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PAN ASIA BANKING CORPORATION PLC (PABC.N0000) - Page 6 Vote_lcap68%PAN ASIA BANKING CORPORATION PLC (PABC.N0000) - Page 6 Vote_rcap 68% [ 178 ]
PAN ASIA BANKING CORPORATION PLC (PABC.N0000) - Page 6 Vote_lcap18%PAN ASIA BANKING CORPORATION PLC (PABC.N0000) - Page 6 Vote_rcap 18% [ 47 ]
PAN ASIA BANKING CORPORATION PLC (PABC.N0000) - Page 6 Vote_lcap13%PAN ASIA BANKING CORPORATION PLC (PABC.N0000) - Page 6 Vote_rcap 13% [ 35 ]

Total Votes : 260

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FINANCIAL CHRONICLE™ » CORPORATE CHRONICLE™ » PAN ASIA BANKING CORPORATION PLC (PABC.N0000)

PAN ASIA BANKING CORPORATION PLC (PABC.N0000)

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EPS
Walbaba
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Jana


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
Any changes will come on the PABC price after this news??

Dhammika Perera’s PABC puts Japan-based fund in limbo; Risks estranging Japan-SL ties
By Staff Writer - February 10, 2021 11:03 am 1535 0

Japan based Fund, 4th largest depositor Bank in limbo due to Chief Executive and Board decision on waiving off Rs. 1.37 Billion security that is yet to mature in 7 years

Hot on the heels of Sri Lanka’s government trying hard to raise Foreign Direct Investments from abroad, revelations have come to light that Sri Lanka’s single largest monopolistic Casino Mogul billionaire Kulappurarachchige Don Dhammika Perera controlled licensed commercial bank – Pan Asia Bank PLC is in a move to waive off a security deposit of Asia’s most developed nation Japan based investor, amounting to Rs. 1.37 billion, which has 7 more years to mature.

In a letter dated 8th February 2021, sent to PABC’s Chairman G.A.R. Dimuth Prasanna which has also been copied to Prime Minister Mahinda Rajapaksa (Ministry of Finance) and Sri Lanka’s financial regulator – the Central Bank of Sri Lanka, Japan-based fund and Investor – Wan Hang Funds Development Ltd (WHFD) notes that being the fourth largest depositor in PABC, approximately 1.08 billion Japanese Yen (JPY) was brought in as Foreign Direct Investment to Sri Lanka’s banking system through PABC from March to December 2017.



This had occurred during a time when the bank was facing capital constraints according to WHFD.

Then almost all brought in JPY by WHFD to the tune of 1 billion were converted to Sri Lanka Rupees (LKR) at prevailing exchange rates during the time.

Thereafter (WHFD) had created a time deposit denominated in LKR amounting to Rs. 1.37 billion, maturing in September 2028, at an annual interest rate of 9.75%, paid on monthly interest.

WHFD then had used this LKR-denominated time deposit as collateral and borrowed Japanese Yen worth 80% of it amounting to JPY 822.1 million.

However, by January 2021 the value of LKR has declined against JPY, so the collateral strength of LKR-denominated time deposits as collateral has declined, in which loan balance has exceeded the collateral value by 12%.

However, WHFD claims that it has received a notice from PABC’s local management if the WHFD does not provide additional collateral that by 10th February 2021, the said facility would be terminated.

Further the letter notes that PABC on the contrary have frozen WHFD’s monthly interest payment account.

On the other hand, according to the letter, WHFD had maintained a track record of making interest payments without delay for the loan facility in accordance with the loan agreement making the said JPY loan a Performing Loan in PABC’s lending portfolio.

The letter further goes into explain that WHFD would ensure that as per their agreed plan, steps are underway to deposit Rs. 2 Billion worth of JPY in the bank every year, providing further capital strength to PABC Bank.

“We would like to confirm that amidst a global pandemic that restrict global trade and travel, although we have proper plan in place to provide additional collateral, we require some considerable time to bring in the relevant tranches” WHFD management stresses out in the letter to PABC.

“We would like to further state that amidst these difficult times due to Pandemic, that restrict global investors to transfer funds in cross boarder payments, at large over Rs. 40 billion realized Foreign Direct Investments with Japanese investor confidence in Sri Lanka will be affected if this WHFD’s confidence placed in PABC is affected due to any unwise decision taken by the bank’s local management, that might further affect to Financial System Stability of Sri Lanka” WHFD points out in the letter.

The letter further highlights that Japan to date is the most developed nation in Asia and has been a strong supporter of Sri Lanka.

