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Monday June 3rd, 2024

Sri Lanka’s Pan Asia Bank profits surge in Dec on bad loan recovery

ECONOMYNEXT- Net profits at Sri Lanka’s Pan Asia Banking Corporation Plc (PABC) grew 58 percent to 726.8 million rupees in the December quarter from a year earlier amid a rise in bad loan recovery and lower interest costs.

The bank reported earnings of 1.64 rupee per share. For the 12 months ended December 2019, the bank reported earnings of 3.96 rupees a share on total profits of 1.7 billion rupees, up 14 percent from a year ago. The PABC share closed at 12.20 rupees on Wednesday.

The bank in an earnings release statement said the December quarter profits were its highest ever.

Interest income for the quarter fell 3 percent to 4.9 billion rupees amid central bank price controls on loans.

However, interest expenses dropped 10 percent to three billion rupees on the bank’s efforts to slowdown deposits and ‘purge certain high cost time deposits’, leading to net interest income to grow 9 percent to 1.9 billion rupees.

PABC said it managed a 17.9 million rupee reversal on bad loan provisions from a 485.44 million rupee provisioning charge a year earlier, on close monitoring of overdue credit portfolios and strict recovery efforts.

The bank’s loan book grew 3 percent to 111.19 billion rupees, against the industry’s 5 percent.

Bad loans at end-December grew to 6.31 percent from 5.44 percent a year earlier, against an industry average of 4.7 percent at end-December.

Pan Asia Bank’s deposit base grew 3 percent to 122.5 billion rupees.

The bank’s asset base as at December 2019 fell one percent to 153 billion rupees on lower debt and other instrument holdings while net assets grew 19 percent to 13 billion rupees.

The bank reported a tier 1 capital ratio of 12.87 percent, up from 11.51 percent in 2018, standing above the minimum requirement of 8.5 percent.

The total capital ratio grew to 14.31 percent from 13.32 percent against the required rate of 12.5 percent.

Return on equity grew to 14.5 percent from 13.37 percent. Return on Assets also increased to 1.52 percent from 1.28 percent a year earlier.

“As most of our challenges are now behind us, I believe the prevailing low interest rates and tax rates and the expected policy and political stability would provide the much needed tailwind for the industry to march ahead with much vigor,” PABC Chief Executive Namal Tillekeratne said.
(Colombo/Feb19/2020)
Reported by Tania Madies and Edited by Chandeepa Wettasinghe

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Water levels rising in Sri Lanka Kalu, Nilwala river basins: Irrigation Department

Sri Lanka Navy assisting in rescue operations (Pic courtesy SL Navy)

ECONOMYNEXT – Sri Lanka’s Irrigation Department has issued warnings that water levels in the Kalu and Nilwala river basins are rising and major flooding is possible due to the continuous rain. People living in close proximity are advised to take precautions.

“There is a high possibility of slowly increasing prevailing flood lowline areas of Kiriella, Millaniya, Ingiriya, Horana, Dodangoda, Bulathsinhala, Palinda Nuwara and Madurawala D/S divisions of Ratnapura and Kalutara Districts, up to next 48 hours,” it said issuing a warning.

“In addition, flood situation prevailing at upstream lowline areas of Ratnapura district will further be prevailing with a slight decrease.

“The residents and vehicle drivers running through those area are requested to pay high attention in this regard.

“Disaster Management Authorities are requested to take adequate precautions in this regard.”

The island is in the midst of south western monsoon.

DMC reported that 11,864 people belonging to 3,727 families have been affected due to the weather in Rathnapura, Kegalle, Kilinochchi, Jaffna, Mullaitivu, Kalutara, Gampaha, Colombo, Galle, Matara, Hambantota, Puttalam, Kurunegala, Kandy, Nuwara Eliya, Anuradhapura, Polonnaruwa, Badulla, Moneragala, and Trincomalee districts.

Meanwhile, the Meteorology Department stated that showers are expected on most parts of the island today.(Colombo/June3/2024)

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UNP gen secy defends call for postponing Sri Lanka poll, claims opposition silent

The UNP party headquarters in Pitakotte/EconomyNext

ECONOMYNEXT — United National Party (UNP) General Secretary Palitha Range Bandara has defended his call for postponing Sri Lanka’s presidential election by two years, claiming that his proposal was not undemocratic nor unconstitutional.

Speaking to reporters at the UNP headquarters Monday June 03 morning, Bandara also claimed that neither opposition leader Sajith Premadasa nor National People’s Power (NPP) leader Anura Kumara Dissanayake have spoken against his proposal.

“I have made no statement that’s undemocratic. My statement was in line with provisions of the constitution,” the former UNP parliamentarian said.

He quoted Section 86 of Chapter XIII of the constitution which says: “The President may, subject to the provisions of Article 85, submit to the People by Referendum any matter which in the opinion of the President is of national importance.”

Sections 87.1, 87.2 also elaborates on the matter and describes the parliament’s role, said Bandara.

“I spoke of a referendum and parliament’s duty. Neither of this is antidemocratic or unconstitutional. As per the constitution, priority should be given to ensuring people’s right to life,” he said.

“Some parties may be against what I proposed. They may criticse me. But what I ask them is to come to one position as political parties and make a statement on whether they’re ready to continue the ongoing economic programme,” he added.

Bandara claimed that, though thee has been much criticism of his proposal for a postponement of the presidential election, President Wickremesinghe’s rivals Premadasa and Dissanayake have yet to remark on the matter.

“I suggested that [Premadasa] make this proposal in parliament and for [Dissanayake] to second it. But I don’t see that either Premadasa nor Dissanayake is opposed to it. To date, I have not seen nor heard either of them utter a word against this. I believe they have no objection to my proposal which was made for the betterment of the country,” he said. (Colombo/Jun03/2024)

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300 of 100,000 trees in Colombo considered high risk: state minister

ECONOMYNEXT – Trees in Sri Lanka’s capital Colombo are being monitored by the municipal council, Army and Civil Defense Force as the severe weather conditions continue, State Minister for Defense Premitha Bandara Tennakoon said.

“Within the Colombo Municipal Council city limits, there are 100,000 trees. Of these, around 300 are considered high risk,” Tennakoon told reporters at a media conference to raise awareness about the current disaster management situation.

Not all trees required to be cut down he said. “We can trim some of the branches and retain them.”

The problem was that buildings in the vicinity of the tree had cut branches on one side, causing it to become unbalanced, the minister said.

New laws would be brought in so provincial/municipal institutions could strengthen enforcement of building codes.

“We don’t have a single institution that can issue a warning about a tree. Not one to tell us what trees can or cannot be planted near a road.

“Trees should be suitable for the area. Some trees have roots that spread and damage roads, buildings. When the roots can’t go deep, they tend to topple over.

“Now Environment Day is coming up, and anyone can go plant a tree by the road. We have to take a decision about this. We have to enforce laws strongly in future.” (Colombo/June3/2024)

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