Business
ComBank to preserve positive growth momentum in its loan book
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.
MullenLowe Group Sri Lanka (MLG) announced the appointment of Sarah Nasry as Director & Chief Financial Officer, effective immediately.
In her new role, Sarah will lead both the Finance and Human Resources functions at MullenLowe Group Sri Lanka, playing a pivotal role in shaping the company’s financial strategy and people agenda. She holds a distinguished track record across multiple business disciplines, including Supply Chain, ICT, Administration, Corporate Communications, and CSR. Sarah brings a wealth of experience from her most recent position as General Manager – Finance & Business Partnering at Brandix, Sri Lanka’s leading apparel manufacturer.
Recognised for her strengths in business partnering, financial planning, and strategic decision-making, Sarah is also widely respected for nurturing inclusive, people-centric cultures that foster growth and high performance.
Thayalan Bartlett, Executive Chairman of MLG, commented, “Sarah’s appointment follows an extensive search for the right person to lead our finance division through the next phase of our journey. Her wide-ranging experience and strong leadership credentials give me every confidence that she will continue to strengthen the financial integrity and compliance standards we are known for, and the Board looks forward to working closely alongside her in this journey.”
Sarah also marks a significant milestone for the company, becoming the first female member of MLG’s Board of Directors. She will additionally serve on the MLG Executive Committee (ExCo), reinforcing the company’s commitment to diversity and inclusion at the leadership level.
Commenting on her appointment, Sarah said, “I am honoured and excited to join MullenLowe Group Sri Lanka and help steer the company into its next chapter. I look forward to collaborating with the talented team at MLG to drive financial strength, champion a people-first culture, and build on the company’s strong legacy of creativity and performance.”
Business
Sun Siyam Pasikudah Named Tripadvisor Travelers’ Choice Award Best of the Best Winner for 2025
Sun Siyam Pasikudah, a boutique luxury resort on Sri Lanka’s eastern coast, is thrilled to announce its recent win at the Tripadvisor’s Travelers’ Choice Awards Best of the Best for 2025, placing it among the top 10 percent of resorts worldwide. This accolade reflects the resort’s commitment to exceptional guest experiences, sustainable practices, and community engagement.
As the world’s largest travel guidance platform, Tripadvisor has unparalleled authority with travelers and diners. This award is based on genuine feedback from anyone in the community who has visited and left an authentic, first-hand review on Tripadvisor over a 12-month period, making it a valuable and trustworthy designation of travelers’ favorites.
Reopened in November 2023 after an extensive transformation, Sun Siyam Pasikudah offers 34 spacious one- and two-bedroom garden and beach pavilions, each featuring bold monochromatic interiors accented with golden tones. The redesign, led by Studio Sixty7, emphasizes a blend of contemporary elegance and local craftsmanship. The resort collaborated with local artisans, showcasing Sri Lanka’s rich talent and cultural heritage.
‘‘We are thrilled to being recognized on par with some of the world’s best resorts. Under just two years since our reopening, this achievement couldn’t be possible with the tremendous effort and support of our world-class team and our guests that keep coming for the unique experiences we offer. We are proud to contribute to Sri Lanka, a destination that is on every traveler’s go-to list,’ said its General Manager, Arshed Refai who has been with Sun Siyam Resorts for over a decade.
OTTO Bathware has received Sri Lanka Standards (SLS) certification from the Sri Lanka Standards Institution (SLSI). This certification confirms that OTTO’s sanitaryware meets the highest national standards for safety, durability, and performance. With over 30 years of experience, OTTO Bathware operates under the ADI Group (Art Decoration International Pvt. Ltd.- www.ottobathware.com) and runs a modern 435,000square feet manufacturing facility in Bandaragama. The company has grown to become; South-Asia’s largest decorative ceramic manufacturer/ exporter, Sri Lanka’s second-largest sanitaryware producer, supplying to over 500 retailers island-wide.
“We’re proud to offer sanitaryware that meets national safety and quality standards. We encourage all Sri Lankans to look beyond the price tag and choose products that are certified, tested, and built to last.” said its Chairman, S. H. B. Karunarathne.
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