Strong asset and other income growth combined with an emphasis on prudent provisioning in one of the most challenging years on record, have enabled the Commercial Bank of Ceylon Group to end 2020 on a stable platform for growth, with better liquidity than most peers and adequate provision cover.
The Group, comprising of Sri Lanka’s benchmark private bank, its subsidiaries and an associate, has reported Gross income of Rs 151.966 billion for the year ending December 31, 2020, which although a marginal improvement over the preceding year, included net interest income of Rs 50.869 billion for the full year and Rs 14.073 billion for the last quarter alone, representing growths of 5.20% and 17.93% respectively.
This growth was attributed to interest expenses reducing by 9.53% to Rs 73.219 billion in a period when interest income declined by 4.02% to Rs 124.088 billion due to the reduction in interest rates and the modification losses incurred on interest concessions granted as pandemic relief to borrowers, that were recognised in the second quarter of the year. The Bank also achieved a creditable improvement to its CASA ratio from 37.10% to 42.72% helping to reduce interest expenses.
One of the noteworthy contributors to performance in the year under review was other income of Rs 16.039 billion, reflecting a growth of 86.97% from Rs 8.578 billion for 2019. This was made possible by net gains from trading improving by 38.01% to Rs 1.878 billion; a net gain of Rs 6.390 billion on derecognition of financial assets, which was an increase of 462.66% over the preceding year; and foreign exchange income growing by 27.87% to Rs 7.396 billion due to a 2.81% depreciation of the Rupee against the Dollar in the period under review, leading to net other operating income improving by 27.77% to Rs 7.771 billion.
Consequently, total operating income of the Group for the year grew by 13.36% to Rs 76.729 billion and by an impressive 17.61% to Rs 20.912 billion for the fourth quarter alone. The impairment charges and provisioning for other losses increased by Rs 10.088 billion or 89.03% YoY, taking impairment charges for the year to Rs 21.420 billion in consideration of certain identified risk-elevated sectors. (ComBank)
Newly developed Sathosa Motors Service Complex to service all vehicle brands
Sathosa Motors PLC and its new state-of-the-art vehicle service complex, is now serving not just Isuzu but also any brand of vehicle.
Pioneering automotive specialist, Sathosa Motors is the sole authorized agent for the world-renowned Isuzu brand, but the newly developed service complex will now undertake all kinds of services required for any brand of vehicle.
The internationally trained specialists are ready to serve you at the Sathosa Motors Service Complex now on weekdays from 8.00 am to 5.00 pm and on Saturday from 8.00 am to 1.00 pm at No 25, Vauxhall Street, Colombo 02.
Sathosa Motors PLC guarantees its customers reliable and convenient service and will undertake vehicle inspections, periodic maintenance, body and under carriage washing, interior cleaning and beautification, engine tuning, error diagnosis, accident repairs, air condition repairs, and many more at a highly affordable rate.
In addition, genuine spare parts, as well as lubricants and industrial services are available at discounted prices at the Service Complex.
Sathosa Motors PLC aims to provide high quality services at all times and all services are carried out strictly under health guidelines due to the prevailing COVID-19 pandemic situation.
Sathosa Motors announces that it has decided to keep all branches of the Sathosa Motors service network open to continue to serve its customers.
CSE trading bullish despite rupee hitting historic low against dollar
By Hiran H.Senewiratne
CSE trading activities were bullish despite Sri Lanka’s rupee registering a historic slump against the US dollar at 202/205 to the one month dollar in mid morning trade yesterday, after opening at around 200/203.The stock market moved up, though, anticipating March quarterly results to be exceptional. This is expected to be particularly true of the Hayleys Group and Expolanka. Accordingly, investors seem to be re-entering the market after January, stock market analysts said.
Further, approval of the US $ 500 million Chinese loan and the fact that the Port City Bill has been tabled in parliament have lifted investor sentiment in a significant direction of the stock market, market analysts said. Amid those developments, both indices moved upwards, especially the All Share Price Index went up by 1.22 percent. The All Share Price Index rose by 92.35 points and S and P SL20 went up by 19.21 points. Turnover stood at Rs. 4.72 billion with four crossings.
Those crossings were reported in JKH, which crossed 922,000 shares to the tune of Rs. 137.8 million, its shares traded at Rs. 149.25, Commercial Bank 950,000 shares crossed for Rs. 82.7 million, its shares traded at Rs. 87, HNB 155,000 shares crossed for Rs. 26.5 million, its shares traded at Rs. 132 and Ceylon Cold Stores 33,500 shares crossed for Rs. 20.1 million, its shares fetching Rs. 600.
In the retail market, five companies that mainly contributed to the turnover were, Browns Investments Rs. 793.6 million (123.1 million shares traded), LOLC Rs. 463.4 million (1.32 million shares traded), Royal Ceramic Rs. 442 million (1.2 million shares traded), Hayleys Rs. 442 million (five million shares traded), Dipped Products Rs. 372.3 million (6.2 million shares traded). During the day 197.3 million share volumes changed hands in 30480 transactions.
The market was quite bullish from the beginning and LOLC Group companies led the market. It is said that LOLC contributed 25.5 points to the All Share Price Index. Browns Investments 9.8 points and Vallibel One contributed 8 points to the All Share Price Price Index while Commercial Leasing contributed six points.
‘Embark on that long-awaited getaway with Emirates and enjoy special fares’
Emirates is launching seasonal fares that enable aspiring globetrotters to plan exciting adventures around the world as well as for students preparing to travel overseas. With Emirates’ generous booking policies, customers have the option to lock in these special fares and extend ticket validity for up to three years, enjoying greater flexibility and confidence when planning travel during unprecedented times.
Travellers in Sri Lanka can look forward to flight deals on all routes in Emirates’ global network, with return fares starting at only Rs 68,700 in Economy Class or Rs 257,500 in Business Class. These special seasonal fares are available for bookings made from 13 to 26 April 2021, and are valid for travel between 16 April and 30 September 2021*.
Featured destinations and starting Economy Class fares include: US$ 342 (about Rs 68,700 at current exchange rates) to Dubai, US$ 654 (about Rs 131,300) to Milan, US$ 644 (about Rs 129,300) to Paris, US$ 1,117 (about Rs 224,200) to New York, US$ 1,303 (about Rs 261,500) to Toronto and US$ 966 (about Rs 193,900) to Nairobi.
Special Business Class fares start at US$ 1,283 (approximately Rs 257,500) to Dubai, from US$ 3,127 (about Rs 627,600) to Milan, US$ 2,860 (about Rs 574,000) to Paris, US$ 3,618 (about Rs 726,100) to New York, US$ 3,654 (about Rs 733,300) to Toronto and US$ 2,179 (about Rs 437,300) to Nairobi. All fares in Rupees are subject to the rate of exchange on the day of purchase.
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