“In fact, Japan has been the largest financial donor to Sri Lanka and a big investor apart from being an important source market for Sri Lanka Tourism over the years” the letter points out adding that in such background WHFD would like to ask for the cooperation and guidance of the bank and relevant authorities in Sri Lanka to provide them with an amicable solution considering their investment portfolio and confidence placed in the bank and the banking and financial system in Sri Lanka, apart from WHFD being the largest conglomerate with a reputation in Japan.



A 29.99% stake of PABC is personally owned by Billionaire Dhammika Perera whilst his brother K.D.H. Perera also owns 5.27%.

The second largest shareholder of the PABC bank is Japan based Bansei Securities with a 15% stake.

As per the latest statistics released by 30th September 2020, PABC has 3.6 billion State Capital represented by little over 442.5 million voting shares.

In Sri Lanka’s financial landscape Dhammika Perera controls 2 licensed commercial banks namely Sampath Bank and PABC Bank, along with 4 finance companies named LB Finance, Vallibel Finance, Siyapatha Finance, Singer Finance through his direct and indirect shareholding companies and Sri Lanka’s oldest two conglomerates Singer PLC and Hayleys PLC.

The above banking and finance companies collectively have over Rs. 1,162.7 billion or Rs. 1.1 trillion worth of public depositors’ funds or nearly 6.6% value of Sri Lanka’s Gross Domestic Product (GDP), in which Sampath Banks has Rs. 845 billion, PABC Bank has Rs. 173.6 billion, LB Finance has Rs. 88.3 billion, Vallibel Finance has Rs. 30 billion, Siyapatha Finance has Rs. 16.9 billion and Singer Finance has Rs. 9.5 billion worth of public deposits respectively.

Dhammika Perera and his consortium of companies and relatives control Sri Lanka’s third largest licensed commercial bank – Sampath Bank PLC with a 14.95% stake being the largest shareholder via his Vallibel One PLC, and LB Finance PLC with over 77% stake, Vallibel Finance with over 77% stake, Siyaptha Finance being 100% owned by Sampath Bank and Singer Finance being 79.93% being owned by Singer Sri Lanka PLC which is owned by Perera controlled Hayleys group.

Recently in January 2021, Dhammika Perera also announced a massive share split of 17 companies he owns that is listed in Colombo Stock Exchange after over 10-15 years of acquisitions he made with his investments.

https://newshub.lk/en/2021/02/10/dhammika-pereras-pabc-puts-japan-based-fund-in-limbo-risks-estranging-japan-sl-ties/

Walbaba


Stock Analytic
Stock Analytic
Pan asia problem wage neda? Out wennada?

PAN ASIA BANKING CORPORATION PLC (PABC.N0000) - Page 6 482f4010
PAN ASIA BANKING CORPORATION PLC (PABC.N0000) - Page 6 E6e61310
PAN ASIA BANKING CORPORATION PLC (PABC.N0000) - Page 6 Ce82aa10

wealth123


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
Ha ha..All Banks have such small issues.
Collectors take these opportunities, See PABC Price will pass 23.00 Soon with a Super 1st Qtr result.
Can expect 1.50+ EPS for the Qtr & 6.00+ for the Year 2021.

Hitazz likes this post

High-flyer


Manager - Equity Analytics
Manager - Equity Analytics
https://cdn.cse.lk/cmt/upload_report_file/388_1620032618237.PDF

- Pan Asia Bank Records Best-Ever Q1 results in Challenging Times - Profit
After Tax soars by 81% to post Rs. 750 Mn.

Hitazz likes this post

Jana


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
@High-flyer wrote:https://cdn.cse.lk/cmt/upload_report_file/388_1620032618237.PDF

- Pan Asia Bank Records Best-Ever Q1 results in Challenging Times - Profit
After Tax soars by 81% to post Rs. 750 Mn.

PABC NAV is 36.58 . PABC need to go beyond 20/= soon and easy to go 30/=

PABC is DD perera Stock So it will



cseguide and RJ1010 like this post

wealth123


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
@wealth123 wrote:Ha ha..All Banks have such small issues.
Collectors take these opportunities, See PABC Price will pass 23.00 Soon with a Super 1st Qtr result.
Can expect 1.50+ EPS for the Qtr & 6.00+ for the Year 2021.
More than expected, 6.00+ EPS is possible.
Mkt price will adjust.

EPS

EPS
Expert
Expert
PABC looks promising  Basketball  study the trading pattern today.
Anytime BANKS can start moving and I believe PABC will be the reasonable highest return giving Banking Counter.

RJ1010 likes this post

cseguide

cseguide
Vice President - Equity Analytics
Vice President - Equity Analytics
@Jana wrote:
@High-flyer wrote:https://cdn.cse.lk/cmt/upload_report_file/388_1620032618237.PDF

- Pan Asia Bank Records Best-Ever Q1 results in Challenging Times - Profit
After Tax soars by 81% to post Rs. 750 Mn.

