Business
Pan Asia Bank’s first nine months performance reflects resilience amid adversities
Pan Asia Banking Corporation PLC reflected resilience amidst a multitude of adversities emanating from challenging macro-economic conditions. The Bank’s financial performance for the period ended 30th September 2022 demonstrates judicious portfolio management and prudency exercised in dealing with possible fallout on its asset quality from the sharp increase in interest rates.
During the period under review, the Bank increased its net interest income by 11% to Rs. 7,433.6 million as testament to the enhanced management of its asset and liability portfolio, making the most of the rising rates. For the nine-month period, the Bank reported a Pre-Tax Profit of Rs.626 million and a Post-Tax Profit of Rs.433 million.
“Our performance is a testament that we have put quality over quantity this year, when the circumstances dramatically changed from what we witnessed last year. This was achieved while managing the assets and liabilities to generate returns from our existing portfolio, along with keeping a closer tab on operational expenses amid runaway inflation,” noted Nimal Tillekeratne, the Bank’s Managing Director/Chief Executive Officer.
The Bank sensibly increased its provision buffers for loan losses during the period under review by introducing changes to impairment models, taking into consideration increased risks and uncertainties emerged due to the turbulent economic conditions in the country, including additional provisions on the Bank’s investments in foreign currency denominated financial instruments of Government of Sri Lanka. The impairment expense for the reporting period includes provisions made on foreign currency exposures to the Government of Sri Lanka and amounted to Rs.1.58 billion.
Meanwhile, the Bank’s Net Fee and Commission Income recorded a growth of 6% mainly due to increased volumes and rates of international trade activities, guarantees and remittances. The Net Gains from Trading increased by 264% mainly resulting from reporting high premiums in forex swap agreements due to the unconventional developments in the swap market, which was heavily discounted in the previous period.
The Bank strived for earnings maximization through portfolio re-alignment and cost management despite sector vulnerabilities that prevailed since last year. The Bank’s Cost-to-Income Ratio improved during the period under review, owing to excellence in core banking performance, which is reflected in growth across most key revenue lines and due to various strategies and measures taken to contain the increase in overhead costs. In fact, the Bank managed to contain the increase in Other Operating Expenses at 15% during the period under review compared to the previous period despite rising commodity prices.
The Bank’s Total Asset base stood at Rs. 205 billion as at 30th September 2022, after posting a growth of 8% during the nine-month period, supported mainly by the expansion in investments and loan book. The Gross Loans and Advances book recorded a growth of 4% to reach Rs. 157.04 billion, with major contributions from the Retail segment. The Customer Deposits recorded a growth of 8% to reach Rs.157.64 billion as at 30th September 2022.
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 at 30th September 2022 stood at 13.44% and 15.41% respectively. The Bank’s Statutory Liquid Assets Ratio (SLAR) as at 30thSeptember 2022 stood at 23.50% and 83.93% 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 of 194.77%and207.16% for All Currencies and LKR respectively.
The commitment to technology adoption was demonstrated via many activities deployed during 2021/22 to ensure a seamless banking experience. Pan Asia Bank became the First Bank to integrate with the Lanka Clear, Common Interface of Lanka Pay Payment platform, through Internet Banking – enabling customers to carry out government payments digitally. Existing customers were also empowered to open savings accounts through Internet Banking and to check their credit card balance through a missed call facility without having to reach the contact centre. The implementation of the new leasing system during the period under consideration enhanced internal processes and the overall customer experience. Despite the external environment, the Bank continues to invest and focused on the core operation, product management, people development, and technology integrations.
Going from strength to strength, Pan Asia Bank secured the Runner-up Award – Banking sector, and the Merit Award – Corporate Governance category, at the annual National Business Excellence Awards (NBEA), organized by the National Chamber of Commerce of Sri Lanka. It was also selected by LMD as one of the top 15 ‘Most Awarded Entities’ and top ‘Most Respected’ Entities along with many other accolades and recognitions. The most recent addition to this list is Pan Asia Bank’s award as one of Business Today’s Top 40 business organizations for 2021-2022. This award is given to the largest organizations in the country based on a variety of criteria such as portfolio, profits and risks taken, resilience, passion, and how well challenges are met.
Business
Needs of populace hit by Cyclone Ditwah seen as waiting to be addressed
By Hiran H. Senewiratne
The government is yet to address fully the needs of the Cyclone Ditwah affected populace though one year has elapsed. The devastation cost the country more than US $ 4.1 billion, an Australia-based Chartered Engineer of Sri Lankan origin said.
‘Cyclone Ditwah affected more than 2.2 million people in 25 districts, which is considered to be one tenth of the population. However, only 39 percent of the allocated funds have been spent to date, the speaker, a one-time General Secretary of the JVP, now living in Australia Lionel Bopage said.
He made these comments at a Rotary Club Colombo South monthly meeting held at the Kingsbury Hotel, Colombo recently.
Bopage quoted from a Loughborough University research report published in February to the effect that Sri Lanka has under invested in prevention but over invested in recovery.
Bopage added: ‘The largest single economic category affected were not buildings but the agriculture sector which provides livelihoods for the majority of affected persons. Therefore agricultural livelihoods have been hit most.
‘More than 58,000 hectares of paddy lands were flooded in the Eastern districts alone, while 46 reservoirs reached critical spill level or failed outright following the disaster.
‘A rapid education sector assessment found that 1,682 schools were affected and more than 555,000 children were unable to attend schools. Further, 622 water supply schemes had been left non-functional and apart from that 11300 homes were damaged or destroyed. But reconstruction is happening at a very slow pace.
