 3Q earnings season-2018-10-16

The banking sector earnings, which once looked almost immune to economic cycles, have indicated some signs of weakness in recent times, as the sector is facing multiple headwinds, which are putting its resilience to test. 


The most recent data seen by Mirror Business signalled a possible decline in sector profits, which for over a year were plagued by a number of problems from higher credit costs to slowdown in demand for fresh loans.


The government has also slapped higher taxes on the banking sector, which is looked at as a cash cow to be milked every time the government coffers run dry. 


The data for the first eight months showed that although the interest income of the banking sector had increased by Rs.87.8 billion from the same period in 2017, the after tax profits had increased by only Rs.300 million. 


The banking sector reported after tax profits of Rs.86.9 billion in total during the first eight months in 2018, on an interest income of Rs.716.4 billion. 


In a note released on the banking sector performance in September, Fitch Ratings predicted a mild pressure on the performance during the rest of 2018 and possibly in 2019, due to the challenging operating conditions. 


Fitch Ratings is maintaining a ‘Negative’ outlook on the sector as the operating conditions continue to be difficult against a challenging macroeconomic backdrop, which is expected to pressure the banks’ performance in the short to medium term. Sri Lanka’s banking sector asset quality fell to a new low in August this year, as the reported gross non-performing loan (NPL) ratio rose to 3.6 percent, from 3.4 percent in July and 2.5 percent in 2017. 


However, the Central Bank believes the potential NPL ratio to be over 5.0 percent, as most banks are believed to have rescheduled the troubled loans to show a better picture. 


The rescheduled loans have increased by a staggering Rs.155 billion by end-August 2018, from Rs.93 billion a year ago, an increase of 66 percent. 


Higher credit costs or provisions for possible bad loans are also on the rise, denting the profits further. New taxes and higher tax rates have increased the banking sector effective tax rate to over 50 percent in most cases, making the industry the heaviest taxed in any country. 
As a result, the return on equity, the commonly watched investor ratio, which gauges the sector attractiveness, has declined by 310 basis points during the eight months, to 14.5 percent. 


This is also partly due to the new capital raised by the banks since 2017 to remain compliant with the full implementation of the BASEL III capital ratios coming into effect from January 1, 2019. 


Sri Lankan banks have raised Tier I capital of Rs.66 billion and Tier II capital of Rs.45 billion since 2017, ahead of the full implementation of BASEL III in 2019, Fitch Rating said. “This includes Rs.10 billion of equity by the large state-licensed commercial banks. Further capital raising is likely in 2018, although much of the shortfall was bridged in 2017,” the rating agency noted. 

Despite the weakness in earnings, the Sri Lankan banks remain relatively strong and well capitalized to withstand shocks after 
capital raisings. 


Banks will start filing their third quarter earnings from next week onwards. Analysts expect higher provisions and slowdown in new loans to decelerate earnings growth. 

http://www.dailymirror.lk/article/Ba...n--156910.html

67BANKING SECTOR - Page 3 Empty Re: BANKING SECTOR Wed Oct 17, 2018 10:34 am

samaritan


Moderator
Moderator

There is nothing surprising. All sectors are bound to lose steam!

68BANKING SECTOR - Page 3 Empty Re: BANKING SECTOR Wed Oct 17, 2018 5:21 pm

Yahapalanaya

Yahapalanaya
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

ruwan326 wrote:Banking sector profits seen losing steam ahead of 3Q earnings season-2018-10-16

The banking sector earnings, which once looked almost immune to economic cycles, have indicated some signs of weakness in recent times, as the sector is facing multiple headwinds, which are putting its resilience to test. 


The most recent data seen by Mirror Business signalled a possible decline in sector profits, which for over a year were plagued by a number of problems from higher credit costs to slowdown in demand for fresh loans.


The government has also slapped higher taxes on the banking sector, which is looked at as a cash cow to be milked every time the government coffers run dry. 


The data for the first eight months showed that although the interest income of the banking sector had increased by Rs.87.8 billion from the same period in 2017, the after tax profits had increased by only Rs.300 million. 


