Business

Nations Trust Bank continues resilient performance

Published

5 years ago

2021/05/14

Despite the challenging business environment, the Bank continued its planned “K shaped” recovery strategy by increasing the loan portfolio by LKR 20 billion recording an increase of 10% during the quarter. Nations Trust Bank continued to provide working capital loans under the “Saubhagya” scheme introduced by the government to assist customers across all segments.

Understanding the importance of assisting the adversely impacted businesses for their revival and to rebuild of businesses and livelihoods, the bank contributed over LKR 19 billion new credit facilities under its own revival fund “Nations Diriya” scheme which is dedicated to extending financial support to key industries, enabling such businesses to recommence and rebuild their business operations.

Furthermore, the bank also offered special payment relief schemes and repayment plans for the existing borrowers in addition to the Central Bank mandated moratorium schemes with low interest rates and restructured repayment plans for some of the identified industries and businesses segments.

Nations Trust Bank raised $25 million from IFC during the quarter to support Sri Lankan SME businesses with improved access to critical working capital to continue operations and preserve lives and livelihoods. Over the years, IFC-NTB partnership has helped create a promising future for many small businesses across Sri Lanka, opening new markets and opportunities and creating new vistas.

Essential banking services continued to be provided despite some parts of the country being isolated to mitigate a third wave of COVID-19 post Sinhala and Tamil New Year. During these unprecedented times the investments made on digital platforms have assisted all key stakeholders to stay connected and conduct business while ensuring their safety in carrying out day to day banking activity by having access to the bank at their fingertips. In-person meetings were converted to organization-wide virtual meetings adhering to all safety protocols.

PCR and Antigen tests for identified staff were undertaken by the bank at regular intervals ensuring the safety of staff and customers. Special staff transportation at concessionary rates were arranged during the pandemic for staff to conveniently commute to work as an additional safety measure. The bank ensured all safety protocols are implemented in close consultation with the public health authorities, across the network.

Despite subdued economic conditions due to the pandemic, the group recorded a Profit Before Tax growth of 39% for the 3 months ended 31st March 2021 compared to previous year.

Net Interest Income continued to decline primarily due to the reduction in the market interest rates while interest rate ceilings introduced by the regulator impacted some business portfolios. Yields on loans reduced by 370bps in line with the fall in AWPLR by 350 bps supporting the loan growth and the economic recovery efforts. A reduction in yields in the FIS portfolio, after the profits taken on the high yielding securities, further aggravated the net interest income decline. However, the improvement of CASA ratio to 35% as at end March 2021 from 29% as at end March 2020 helped partially offset the decline in interest margins during the period.

Gains on trading FX increased as a result of FX funding swaps with a higher depreciation of the rupee during the current period in contrast to the depreciation during the same period last year. The bank also benefited with trading profits on its’ fixed income securities portfolio with the fall in market rates.

Suspension or refund of certain charges by the bank, considering the current difficulties faced by customers due to the COVID-19 pandemic, negatively impacted the bank’s fee-based income. Cards income declined on account of a decrease in card spend due to changes in customer behavior patterns owing to the restrictions in mobility and overseas travel. A drop in discretionary spend was visible due to these phenomena. However, a positive trend could be seen in Trade Finance related income with the increase in some of the Trade Finance related activities. (NTB)

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Business

Sri Lanka secures IMF staff-level deal for USD 700 million tranche

Published

23 hours ago

2026/04/10

Thilina Walpola

Sri Lanka has reached a staff-level agreement with the International Monetary Fund to secure the next tranche of funding under its ongoing bailout programme, marking a key step in the country’s fragile economic recovery.

The agreement, announced this week, will enable Sri Lanka to access approximately USD 700 million, subject to approval by the IMF Executive Board. The funds form part of the USD 2.9 billion Extended Fund Facility (EFF) programme agreed following the 2022 economic crisis.

The latest development covers the combined fifth and sixth reviews of Sri Lanka’s reform programme, indicating that the country has made sufficient progress to move forward, while highlighting the need to sustain reform efforts.

