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ComBank to preserve positive growth momentum in its loan book

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Impairment provisioning also noticed a significant drop of 41.9% YoY

ComBank is expected to keep up the positive momentum in its loan book while maintaining growth within a range of 11% – 12% in the coming years, according to the Bank’s earnings update released by First Capital Research.

“Commercial Bank of Ceylon plc., has posted exceptional results for 3Q2021 with earnings improved by 78.4%YoY to LKR 6.6 billion compared to LKR 3.7 billion recorded in 3Q2020. Improvement in NII, Fee and Commission Income and Other Operating Income have largely contributed towards the outstanding results of the quarter. Moreover, impairment provisioning also noticed a significant drop of 41.9% YoY despite recording a rise of 7.6%YoY for 9M2021,” First Capital said.

The update further said,” ComBank recorded a gross loan growth of 10.9% to LKR 1.1 trillion for 9M2021 with a net loan growth of 9.9% year-to-date. Increased appetite for credit by corporate as well as individuals is expected to stimulate the gradual economic recovery and thereby enable ComBank to persevere the positive growth momentum in the loan book.”

“Thus, we are upgrading our earnings forecast for 2021E and 2022E to LKR 25.1Bn and LKR 27.3Bn, respectively. However, considering the higher risk-free rate stemming from the increased interest rates, we are almost rolling over our previous target price for 2021E of ComBank for 2022E at LKR 115.0 together with a total upside potential of 55.0%.”

“Improvement in NII, Fee and Commission Income and Other Operating Income have largely contributed towards the outstanding results of the quarter. Interest expense displayed a notable reduction owing to the low interest rate regime and the considerable lag in terms of repricing of deposits, thereby improving the NII by 16.7%YoY to LKR 16.4Bn. Fee and Commission Income also posted a sizable expansion by 24.6%YoY promoted by the extensive use of card transactions and online payment platforms during the lockdown period. Net Other Operating Income posted an enormous growth of 644.7%YoY to LKR 2.6Bn on account of the higher foreign exchange gains. Moreover, impairment provisioning also noticed a significant drop of 41.9%YoY despite recording a rise of 7.6%YoY for 9M2021. Considering more than expected earnings delivered during 9M2021, we have enhanced our NII target for 2021E to LKR 60.3Bn (+23% from the previous target) and for 2022E to LKR 64.0Bn (+16% from the previous target). We have also restated our earnings targets for 2021 and 2022 to LKR 25.1Bn and LKR 27.3Bn, respectively.”

“Revival in private sector credit advanced the Gross Loan Book by 10.9%.”

“COMB has achieved a gross loan growth of 10.9% to LKR 1.1Tn during the 9M2021 while recording a net loan growth of 9.9% year-to-date. A notable improvement witnessed in private sector credit growth during Oct – Nov 2021 which exhibited an increased appetite for credit by corporate as well as individuals propels the gradual economic recovery, thereby it is expected ComBank to keep up the positive momentum in the loan book while maintaining the growth within a range of 11% – 12% in the coming years.”

“We have accounted for proposed surcharge tax of 25% (LKR 4.3Bn) through the retained earnings while no adjustment made in terms of the turnover levy of 2.5% (Social Security Contribution), assuming it can be passed on to the customers. Considering the gradual rise in risk free rate and thereby the increase in expected return, we have ascertained the fair value of COMB.N to reach LKR 115.0 (previous TP – LKR 125.0) in 2022E for a total return of 55.0% at the current market price, and the share is trading well below its current book value of LKR 139.0 with a PBV of 0.6x. COMB.X is valued at LKR 95.0 by 2022E assigning a 15% discount to the voting share.” First Capital said.



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APHNH aims to make Sri Lanka more competitive for healthcare investment

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Deputy Minister of Health and Mass Media, Dr. Hansaka Wijemuni addresses the audience

Sri Lanka private healthcare leaders recently pledged an action plan with timelines to address the practical priorities of Sri Lanka’s healthcare sector while making it more viable for local and foreign investments.

The Association of Private Hospitals and Nursing Homes (APHNH) has committed to converting recommendations from its first Healthcare Leadership Summit into a trackable outcome document with defined actions, responsibilities, and timelines, marking a shift from discussion to implementation in sector reform efforts.

