Oct 24, 2013 (LBO) – Fitch Ratings has confirmed an ‘AAA(lka)’ rating Standard Chartered Bank’s Sri Lanka with a stable outlook. Fitch said SCB Sri Lanka’s loan book had contracted 7 percent in the first half of 2013 after expanding 18 percent in 2012 in line with a drop in lending seen in Sri Lankan banks. Loans had fallen to 43.5 percent of assets from 55.8 percent.
Sri Lanka is emerging from a balance of payments crisis, driven by a credit bubble which peaked in 2011, with unprecedented borrowings by state enterprises to subsidize energy.
Fitch said the bank’s asset quality is likely to remain strong with its focus on top tier local corporates. Corporate loans were 73 percent of loans. Non-performing loans were under 1 percent of loans in the first half of 2012.
There was an increase in non performing consumer loans including credit card advances which were 6 percent of loans.
The full statement is reproduced below:-
Fitch Affirms Standard Chartered Bank Sri Lanka Branch at ‘AAA(lka)’/Stable
Fitch Ratings-Colombo/Singapore-23 October 2013: Fitch Ratings has affirmed Standard Cha