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National Savings Bank surged its PBT by 192.4% during 1Q2024

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Chairperson Dr. Harsha Cabral P.C. (L) / General Manager/CEO Shashi Kandambi (R)

National Savings Bank began 2024 with a growth momentum, achieving Rs. 3.4 Bn Profit After Tax (PAT) for the first quarter with an impressive increase of 221.8% over the same period last year. Followed by two years of financial hardships, the Bank has reverted its regular financial performance showing the balance sheet strength backed by 100% government guarantee and demonstrating the strong management skills and dedication of employees at all levels.

Downward trajectory in the market interest rates made a positive impact on NSB’s profit and loss statement by lowering cost of funds. The Bank reported a Net Interest Income of Rs. 14Bn for the first three months of the year, an upswing of 79% compared to the same period in 2023. Prevalent low interest rates in the financial market abridged the Bank’s Interest Expense by 18% to Rs. 39 Bn compared to reduction of Interest Income by 4.3% to Rs. 53 Bn which became the major contributor to increase in the Net Interest Income.

Fee and Commission Income increased by 35% which was mainly contributed by Fee and Commission by Cards and Service charges. Commission Income from Trade and Remittance also increased by 17% demonstrating the expansion of Remittance business during the period.

Net Gain from Trading and Net gains/(losses) on derecognition of financial assets through OCI also increased by 85% and 416% respectively mainly due to Trading income from Fixed Income Securities and Realized Gain from Treasury Bills and Treasury Bonds.

The Bank made an impairment charge of Rs. 270 Mn for the period concerned which is a reduction of 11.2% compared to the first quarter of 2023. The Impaired Loan (stage 3) Ratio and Impairment (stage 3) to Stage 3 loans stood at 2.42% and 52.93% respectively indicating the financial resilience and robust controlling mechanisms followed by the Bank. These strategic actions paved the path to increase the bottom line and highlighted the Bank’s dedication to maintaining stability in challenging economic environments.

Accordingly, the Bank reported an operating profit before taxes of Rs. 8.1Bn with a notable increase of 158. 4% despite the increase in operating expenses by 33.2% to Rs. 7.3Bn.

Taxes on financial services increased by 98% to Rs. 2.2 Bn which led to a Profit Before Tax of Rs. 5.8Bn which is a significant 192.4% YoY growth. Income Tax expense increased by 160% up to Rs. 2.5Bn for the three months period of the financial year 2024 resulting in a Profit after Tax of Rs. 3.4Bn with a 221.8% remarkable growth.

Total Assets of the Bank reported Rs. 1.68Tn at the end of first quarter of 2024 with a marginal decrease of 0.3% on account of reduction in the Loans and Advances portfolio. Total Deposits amounted to Rs. 1.5Tn with a marginal increase of 0.9%.

Commenting on the Bank’s performance, Chairperson Dr Harsha Cabral PC said “the resilience of our Bank has been a critical factor in navigating the challenges of the current economic landscape. Our ability to adapt and thrive amid market fluctuations speaks volumes about the strength and stability of our institution”.

General Manager /CEO, Ms Shashi Kandambi commented that “With all the obstacles and hardships faced during last two years, 2024 is a game changing year for National Savings Bank. Our strategic initiatives have yielded significant results, underscoring our commitment to excellence and sustainable growth. Our key operational indicators and performance ratios continued to be robust, demonstrating our strong financial health and operational efficiency. These positive results reinforce our position as a responsible corporate citizen, and we are confident in our ability to build on this momentum in the coming quarters”. She added that “we remain committed to delivering value to our customers, shareholders, and the community”.

Key Performance Indicators

In terms of profitability, liquidity, and capital ratios, the National Savings Bank is exceptionally well-positioned. The Bank reported a Net Interest Margin of 3.34% at the end of first three months of 2024. Return on Assets (ROA) and Return on Equity (ROE) stood at 1.39% and 16.31% respectively showcasing resilient performance. Regulatory Liquidity Coverage Ratio (Rupee), Liquidity Coverage Ratio (All Currency) and Net stable Funding Ratio stood well above the regulatory minimum requirement of 100% at 308.33%, 304.7% and 183.12% respectively. Tier I and Total Capital Adequacy ratios by the end of Q1 2024 stood at 21.074% and 23.372% far above the regulatory minimum levels of 8.5% and 12.5% respectively.

(NSB)



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Canada Day celebration highlights deepening Sri Lanka-Canada business ties

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H.C. Isabelle Martin

The vibrant celebration of Canada’s 159th National Day in Colombo brought together diplomats, government representatives, leading business executives and members of the Sri Lankan and Canadian communities, highlighting the growing strength of bilateral economic and commercial relations between Sri Lanka and Canada.

Hosted by the Canada Sri Lanka Business Convention (CanCham Sri Lanka), the event attracted one of the largest gatherings in its history, providing an important platform for business networking while celebrating the enduring friendship between the two countries.

Addressing the gathering, High Commissioner for Canada in Sri Lanka and the Maldives Isabelle Martin said Canada and Sri Lanka continue to enjoy a warm and expanding partnership built on shared values, people-to-people links, trade, investment and development cooperation.

“Canada Day is an opportunity not only to celebrate our country but also to celebrate the strong friendships and partnerships we have built with Sri Lanka.

The remarkable turnout this evening reflects the strength of those relationships and the growing collaboration between our two nations,” Martin said.