PABC NAV is 36.58 . PABC need to go beyond 20/= soon and easy to go 30/=

PABC is DD perera Stock So it will



yes, It is one of my picks in banking sector, hope good times are ahead. Today so some price appreciation with big volume. smells a run Laughing

soileconomy

soileconomy
Vice President - Equity Analytics
Vice President - Equity Analytics
Agreed.it should supercede the others in the same sector

EPS

EPS
Expert
Expert
As predicted, Its amazing BANKS run today.
PABC 6.5 Mn shares traded + 133 Mn Turnover.
PABC can easily go above 20 plus tomorrow. If, this is a strong Banking rally. it can be further more upside.

Looks positive for all Banks today...
SAMP - 4.4 Mn Shares - 249 Mn TO (Yesterday witness Foreign Buy)
ABL - 42 Mn - 165 Mn TO
COMB - 1.6 Mn - 142 Mn TO
HNB - 0.6 Mn - 93 Mn TO
NDB - 0.7 Mn - 61 Mn TO
NTB - 0.4 Mn - 22 Mn TO
DFCC - 0.14 Mn - 9 Mn TO 
UBC - 3.4 Mn - 42 Mn TO

RJ1010 likes this post

SAGA


Moderator
Moderator
According to my brockers , their TP for PABC is 24 +

RJ1010 likes this post

RJ1010


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
I’m also expecting PABC to reach 23-24 and consolidate there

cseguide likes this post

EPS

EPS
Expert
Expert
https://cdn.cse.lk/cmt/upload_report_file/388_1627895061153.06.2021.pdf


https://cdn.cse.lk/pdf/company-articles/PABC-N0000-PanAsiaBankrecordsimpressiveperformanceamidstchallenges.pdf


