Citizens Development Business Finance PLC (CDB) crossed the Rs 1Bn milestone in After Tax Profit for the second consecutive year in the FY 2016/17, despite an increasingly competitive and volatile operating environment.

Demonstrating strong and resilient results across the board, the Balance Sheet for yearend reflected a growth of 7%, recording Rs. 53.9 Bn. CDB’s revenue detailed at Rs. 8.6 Bn reflects a growth of 15%, while interest income grew by 14% to Rs 7,587 Mn.  Interest expenses increased by 31% to Rs 4,699 Mn.  This resulted in a decline of 6% in net interest income amidst a rising interest rate scenario, which saw a posting of Rs 2,888 Mn. Net Operating income moved upwards to Rs 3.7 Bn, a growth of 5% mainly attributed to a reduction of Rs 173 Mn in impairment charges and other credit losses.

The Loan Book grew by 12% to stand at Rs 43.2 Bn, while the deposit portfolio reflects a growth of 6%, reaching to Rs 32.6 Bn. Growth in lending was supported by growth in the share of non-auto lending, which represented 7% of total lending compared to 5% last year. During the period under review, the gross NPL ratio further improved to 3.08%, compared to last year’s 3.62%.  Similarly Net NPL improved to 1.05% from 1.56%.

Capital Funds increased by 24% notching Rs 6.2 Bn, while ROE is detailed at 17.83%, ROA 1.93%, EPS at Rs. 18.53 and Net Asset Value per Share at Rs. 115.



Capital adequacy ratios for Tier I and Tier II stands at 12.32% and 14.12% respectively, compared to the regulatory required level of 5% and 10%. The liquidity ratio too echoed similar trends of being above regulatory requirements, displayed at 13.03%.

CDB’s subsidiary too proved its mettle this year. Unisons Capital Leasing Ltd (UCL), CDB’s 90.38% owned specialized leasing subsidiary acquired in October 2014, performed impressively in the 2016/17 financial year. UCL reported Rs 20 Mn in Profit After Tax and expanded its balance sheet to an impressive Rs 693 Mn, from Rs 370 Mn last year.

In its bid to give stakeholders more accessibility, CDB expanded its distribution network by adding seven new branches completing 69 branches.

CDB has embarked on an ambitious technology drive to maximize market opportunities with the planned launch of CDBiNet in the 1Q of 2017/18.  An online omni channel transactional platform with a 360 degree application for customer portfolios, CDBiNet facilitates management and maintenance of personal portfolios including online account opening facilities, online fund transfers to any bank via the Common Electronic Fund Transfer System (CEFTS) and online utility bill settlements.

As a responsible corporate citizen, CDB which was certified as the first Carbon Verified Financial Institution in South Asia by the Sri Lanka Carbon Fund, has always been conscious of its sustainability ethos, while enhancing its economic returns.  While environmental initiatives do have significant focus, CDB added its prowess to child health by collaborating with the Sri Lanka Association for Child Development to launch a national autism awareness programme. Other ongoing CSR initiatives include CDB Pariganaka Piyasa, CDB Sisudiri Scholarship Scheme and CDB Hithawathkam, all constructed on a platform of sustainable knowledge gain.

CDB will continue its emphasis on inclusive economic development.  Being a net lender to the rural economy and providing access to finance to the base of the pyramid markets, it is astutely growing the urban funding and rural lending approach.  CDB has also set two tangible goals – to double its balance sheet by 2020 and have the lowest possible Green House Gas Emissions (GHGs) within the financial services sector.

CDB has continued to reach formidable heights emphasizing on constructing and nurturing a sustainable business, believing strongly on the ethos of compliance, transparency and ethics. This has been well evidenced in CDB wearing the laurels as Runner Up at the Ceylon Chamber’s Sustainability Awards, gaining a Sector Gold for National Business Excellence, a Silver for CSR and a Silver in service excellence in the Service Brand of the Year from SLIM Brand Excellence 2016 and Silver for National HR Excellence in 2016/17.