The banking sector reported after tax profits of Rs.86.9 billion in total during the first eight months in 2018, on an interest income of Rs.716.4 billion. 


In a note released on the banking sector performance in September, Fitch Ratings predicted a mild pressure on the performance during the rest of 2018 and possibly in 2019, due to the challenging operating conditions. 


Fitch Ratings is maintaining a ‘Negative’ outlook on the sector as the operating conditions continue to be difficult against a challenging macroeconomic backdrop, which is expected to pressure the banks’ performance in the short to medium term. Sri Lanka’s banking sector asset quality fell to a new low in August this year, as the reported gross non-performing loan (NPL) ratio rose to 3.6 percent, from 3.4 percent in July and 2.5 percent in 2017. 


However, the Central Bank believes the potential NPL ratio to be over 5.0 percent, as most banks are believed to have rescheduled the troubled loans to show a better picture. 


The rescheduled loans have increased by a staggering Rs.155 billion by end-August 2018, from Rs.93 billion a year ago, an increase of 66 percent. 


Higher credit costs or provisions for possible bad loans are also on the rise, denting the profits further. New taxes and higher tax rates have increased the banking sector effective tax rate to over 50 percent in most cases, making the industry the heaviest taxed in any country. 
As a result, the return on equity, the commonly watched investor ratio, which gauges the sector attractiveness, has declined by 310 basis points during the eight months, to 14.5 percent. 


This is also partly due to the new capital raised by the banks since 2017 to remain compliant with the full implementation of the BASEL III capital ratios coming into effect from January 1, 2019. 


Sri Lankan banks have raised Tier I capital of Rs.66 billion and Tier II capital of Rs.45 billion since 2017, ahead of the full implementation of BASEL III in 2019, Fitch Rating said. “This includes Rs.10 billion of equity by the large state-licensed commercial banks. Further capital raising is likely in 2018, although much of the shortfall was bridged in 2017,” the rating agency noted. 

Despite the weakness in earnings, the Sri Lankan banks remain relatively strong and well capitalized to withstand shocks after 
capital raisings. 


Banks will start filing their third quarter earnings from next week onwards. Analysts expect higher provisions and slowdown in new loans to decelerate earnings growth. 

http://www.dailymirror.lk/article/Ba...n--156910.html
Let's see CDB,SAMP results in coming weeks.

69BANKING SECTOR - Page 3 Empty Re: BANKING SECTOR Thu Oct 18, 2018 8:18 am

soileconomy

soileconomy
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

Yahapalanaya wrote:
ruwan326 wrote:Banking sector profits seen losing steam ahead of 3Q earnings season-2018-10-16

The banking sector earnings, which once looked almost immune to economic cycles, have indicated some signs of weakness in recent times, as the sector is facing multiple headwinds, which are putting its resilience to test. 


The most recent data seen by Mirror Business signalled a possible decline in sector profits, which for over a year were plagued by a number of problems from higher credit costs to slowdown in demand for fresh loans.


The government has also slapped higher taxes on the banking sector, which is looked at as a cash cow to be milked every time the government coffers run dry. 


The data for the first eight months showed that although the interest income of the banking sector had increased by Rs.87.8 billion from the same period in 2017, the after tax profits had increased by only Rs.300 million. 


The banking sector reported after tax profits of Rs.86.9 billion in total during the first eight months in 2018, on an interest income of Rs.716.4 billion. 


In a note released on the banking sector performance in September, Fitch Ratings predicted a mild pressure on the performance during the rest of 2018 and possibly in 2019, due to the challenging operating conditions. 


Fitch Ratings is maintaining a ‘Negative’ outlook on the sector as the operating conditions continue to be difficult against a challenging macroeconomic backdrop, which is expected to pressure the banks’ performance in the short to medium term. Sri Lanka’s banking sector asset quality fell to a new low in August this year, as the reported gross non-performing loan (NPL) ratio rose to 3.6 percent, from 3.4 percent in July and 2.5 percent in 2017. 


