Category: Banking and Finance

Nov 14, 2007 (LBO) – One of the youngest stockbrokering firms in Sri Lanka, which started as a unit of the First Capital Group is now operating as an independent entity as a with the group selling out its stake. First Capital Equities is formally changing its name to First Guardian Equities from today, the […]

Nov 12, 2007 (LBO) – Sri Lanka Seylan Bank group’s after tax profits increased 41.4 percent in the third quarter ending in September while turnover grew by 27.3 percent with a relatively flat loan growth. Group net profit after tax grew to 150.7 million rupees in the three months ended September 2007 from 106.6 million […]

Nov 12, 2007 (LBO) – Loan guarantees given by the Sri Lanka government to financial institutions shot up 45 percent in 2007 as the state took over credit risks of large power projects, newly published documents have revealed. Disclosures under Sri Lanka’s fiscal responsibility law shows that total loan guarantees given to financial institutions are […]

Nov 09, 2007 (LBO) – Fitch Sri Lanka has affirmed the National Savings Bank’s (NSB) ‘AAA(lka)’ rating with a stable outlook, but said high taxes and narrower margins were eroding profitability. “The rating reflects the full state ownership of the bank, low credit risk on its assets due to its significant exposure to government securities […]

Nov 08, 2007 (LBO) – Sri Lanka’s shaky budgets and complementary monetary policy are the biggest dangers to the banking system, an international rating agency has warned. Fitch Ratings says the ongoing internal war and even the December 2004 tsunami had little direct impact on the stability of Sri Lanka’s banking system. “However, the state’s […]

Nov 06, 2007 (LBO) – Fitch Ratings Lanka has confirmed Central Finance Company’s (CF) long-term rating of ‘A+ (lka)’ with a ‘stable’ outlook. CF has a 20 percent interest in Nations Trust Bank (‘A (lka)’), a licensed commercial bank. “CF’s rating factors in its strong financial profile and its dominant market position as the second-largest […]

Nov 05, 2007 (LBO) – Fitch Ratings says Sri Lanka’s finance companies are coming under stress from the current high interest rates and inflation, which increases risks especially in smaller finance companies. Updated/corrected, bailout numbers While most finance companies are well capitalized compared to their risk assets, 12 smaller firms out of 31 do not […]

Nov 05, 2007 (LBO) – Lanka Orix Leasing Company (LOLC) has grown 40.3 percent in the year to March 31 2007 compared to the rest of the industry which grew at 16 percent, Fitch Ratings said, confirming the firm’s ‘A(lka)’ rating. However Fitch said bad loans were rising and asked the leasing firm to “aggressively […]

Nov 02, 2007 (LBO) – Sri Lanka’s newest registered finance company, Swarnamahal Financial Services (SFS), kicked off this week offering a range of lending and deposit products. CEO Hafeez Rajudin says the company, a unit of the EAP group, will soon open two branches in Kandy and Colombo. In addition to hire purchase and leases, […]

Oct 20, 2007 (LBO) – Fitch Ratings Lanka has affirmed the National Long-term rating and Individual Rating of Bank of Ceylon (BOC) at ‘AA(lka)’ and ‘D/E’ respectively. It said in a statement the affirmation reflected “the bank’s systemic importance as the largest bank in Sri Lanka with 18.2% of the banking system assets, its relatively […]

Oct 16, 2007 (LBO) – As global markets are going through a painful hangover from a US housing bubble, the head of a ‘big four’ accounting firm says Asia will remain largely unaffected. Jim Turley: I don’t think there is going to be a lasting effect of this on compliance cost because institutions that are […]

Oct 15, 2007 (LBO) – People’s Merchant Bank (PMB) shares shot up 15.50 rupees to 55 rupees in Monday morning trading on the Colombo bourse as the firm said that Lanka Orix Leasing Company had increased its stake in the company. PMB said in a statement to the Colombo Stock Exchange that its share price […]