The summit held on March 9 at Waters Edge, Colombo, brought together hospital leaders, policymakers, regulators, insurers, and international experts to address practical priorities for Sri Lanka’s healthcare sector.

A key outcome of the summit was APHNH’s plan to consolidate recommendations into a single, trackable charter that will outline specific actions, assign responsibilities, establish timelines, and provide periodic progress updates.

“Our objective is to bring the right decision-makers into one room and focus on what can be implemented, not only what can be discussed, ” said Raveen Wickremesinghe, President of APHNH. “We are committed to taking the inputs from today and converting them into a clear, trackable set of actions that strengthens quality, transparency and public confidence, while supporting national health priorities. “

The summit featured insights from Dr. Hafeez Rahman Padiyath, Dr. Hamdani Anver, and Chandana L. Aluthgama on scaling quality and operational discipline. A keynote and fireside discussion with Dr. Paiboon Eksangsri, President of the Private Hospital Association of Thailand, explored lessons from Thailand’s private healthcare development and conditions for making Sri Lanka more competitive for healthcare investment.

By Sanath Nanayakkare

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Atlas SipSavi Naththal Poronduwa records positive public participation, benefiting 10,000 students

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Atlas, Sri Lanka’s No. 1 learning brand, successfully concluded Atlas SipSavi Naththal Poronduwa, a national initiative that saw strong public participation in supporting children at risk of dropping out of school due to financial hardship. At a time when more than 22,000 Sri Lankan children leave school each year due to rising economic challenges, the initiative reinforced Atlas Sipsavi’s long-standing ‘No Child Left Behind’ promise by turning seasonal generosity into meaningful educational support.

The initiative reached 10,000 students, with beneficiary schools carefully selected to ensure support reached those most in need. The collected books were distributed to children at risk of dropping out, including those whose education had been disrupted by recent adverse weather, ensuring students had essential learning resources at the start of the new school term. Through its flagship Atlas SipSavi programme, the brand focused on improving access to education by providing essential learning tools, scholarships, and infrastructure to create better learning environments, bringing its purpose of ‘making learning fun’ to life in a meaningful way. As part of the initiative, the public was invited to donate schoolbooks, with each contribution matched one-for-one by Atlas. Donation boxes were placed at all Keells outlets island-wide and at Sarvodaya District Offices, making it easy for communities to take part.

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John Keells Logistics expands strategic engagement with CWIT through inter-terminal transport operations

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Representing JKLL: Lasitha Manchanayake: CEO, Dilum Liyanage: Snr. Manager - Transport Operations, Kavinda Jayasinghe: Manager - Operations and Randi Peiris: Asst. Manager - Commercial. Representing the John Keells Group: Zafir Hashim: President - Transportation, Plantations and IT Sectors and Asha Perera: CFO. Representing CWIT: Munish Kanwar: CEO, Iresh Siriwardena: COO, Devanshu Bhatia: Head of Techno Commercial, Madhuranga Wijesekara: In Charge - GATE Process, Sandun Niroshan: Duty Manager.

John Keells Logistics (Pvt) Ltd (JKLL), one of Sri Lanka’s leading third-party logistics solutions providers, has successfully expanded its operational engagement with Colombo West International Terminal (Private) Limited (CWIT), through inter-terminal transport services within the Port of Colombo. This enhanced engagement further strengthens CWIT’s efforts to improve operational efficiency, reliability, and scalability across terminal activities.

Inter-terminal transport plays a critical role in modern port operations, requiring high levels of coordination, precision, and operational discipline. JKLL’s appointment for ITT operations reflects CWIT’s confidence in the company’s demonstrated capabilities in managing complex transport operations within a high-throughput port environment.

The ITT operations are underpinned by JKLL’s technology-enabled logistics framework, incorporating real-time fleet tracking, performance monitoring systems, and data-driven operational planning. These capabilities provide enhanced visibility and control over transport movements, while ensuring compliance with established safety, productivity, and service quality standards.

The awarding of this engagement to JKLL is a testament to the successful implementation of the Inter-Terminal Vehicle (ITV) operations undertaken by John Keells Logistics at CWIT during the previous year. The ITV assignment was executed through structured operating procedures and disciplined service delivery, contributing to improved cargo movement, operational coordination, and service continuity within the terminal. The performance outcomes of the ITV operations provided the basis for the subsequent expansion of the partnership into ITT services.

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