However, the Central Bank believes the potential NPL ratio to be over 5.0 percent, as most banks are believed to have rescheduled the troubled loans to show a better picture. 


The rescheduled loans have increased by a staggering Rs.155 billion by end-August 2018, from Rs.93 billion a year ago, an increase of 66 percent. 


Higher credit costs or provisions for possible bad loans are also on the rise, denting the profits further. New taxes and higher tax rates have increased the banking sector effective tax rate to over 50 percent in most cases, making the industry the heaviest taxed in any country. 
As a result, the return on equity, the commonly watched investor ratio, which gauges the sector attractiveness, has declined by 310 basis points during the eight months, to 14.5 percent. 


This is also partly due to the new capital raised by the banks since 2017 to remain compliant with the full implementation of the BASEL III capital ratios coming into effect from January 1, 2019. 


Sri Lankan banks have raised Tier I capital of Rs.66 billion and Tier II capital of Rs.45 billion since 2017, ahead of the full implementation of BASEL III in 2019, Fitch Rating said. “This includes Rs.10 billion of equity by the large state-licensed commercial banks. Further capital raising is likely in 2018, although much of the shortfall was bridged in 2017,” the rating agency noted. 

Despite the weakness in earnings, the Sri Lankan banks remain relatively strong and well capitalized to withstand shocks after 
capital raisings. 


Banks will start filing their third quarter earnings from next week onwards. Analysts expect higher provisions and slowdown in new loans to decelerate earnings growth. 

http://www.dailymirror.lk/article/Ba...n--156910.html
Let's see CDB,SAMP results in coming weeks.
Banking sector represent two banks....???

70BANKING SECTOR - Page 3 Empty Re: BANKING SECTOR Thu Oct 18, 2018 9:50 am

Yahapalanaya

Yahapalanaya
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

soileconomy wrote:
Yahapalanaya wrote:
ruwan326 wrote:Banking sector profits seen losing steam ahead of 3Q earnings season-2018-10-16

The banking sector earnings, which once looked almost immune to economic cycles, have indicated some signs of weakness in recent times, as the sector is facing multiple headwinds, which are putting its resilience to test. 


The most recent data seen by Mirror Business signalled a possible decline in sector profits, which for over a year were plagued by a number of problems from higher credit costs to slowdown in demand for fresh loans.


The government has also slapped higher taxes on the banking sector, which is looked at as a cash cow to be milked every time the government coffers run dry. 


The data for the first eight months showed that although the interest income of the banking sector had increased by Rs.87.8 billion from the same period in 2017, the after tax profits had increased by only Rs.300 million. 


The banking sector reported after tax profits of Rs.86.9 billion in total during the first eight months in 2018, on an interest income of Rs.716.4 billion. 


In a note released on the banking sector performance in September, Fitch Ratings predicted a mild pressure on the performance during the rest of 2018 and possibly in 2019, due to the challenging operating conditions. 


Fitch Ratings is maintaining a ‘Negative’ outlook on the sector as the operating conditions continue to be difficult against a challenging macroeconomic backdrop, which is expected to pressure the banks’ performance in the short to medium term. Sri Lanka’s banking sector asset quality fell to a new low in August this year, as the reported gross non-performing loan (NPL) ratio rose to 3.6 percent, from 3.4 percent in July and 2.5 percent in 2017. 


However, the Central Bank believes the potential NPL ratio to be over 5.0 percent, as most banks are believed to have rescheduled the troubled loans to show a better picture. 


The rescheduled loans have increased by a staggering Rs.155 billion by end-August 2018, from Rs.93 billion a year ago, an increase of 66 percent. 


Higher credit costs or provisions for possible bad loans are also on the rise, denting the profits further. New taxes and higher tax rates have increased the banking sector effective tax rate to over 50 percent in most cases, making the industry the heaviest taxed in any country. 
As a result, the return on equity, the commonly watched investor ratio, which gauges the sector attractiveness, has declined by 310 basis points during the eight months, to 14.5 percent. 