Pan Asia Bank records impressive performance amidst challenges - Tuesday, 3 August 2021
1H Profit After Tax soars by 50% to post Rs. 1.35 b Pan Asia Banking Corporation PLC yesterday reported an impressive performance for the sixmonth period which ended 30 June to report a Pre-Tax Profit of Rs. 1,822 million and a Post-Tax Profit of Rs. 1,356 million with growth rates of 27% and 50% respectively, while demonstrating the resilience amidst challenging macro-economic conditions. The bank’s performance was characterised by strength and resilience despite the heightened uncertainty due to the impact of the COVID-19 pandemic. In a statement, the bank said against the backdrop of the COVID-19 impact on the Sri Lankan economy, the bank’s Operating Profits before VAT on Financial Services reached Rs. 2,245 Source: Daily FT million with an increase of 25%, reflecting the excellence in core banking performance and the success of cost containment measures evidenced by improvement in all key matrices, which now rank among the industry bests. This feat was achieved even after setting aside a sizable provision buffers for the probable deterioration in credit quality due to COVID-19 pandemic. The bank increased impairment provision buffers in 1H prudently taking into consideration of increased risks and uncertainties due to COVID 19 pandemic through experience adjustments, management overlays and downgrading of credit exposures of the borrowers in elevated risk industries. As a result, total impairment expense for 1H and 2Q increased by 29% and 58% respectively. Further, the bank opted not to use the relief allowed by the industry prudential regulator in making impairment provisions for investments in foreign currency-denominated Government securities while being prudent. The bank’s Net Interest Income for the period witnessed an increase of 17% due to significant reduction in financial cost of funds at a rate faster than the drop-in interest yields of interest earning assets. Consequently, the bank’s Net Interest Margin for the period improved to 4.84% from 4.41% reported six months ago. In the meantime, the bank’s Net Fee and Commission Income recorded a growth of 45% with the rebound in demand for credit due to revival of economic activity in 1H amidst the low interest rate regime despite the adverse impact of lockdowns had during 2Q and waiver of fees and charges mandated by the industry regulator. Meanwhile, the volatility in foreign exchange rates enabled the bank to increase its Foreign Exchange Income substantially as reflected in Other Operating Income. On the other hand, the aforementioned currency volatility had a negative impact on the bank’s net trading income due to mark-to-market losses on forward exchange contracts and currency swaps. The bank is committed to revenue maximisation and cost management despite sector vulnerabilities that prevailed since last year. The bank’s Cost-to-Income Ratio improved from 45.66% to 42.95% within the six months period owing to the excellence in core banking performance which is reflected in the noteworthy overall growth in key revenue lines and various strategies and measures taken to contain overhead costs. The cost management culture embedded across the bank assisted curtailing Operating Expenses by 7% in 2021 1H compared to 2020 1H. Meanwhile, increased allocations for performance bonuses, spending on development of human capital and staff welfare led to an increase in personnel costs during the reporting period compared to previous period. The Bank’s Post-Tax Profits for 1H also gained to an extent due to application of lower Corporate Income Tax Rate of 24% for tax provisioning in accordance with the guideline issued by CA – Sri Lanka on 23 April. The bank continues to report solid Key Profitability Indicators which rank among the highest in the industry. The bank’s Pre-Tax Return on Assets also improved to 2.02% from 1.70%. Further, the bank reported a stunning Return on Equity (ROE) of 16.95% during the period under review which stands among the industry best. The bank’s Earnings per Share (EPS) for the six months period rose to Rs. 3.06 in 2021 1H from Rs. 2.05 in 2020 1H driven by the excellent overall performance. Meanwhile, the Bank’s Net Source: Daily FT Asset Value per Share increased by 9% during the six-month period to reach Rs. 37.97 as of 30 June 2021. The bank’s Total Asset Base stood at Rs.187.41 billion as of 30 June 2021 after reporting a growth of 6% during the period, supported by the expansion in the credit book and investments other financial instruments. The Bank’s Gross Loans and Advances Book recorded a growth of 6% to reach Rs. 138 billion. Meanwhile, Customer Deposits recorded a growth of over 4% to reach Rs. 147 billion as of 30 June 2021. The bank also attracted more low-cost current and savings deposits, as out of the Rs. 5.8 billion total deposits it raised during the first six months, over 73% were low cost. The Bank’s CASA Ratio improved to 27% from 25% within a time span of six months, which is one of the reasons for the reduction in financial cost of funds during the period under review. The Bank’s Regulatory Gross Non-Performing Loan Ratio improved from 6.73% to 6.61% during 1H amidst tough macroeconomic conditions whilst the bank’s Net Non-Performing Loan Ratio improved from 2.34% to 1.94% during 1H 2021 due to prudent provisioning. Commenting on the financial performance, the bank’s Managing MD/CEO Nimal Tillekeratne said: “We are extremely proud and pleased to deliver such an excellent performance under the extreme conditions created by the pandemic. This performance has been hard-won on account of a proactive approach to business while leveraging on emerging opportunities in the market in a prudent manner. “Despite the moratoriums and provisioning that had to be provided for, the bank has successfully recorded profitability while consolidating customer and investor confidence, surpassing budgets for the first half of 2021 financial year.” The bank maintains all its Capital and Liquidity Ratios well above the regulatory minimum standards. The bank’s Tier 1 Capital Ratio and Total Capital Ratio as of 30 June 2021 stood at 12.59% and 15.01% respectively. The bank’s Statutory Liquid Asset Ratios (SLAR) as of 30 June stood at 31% and 50.37% for Domestic Banking Unit and Off-Shore Banking Unit respectively. Meanwhile, the Bank’s Liquidity Coverage Ratio (LCR) under BASEL III stood well above the statutory minimums. The bank maintained LCR Ratios of 268.04% and 229.81% for all currencies and LKR respectively. Adding further, Pan Asia Chairman Jayantha S.B. Rangamuwa said: “For a banking institution to record profitability amidst a global pandemic and unfavourable macroeconomic conditions, points to the outstanding systems and governance with the institution. “By demonstrating this industry-leading performance, Pan Asia Bank has shown that it is the truly Sri Lankan Bank that is focused on building stakeholder wealth while supporting people impacted by COVID-19 – helping to support and uplift their livelihoods. The numerous reputed awards and accolades won during the year are further testimony to Pan Asia Bank’s potential and its path to even higher profitability by the end of 2021 financial year.” Source: Daily FT In addition to its impressive financial performance, Pan Asia Bank has been recognized in the recent past by many local and global reputed institutions for excellence in the Banking sphere. Pan Asia Bank was crowned as the ‘Fastest Growing Commercial Bank in Sri Lanka – 2021’ by the International Business Magazine Awards. Moreover, the bank was also recently bestowed with the prestigious ‘Best Bank for Treasury Activities Sri Lanka - 2021’ award by the Global Banking and Finance Review; ‘The Best Treasury and Cash Management Bank Sri Lanka 2021’ by the International Business Magazine Awards; and ‘The Best Bank in Treasury Management Sri Lanka 2021’ by World Business Outlook Awards 2021, which demonstrates the bank’s prudent and best-in-Class Treasury and Cash Management Operation. Acknowledged as one of the fastest-growing banks in Sri Lanka, Pan Asia Bank has earned a solid reputation as an agile and robust banking institution that is based on a strong framework of good governance, sustainability and ethical operations.

RJ1010 likes this post

viduranga


Senior Equity Analytic
Senior Equity Analytic
tomorrow 21+++

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