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.
FINANCIAL CHRONICLE™

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

Click Link to get instant AI answers to all business queries.
Click Link to find latest Economic Outlook of Sri Lanka
Click Link to view latest Research and Analysis of the key Sectors and Industries of Sri Lanka
Worried about Paying Taxes? Click Link to find answers to all your Tax related matters
Do you have a legal issues? Find instant answers to all Sri Lanka Legal queries. Click Link
Latest images

Latest topics

» Latest Financial Status and Future Outlook of SMB Finance PLC
by ChatGPT Yesterday at 11:15 pm

» Latest Financial Status and Future Outlook of Overseas Realty PLC
by ChatGPT Yesterday at 11:00 pm

» Latest Financial Status and Future Outlook of Merchant Bank of Sri Lanka & Finance PLC
by ChatGPT Yesterday at 10:55 pm

» McDonald’s අපේ නෙමෙයි අපේ බෝස්ගේ – අබාන්ස් කියයි
by ChooBoy Yesterday at 10:19 am

» AI Assistance for Stock Market Research and Analysis
by ChatGPT Yesterday at 7:12 am

» Comparative Analysis of the Insurance Sector
by God Father Tue Mar 26, 2024 11:46 pm

» Sri Lanka: Why Pay Exorbitant Taxes?
by ChatGPT Tue Mar 26, 2024 10:52 pm

» LANKA CREDIT AND BUSINESS FINANCE PLC (LCBF.N0000)
by K.R Tue Mar 26, 2024 3:15 pm

» CENTRAL INDUSTRIES PLC (CIND.N0000)
by D.G.Dayaratne Tue Mar 26, 2024 9:11 am

» SIYAPATHA FINANACE PLC (SLFL.N0000)
by ChatGPT Tue Mar 26, 2024 7:58 am

» FINANCE AND LEASING SECTOR
by ChatGPT Mon Mar 25, 2024 6:45 am

» LOLC FINANCE PLC (LOFC.N0000)
by ChatGPT Mon Mar 25, 2024 6:36 am

» CIC HOLDINGS PLC (CIC.N0000)
by ChatGPT Mon Mar 25, 2024 6:18 am

» UNION ASSURANCE PLC (UAL.N0000)
by ChatGPT Mon Mar 25, 2024 6:15 am

» First Capital Holdings PLC: Current Financial performance and future outlook
by God Father Sun Mar 24, 2024 10:58 pm

» LankaBizz: Sri Lanka's First ever Artificially Intelligent (AI) Business and Research Assistant
by God Father Sun Mar 24, 2024 7:27 am

» HOTEL AND TRAVEL SECTOR
by ErangaDS Wed Mar 20, 2024 7:22 am

» CIC Holdings Good Times Ahead
by ashan silva Mon Mar 18, 2024 11:00 am

» EPF Fund keep eye on low P/E Shares
by K.R Mon Mar 18, 2024 8:45 am

» SINS - the Tailwind effects of a crisis hit Economy
by Hawk Eye Mon Mar 18, 2024 8:37 am

» Ceylon cold stores
by Hawk Eye Mon Mar 18, 2024 8:25 am

» Asha securities Provide buy signal for CIC
by ddrperera Fri Mar 15, 2024 1:10 am

» CSE ready for another Downtrend?
by D.G.Dayaratne Thu Mar 14, 2024 11:24 am

» LankaLAW Forum : Sri Lanka’s #1 Discussion Platform for Legal Questions and Answers
by blindhog Thu Mar 14, 2024 9:14 am

» Sri Lanka poised to benefit from demand surge for ‘non-China origin’ graphite
by samaritan Wed Mar 13, 2024 1:31 pm

LISTED COMPANIES

Submit Post
ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post


CONATCT US


Send your suggestions and comments

* - required fields

Read FINANCIAL CHRONICLE™ Disclaimer



EXPERT CHRONICLE™

ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)



CHRONICLE™ YouTube

Disclaimer
FINANCIAL CHRONICLE™ Disclaimer

The information contained in this FINANCIAL CHRONICLE™ have been submitted by third parties directly without any verification by us. The information available in this forum is not researched or purported to be complete description of the subject matter referred to herein. We do not under any circumstances whatsoever guarantee the accuracy and completeness information contained herein. FINANCIAL CHRONICLE™ its blogs, forums, domains, subdomains and/or its affiliates and/or its web masters, administrators or moderators shall not in any way be responsible or liable for loss or damage which any person or party may sustain or incur by relying on the contents of this report and acting directly or indirectly in any manner whatsoever. Trading or investing in stocks & commodities is a high risk activity. Any action you choose to take in the markets is totally your own responsibility, FINANCIAL CHRONICLE™ blogs, forums, domains, subdomains and/or its affiliates and/or its web masters, administrators or moderators shall not be liable for any, direct or indirect, consequential or incidental damages or loss arising out of the use of this information. The information on this website is neither an offer to sell nor solicitation to buy any of the securities mentioned herein. The writers may or may not be trading in the securities mentioned.