‘Tens of thousands of households in the hill country and in the East are still living in damaged properties and on unstable slopes drawing water from schemes that have not been restored.
‘ A Post Disaster Needs Assessment put the cost of resilience at US$ 3.4 billion but restoration work is happening at a slow pace even with foreign donor assistance.’
Business
WB forecast buoys bourse but weak investor participation slows momentum
By Hiran H. Senewiratne
The CSE yesterday kicked off on a positive note due to a World Bank forecast that Sri Lanka could achieve 4.4 percent economic growth this year but later lost momentum due to weak investor participation.
Amid those developments both indices moved upwards. The All Share Price Index went up by 132 points while S and P SL20 rose by 21.02 points.
Turnover stood at Rs 1.97 billion with three crossings. Those crossings were; Lanka IOC 2.7 million shares crossed to the tune of Rs 470 million; its shares traded at Rs 127, CCS 2.7 million shares crossed to the tune of Rs 315 million; its shares sold at Rs 118 and JKH five million shares crossed for Rs 91.5 million; its shares traded at Rs 18.30.
In the retail market companies that mainly contributed to the turnover were; Commercial Credit and Finance Rs 126 million (1.3 million shares traded), Lanka IOC Rs 98 million (775,000 shares traded), Asiri Surgical Hospitals Rs 77 million (7.6 million shares traded), Commercial Bank Rs 51.3 million (307,000 shares traded), Sampath Bank Rs 46 million (325,000 shares traded), HNB Rs 37 million (98000 shares traded) and Tokyo Cement Rs 31 million (393,000 shares traded). During the day 50 million share volumes changed hands in 14547 transactions.
It is said that the petroleum sector performed well, especially Lanka IOC, while in the banking sector counters, especially Commercial Bank and Sampath Bank performed well. In the manufacturing sector, JKH impressed.
TAL Lanka Hotels announced that it has scheduled an Extraordinary General Meeting on October 29 to obtain shareholder approval for a proposed Rs 1.87 billion rights issue. The proceeds will be utilized for the repayment of bank borrowings, part refurbishment of the Taj Samudra Hotel in Colombo, settlement of vendor liabilities, and general corporate requirements.
Yesterday the rupee was quoted at Rs 330.95/331.05 to the US dollar in the spot market, weaker from Rs 330.85/95 the previous day, while bond yields were quoted broadly steady, dealers said.
Business
Huawei continues to showcase practical AI applications at Sri Lanka AI Week 2026
Sri Lanka AI Week 2026 continued into its second day bringing together government, industry, academia and technology partners to explore practical applications of artificial intelligence. As the AI Technology Partner for the second consecutive year, Huawei showcased 18 use cases spanning government, education, finance, industry, green energy and everyday life, demonstrating how AI can be applied to real-world needs.
Prime Minister Dr. Harini Amarasuriya visited the Huawei exhibition together with officials from the Ministry of Education, Higher Education and Vocational Education, experiencing the Smart Classroom, AI in Education and MindGraph by Beijing Normal University demonstrations. The Smart Classroom demostration highlighted how connected technologies can bring teachers and students in different locations into a shared learning environment, while the AI in Education showcase demonstrated how AI can support teachers, enhance learning and enable more personalised education. The Prime Minister praised the efforts of the Ministry of Education, Higher Education and Vocational Education, Huawei and their partners to demonstrate practical applications of AI in education, noting the role of technology in supporting teachers, expanding learning opportunities, and advancing a more inclusive, equitable and future-ready education system.
Later in the day, Deputy Minister of Digital Economy Eng. Eranga Weeraratne, Deputy Minister of Industry and Entrepreneurship Development Chathuranga Abeysinghe, Secretary to the Ministry of Digital Economy Waruna Sri Dhanapala, and Chinese Ambassador Wei Huaxiang visited the Huawei exhibition and explored the AI Hands-On Classroom AI Empowering Industry, AI in Education and Smart Classroom demonstrations. Deputy Minister Weeraratne praised Huawei’s practical approach to showcasing AI applications, noting their relevance to Sri Lanka’s digital transformation across education, industry and skills development. The engagement also extended across the wider AI ecosystem, with industry professionals, technology partners, academics and other visitors engaging with the demonstrations and expressing appreciation for Huawei’s practical approach to applying AI across different areas of society and the economy.
Daniel Wu, CEO of Huawei Sri Lanka, said that Huawei will continue bringing global experience, technology and ecosystem resources to Sri Lanka, while working side by side with local partners to build local capabilities, develop local talent and create real value for the country. “I believe that by working together, we can make AI not only more intelligent, but also more local, more inclusive, and more meaningful for everyone,” he said.
-
Editorial6 days agoColombo Port drug bust: The plot thickens
-
Features4 days agoThe first woman in the foreign service or Ceylon Overseas Service it was then called
-
Editorial5 days agoFuelling discontent and protest
-
News3 days agoGeneva takes up Sallay’s case and govt. ignores opportunity to answer accusations
-
Foreign News5 days agoTen injured after car crashes into rugby supporters in Australia
-
Latest News5 days agoTharindu Rathnayake, bowlers secure Asian Games Bronze for Sri Lanka
-
News4 days agoNearly 20 Iranian tankers stranded off Lanka amid US sanctions
-
Features3 days agoSri Lanka Cricket Bill: Governance reform is not yet a cricket strategy