Sri Lanka’s economy has shown signs of stabilisation in recent months, supported by improved revenue collection, easing inflation, and a gradual buildup of foreign reserves. However, the recovery remains vulnerable to both domestic and external pressures.

By Ifham Nizam

Business

Israeli attack on Lebanon triggers local stock market volatility

Published

23 hours ago

2026/04/10

Thilina Walpola

Initially CSE trading was somewhat volatile despite the ceasefire in West Asia but it experienced further volatility after Israel attacked Lebanon yesterday.

However, the IMF delegation which is now in Sri Lanka to release two tranches of its relief package created some positive sentiments for the market, analysts said.

The All Share Price Index went down by 73.06 points, while the S and P SL20 rose by 10.57 points.

Turnover stood at Rs 2.96 billion with six crossings. Those crossings were: JKH 5.5 million shares crossed to the tune of Rs 807.6 million and its shares traded at Rs 19.70, CIC Holdings two million shares crossed for Rs 54 million; its shares traded at Rs 32, Access Engineering 600,000 shares crossed for Rs 44.4 million; its shares traded at Rs 74, Central Finance 116,000 shares crossed to the tune of Rs 27.5 million ; its shares sold at Rs 237, LMF 250,000 shares crossed for Rs 22.8 million; its shares fetched Rs 91.10 and Kelani Cables 200,000 shares crossed for Rs 21 million and its shares traded at Rs 105.

In the retail market seven companies that mainly contributed to the turnover were; Dialog Rs237 million (7.5 million shares traded), LMF Rs 203 million (22 million shares traded), Colombo Dockyard Rs 199.7 million (1.1 million shares traded), HBA Foods Rs 163 million (18.5 million shares traded), JKH Rs 156 million (7.8 million shares traded), JKH Rs 156 million (7.8 million shares traded), Softlogic Holdings Rs 117 million (9.6 million shares traded) and Acme Printers Rs 107 million (15.6 million shares traded). During the day 133.3 million share volumes changed hands in 23666 transactions.

It is said that manufacturing sector counters, like JKH, performed well, while food sector counters, especially LMF and HBA Foods, performed well. Other sectors too performed somewhat well during the day.

Yesterday the rupee was quoted a Rs 315.42/48 to the US dollar in the spot market from 315.30/40 the previous day, dealers said, while bond yields were quoted higher.

By Hiran H. Senewiratne

Business

HNB Assurance marks 25 years with strategic transformation to ‘HNB Life’

Published

23 hours ago

2026/04/10

Thilina Walpola

Highlights from the new brand reveal as HNB Assurance transforms into HNB Life

Marking 25 years of trust, growth, and service excellence, HNB Assurance PLC has unveiled its new corporate identity, transitioning to HNB Life PLC a strategic evolution that reflects the company’s forward-looking vision and commitment to empowering lives with protection and the freedom to thrive, no matter where life takes them.

This milestone signifies more than a change in name or visual identity. It represents a deliberate transformation shaped by strong performance over the past few years, during which the company has achieved remarkable growth, strengthened its market position and enhanced its customer-centric capabilities.

The newly introduced logo, inspired by the form of a wing, symbolises HNB Life’s role as a proactive enabler. It reflects the organisation’s commitment to supporting individuals in navigating life’s journey with confidence, empowering them to pursue their aspirations and live life on their own terms.

The official unveiling took place at a launch event attended by key stakeholders, strategic business partners, well-wishers and employees.

Addressing the gathering, Chairman, Stuart Chapman highlighted the significance of this transformation, stating, “As we mark 25 years of progress, the transition to HNB Life reflects our strategic intent to evolve with the changing needs of our customers and the broader market. This new identity embodies our purpose, to enable and empower individuals to achieve what they truly aspire to in life, with confidence and security. As a company we are extremely excited on what the future holds for as, as we build on an incredible foundation laid over the past two and a half decades.”

The new Vision of the Company is “To be the leader in empowering lives with protection and freedom to thrive, no matter where life takes them”.