Further the writers and users shall not induce or attempt to induce another person to trade in securities using this platform (a) by making or publishing any statement or by making any forecast that he knows to be misleading, false or deceptive; (b) by any dishonest concealment of material facts; (c) by the reckless making or publishing, dishonestly or otherwise of any statement or forecast that is misleading, false or deceptive; or (d) by recording or storing in, or by means of, any mechanical, electronic or other device, information that he knows to be false or misleading in a material particular. Any action writers and users take in respect of (a),(b),(c) and (d) above shall be their own responsibility, FINANCIAL CHRONICLE™ its blogs, forums, domains, subdomains and/or its affiliates and/or its web masters, administrators or moderators shall not be liable for any, direct or indirect, consequential or incidental violation of securities laws of any country, damages or loss arising out of the use of this information.


AI Live Chat

You are not connected. Please login or register

Sri Lanka banking outlook negative, NPLs rise

3 posters

Go down  Message [Page 1 of 1]

ruwan326

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

Sri Lanka banking outlook negative, NPLs rise, but capital stable: Moody's- Sep 05 2018 
Sri Lanka banking outlook negative, NPLs rise Moodys_npl_lgSri Lanka banking outlook negative, NPLs rise WAAACH5BAEKAAAALAAAAAABAAEAAAICRAEAOw==
  

ECONOMYNEXT - Non-performing loans in Sri Lanka's banks rose to 3.0 percent of assets in March 2018 from 2.7 percent a year earlier, though the economy is expected to grow 4.1 percent in 2018 from 3.7 percent last year, Moody's Investors Service, a rating agency said.

"Credit growth was very high over the last two years, with the credit multiplier (credit growth/GDP growth) peaking at more than 2.5 times," Tengfu Li, a Moody's Analyst said in a statement.
"As loans disbursed over this period begin to mature, asset quality will deteriorate, and higher borrowing costs due to tighter monetary policy implemented earlier will add to the debt burden of corporates."
Sri Lanka's central bank printed money and released liquidity of over 500 billion rupees over 2015 and 2016 to drive credit to unsustainable levels and boost credit, and the economy slowed after the currency fell and rates were raised.

The rupee has continued to depreciate steadily including in 2017 when most other Asian currencies appreciated, killing real wages and domestic demand.
Moody's said higher interest rates may reduce the repayment ability of companies. 
But with loan growth slowing internal capital generation would be enough to cover credit growth. Capital had also been raised to comply with Basel III standard.
The impact of higher loan loss provisions from a new accounting standard would be limited and banks capital ratios would be stable, the rating agency said.

Sri Lanka banking outlook negative, NPLs rise Moodys_capital_bgSri Lanka banking outlook negative, NPLs rise WAAACH5BAEKAAAALAAAAAABAAEAAAICRAEAOw==

Moody's assesses the operating environment as stable; asset risk as deteriorating; capital as stable; profitability and efficiency as stable; funding and liquidity as stable; and government support as deteriorating. 
 
Moody's notes that capital has strengthened as the banks successfully raised capital and reduced cash dividends to comply with their Basel III requirements. 
A high debt burden and contingent liabilities relating to state-owned enterprises will continue to limit the government's capacity to support the banks.

​​​​​​​https://economynext.com/Sri_Lanka_banking_outlook_negative,_NPLs_rise,_but_capital_stable__Moody_s-3-11793-17.html

DS Wijesinghe


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

Non Performing loan ratios will further increase with following


People’s bank being looted with Yahapalana political patronage


https://www.newsfirst.lk/2018/08/16/peoples-bank-being-looted-with-political-patronage/



Colombo (News 1st) – There have been multiple reports exposing Jehan Amaratunge’s involvement in obtaining a Rs. 10Bn loan from People’s Bank for  MTD Walkers PLC while serving as both a member of the board of directors of Peoples Bank and the Executive Deputy Chairman of MTD Walkers PLC.
A recent post on social media made some startling revelations about both the People’s bank and Jehan Amaratunge.
Dharshana Handungoda of SL VLOG claims that Minister of Social Welfare and Primary Industries Daya Gamage has obtained a total of Rs. 3.54bn from People’s Bank in loans for 5 of his private companies. Of this, the companies are yet to pay Rs 420mn due to the people bank, in loan installments.
Handungoda states that despite owing People’s bank over Rs 420mn in arrears payments, the Peoples bank continues to grants loans for the said companies. He claims that the General Manager of People’s bank Lasantha Kumara is being threatened by these companies that they will not make the required payments if additional loans are not granted.
The Vlogger also spoke about Jehan Amaratunga who serves on the board of directors of a number of private companies in addition to being on the People’s bank. Handungoda quoting experts in the banking sector states that anyone appointed to the board of directors in a bank should clearly declare as to why they are issuing loans to another company, on which the said persons serves as a board director.
The social media post also reveals that during his tenure as a member of the People’s bank board of directors, Jehan Amaratunge has approved loans amounting to Rs. 10.4bn.
Handungoda also revealed that Jehan Amaratunge is a close confidant of Gamini Senarath who served as the Chief of Staff of President Mahinda Rajapaksa. He further stated that Amaratunge is allowed to carry on with his activities at the Peoples bank because he is now a close confidant of Min. Malik Samarawickrama.

soileconomy

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

Few Giant banks have survived and shown positive results and growth in results so far.
HNB , CBC , NDB , SAMP shown growth almost ever other sectors are going steep down
If these banks are hurt with NPA whole economy system will collapse further.

Sponsored content



Back to top  Message [Page 1 of 1]

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