She noted that the close engagement between Canadian and Sri Lankan businesses continues to create new opportunities in trade, innovation, education, sustainable development and investment.

CanCham Sri Lanka officials said this year’s celebration was among the most successful Canada Day events ever organised by the Chamber, drawing an outstanding crowd and creating exceptional opportunities for business networking.

“What an incredible celebration of Canada Day. This was truly one of the most successful Canada Day celebrations in history, with an outstanding crowd and exceptional networking opportunities. It was wonderful to see so many distinguished guests, business leaders and community members come together,” the organisers said.

They thanked sponsors, partners, supporters and volunteers whose dedication ensured the success of the event.

The evening showcased Canada’s multicultural heritage while reaffirming the Chamber’s commitment to promoting stronger commercial links between Sri Lanka and Canada.

Guests representing a wide cross-section of industries exchanged ideas on expanding trade, investment and innovation partnerships.

Canada remains an important economic partner for Sri Lanka, with bilateral trade spanning apparel, agriculture, seafood, ICT services, education and professional services.

Canadian companies continue to explore opportunities in renewable energy, infrastructure, technology and sustainable development, while Sri Lankan exporters maintain a significant presence in the Canadian market.

Business leaders attending the celebration expressed confidence that closer collaboration between the two countries would further strengthen economic resilience and create new opportunities for investment, entrepreneurship and knowledge sharing.

The event concluded on a celebratory note, reaffirming the longstanding friendship between Canada and Sri Lanka and the shared commitment to fostering stronger business and people-to-people ties in the years ahead.

By Ifham Nizam

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Tokyo Cement inspires future-ready construction at BUILD BEYOND 2026 Technology Summit

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Senior Professor Priyan Mendis from the University of Melbourne, speaking at the ‘Build Beyond 2026 Summit

Tokyo Cement hosted ‘Build Beyond 2026 Summit’, a premier knowledge-sharing conference that brought together leading academics, civil and structural engineering experts and professionals of the Sri Lankan construction industry. The event featured keynote addresses by renowned construction technology specialists, Professor Shashank Bishnoi from the Indian Institute of Technology (IIT) Delhi-Abu Dhabi, and Senior Professor Priyan Mendis from the University of Melbourne.

The summit marked the second edition of the Build Beyond Engineering Technology Summit organized by the Tokyo Cement Group, designed to foster collaboration between academia and industry while highlighting global trends, innovations, and emerging technologies in cement and concrete. This year’s discussions focused on advancements in material science that are driving more sustainable and cost-efficient construction practices.

The event drew participation from state-sector authorities, research institutions, academia, engineering students, and public and private sector organizations, creating a dynamic platform for engagement across the construction industry. A key feature of the summit was a high-level panel discussion on “Building a Resilient and Sustainable Construction Future,” featuring several distinguished industry leaders.

The panel included Eng. Nissanka Wijerathne, the Secretary General/CEO of the Chamber of Construction Industry Sri Lanka (CCI), Founder and Deputy Chairman of Civil & Structural Engineering Consultants (Pvt.) Ltd.; Eng. Shiromal Fernando, the Chairman of CTBUH Sri Lanka and Vice President of the Green Building Council Sri Lanka, Adjunct Senior Lecturer at the General Sir John Kotelawala Defense University and visiting lecturer at the University of Moratuwa; Eng.

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ComBank and Carmart join forces to make Peugeot and Leapmotor vehicles more accessible

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Kapila Liyanage, Assistant General Manager – Personal Banking and Retail Products at Commercial Bank and Senake Amerasinghe, Managing Director of Carmart (Pvt) Ltd. exchange the agreement in the presence of representatives of the two companies.

Strengthening its commitment to making vehicle ownership more accessible and affordable, Commercial Bank of Ceylon has entered into a strategic partnership with Carmart (Pvt) Ltd. to offer specially structured leasing facilities for Peugeot and Leapmotor vehicles.

Formalised through a Memorandum of Understanding (MoU), the collaboration brings together the Bank’s expertise in flexible financing and Carmart’s portfolio of internationally recognised vehicle brands, creating a value-rich proposition for customers seeking to purchase new vehicles.

Under this MoU, valid until 30th June 2027, Commercial Bank will offer attractive interest rates, concessions on documentation charges, and a complimentary credit card with the first year’s annual fee waived. These benefits are designed to reduce upfront costs and ease the financial commitment associated with vehicle ownership.

With leasing facilities available through Commercial Bank’s island-wide branch network, a cross section of customers will be able to part-finance their vehicle purchases while structuring repayments to align with their income patterns, enabling greater financial flexibility.

Further enhancing the value proposition, Carmart (Pvt) Ltd. will offer customers a range of added benefits, including a complimentary full tank of fuel, free vehicle registration, and other exclusive privileges, making the overall vehicle ownership experience more rewarding.

The Bank said the partnership reflects its continued focus on delivering practical and customer-centric leasing solutions in collaboration with reputed vendors. By combining competitive rates with cost-saving concessions, the Bank aims to make vehicle ownership more attainable for both existing and new customers.

This collaboration is particularly significant in the current market context, as it offers customers the opportunity to benefit from preferential leasing terms while managing repayments in a way that suits their financial circumstances.

As a pioneer in leasing solutions, Commercial Bank continues to innovate through strategic alliances that enhance value, broaden choice, and support customers in achieving their lifestyle aspirations.

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