Growing Strong

Kris Canekeratne at LBR LBO Tech Conference

The banking sector is expected to post a 62 percent growth in profitability in 2002, on the back of lower interest rates and an economic revival.
However, HNB Stockbrokers say, the strong profit growth, is unlikely to continue at the same level in the near future. rn

rnBanking stocks will continue to build on this base and achieve record profits in FY 2003, which will allow them to outperform the market in the medium term, says Banking analysts, Hasitha Premaratne. rn

rnldblquote We feel that, fundamentals such as cost ratios, efficiency levels, leverage, the quality of the loan portfolio and scale issues will be the critical success factors of banking performance in the long run, and Sri Lankan banks are well positioned to benefit from these,
dblquote Premaratne said addressing a banking conference on Wednesday.rn

rnPremaratne made is observations at the launch of a 48-page research report, which analyses and compares five of the largest listed banks (selected based on the market capitalization