This is also partly due to the new capital raised by the banks since 2017 to remain compliant with the full implementation of the BASEL III capital ratios coming into effect from January 1, 2019. 


Sri Lankan banks have raised Tier I capital of Rs.66 billion and Tier II capital of Rs.45 billion since 2017, ahead of the full implementation of BASEL III in 2019, Fitch Rating said. “This includes Rs.10 billion of equity by the large state-licensed commercial banks. Further capital raising is likely in 2018, although much of the shortfall was bridged in 2017,” the rating agency noted. 

Despite the weakness in earnings, the Sri Lankan banks remain relatively strong and well capitalized to withstand shocks after 
capital raisings. 


Banks will start filing their third quarter earnings from next week onwards. Analysts expect higher provisions and slowdown in new loans to decelerate earnings growth. 

http://www.dailymirror.lk/article/Ba...n--156910.html
Let's see CDB,SAMP results in coming weeks.
Banking sector represent two banks....???
You should have some brain to be in stock market.Every sector has good stocks and bad stocks. lol! lol! lol!

71BANKING SECTOR - Page 3 Empty Re: BANKING SECTOR Mon Oct 22, 2018 7:15 pm

TuTanKaman


Manager - Equity Analytics
Manager - Equity Analytics

Fundamentally banking sector is weak. Economy slowdown is affecting very badly on NPAs. Most banks these days hide their NPAs under carpet. They have huge pressure to raise capital by 2020. Effective tax rate with medamulana tax is about 50%. Slfrs 9 on provisioning will see 40% increase in provisions this year. Be careful b4 invest

72BANKING SECTOR - Page 3 Empty Re: BANKING SECTOR Thu Nov 28, 2019 3:00 pm

ThilinaM

ThilinaM
Vice President - Equity Analytics
Vice President - Equity Analytics

NDB is not bad but seylan is quick money . its crashed to bottom. after Right issue over it will give u instant 50% return

73BANKING SECTOR - Page 3 Empty Re: BANKING SECTOR Thu Nov 28, 2019 3:13 pm

Mr-Star


Stock Analytic
Stock Analytic

SEMB.N   why same level within around 1 1/2 Years....

74BANKING SECTOR - Page 3 Empty Re: BANKING SECTOR Sun Dec 15, 2019 8:16 pm

PDH


Senior Equity Analytic
Senior Equity Analytic

ABL.............. Laughing

75BANKING SECTOR - Page 3 Empty Sell your all Bank, finance related shares. Sat Dec 21, 2019 12:41 am

Teller

Teller
Moderator
Moderator

If it happens, God bless all of us. I will update soon the scenario.

76BANKING SECTOR - Page 3 Empty Re: BANKING SECTOR Sat Dec 21, 2019 12:49 am

KavinduTM

KavinduTM
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

Sir. Whats gonna happen  Shocked

77BANKING SECTOR - Page 3 Empty Re: BANKING SECTOR Sat Dec 21, 2019 12:50 am

Teller

Teller
Moderator
Moderator

http://puvath.lk/news.php?newsid=66529&ref=share&os=android

78BANKING SECTOR - Page 3 Empty Re: BANKING SECTOR Sat Dec 21, 2019 12:53 am

Teller

Teller
Moderator
Moderator

Its a joke, government will not settle any thing for banks,finance companies. This will hit their cash flow in same way capital for fresh lending. Depositors be careful as your interest income will not receive on time.

79BANKING SECTOR - Page 3 Empty Re: BANKING SECTOR Sat Dec 21, 2019 12:54 am

kasun_gimhana

kasun_gimhana
Manager - Equity Analytics
Manager - Equity Analytics

Right issues are coming baby ???? Or central bank going to prohibit cross-holding  LOl. I saw the news in the paper 2 months before.

80BANKING SECTOR - Page 3 Empty Re: BANKING SECTOR Sat Dec 21, 2019 12:55 am

Teller

Teller
Moderator
Moderator

Who is baby...😂😂😂😂hahaaha

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