- Revenue up 10.3% YoY to Rs. 19.2 billion
- PAT improves sharply by 33.1% YoY to Rs. 1.6 billion
- Healthcare revenue up 9.8% YoY to Rs 7.9 billion revenue
- Agri revenue grew 3.2% YoY to Rs. 6.5 billion
- FMCG revenue grew 22.5% YoY to Rs. 4.2 billion

May 31, 2017: Sunshine Holdings PLC posted consolidated revenues of Rs. 19.2 billion for the 2016/17 financial year (FY16/17), up 10.3% Year-on-Year (YoY) leading to an improved Profit After Tax (PAT) of Rs. 1.6 billion, reflecting a 33.1% YoY improvement over the previous financial year.

Profitability was bolstered by drastic improvements in the Group’s Agri-business which recorded a 3.2% YoY increase in revenue up to Rs. 6.5 billion despite a 5.1% YoY contraction in Tea revenue in the wake of unfavorable weather conditions during the year. The sector’s Tea Crop was affected by bad weather, even as the company continues to focus on a concerted strategy to grow quality teas to offset reductions in volumes.

“It has been a year of notable challenges in key sectors however we are pleased to note that the Sunshine Group continues to display a resilient and entrepreneurial spirit in the face of such difficulties. During the year, our subsidiaries were able to generate significant growth, particularly as a result of some of our more recent innovations as seen in the performance of our palm oil business and our popular Healthguard franchise,” Sunshine Holdings Group Managing Director Vish Govindasamy stated.

Notably, the Palm Oil sub sector reported an increase of 43.8% YoY for FY16/17 with Palm Oil volumes rising 18.2% YoY. The company managed to obtain a higher price for its CPO during FY16/17, which positively contributed to both top line and bottom line of the Agri sector.

While escalating tea prices helped support a notable recovery in the Group’s tea sub-sector, they also resulted in increased pressure on FMCG margins during the second half of the year. Nevertheless, FMCG revenue increased by 22.5% YoY on the back of both volume and price growth, closing the year with PAT of Rs. 275 million, down 34.9% YoY.
Moving forward the group’s FMCG brand anticipated improved potential in the sector resulting from the scaling up of the ‘Zesta Connoisseur’ brand across Shangri-La properties worldwide and other growth-oriented strategies designed to further consolidate the brand both locally and internationally.

Meanwhile, the imposition of pharmaceutical drug price controls on 48 separate molecules by the Ministry of Health over the last year continued to generate negative ramifications for Sunshine’s Healthcare segment. While remaining as the largest contributor to total group revenue, the segment recorded a 9.8% YoY increase driven by strong growth in retail business.

However the Pharma sub-segment which represents 64% of Healthcare revenue grew at only 6% YoY, due to the impact of reduced prices leading to a sharp 36.9% YoY contraction in PAT down to Rs. 198 million. The company’s Pharma segment is the 2nd largest player in the country with 11.3% share of the market.

Moving forward the group anticipates weaker consumer activity during the in 1HFY18, as increased tax burden weighs on disposable incomes and increased market volatility as a result of severe adverse weather conditions. Despite these conditions, the Group is gearing for above market growth in all business segments as a result of proactive strategies targeting new growth opportunities.

About Sunshine Holdings
Sunshine Holdings PLC is a diversified conglomerate with interests in Healthcare, Plantations, FMCG, Packaging and Renewable Energy. The Group with revenue exceeding US $120 million is listed on the Colombo Stock Exchange. Beginning with the healthcare business in 1967, the group has built strong businesses over the last five decades, including partnering with the Tata Group in 1992 to form a joint venture in Plantations. Group companies include Sunshine Healthcare Lanka, Watawala Plantations PLC, Watawala Tea Ceylon Ltd, Sunshine Packaging and Sunshine Energy.

- Fourth quarter fiscal 2017 revenue of $226.0 million increased 4.0% sequentially and 31.5% year-over-year.
- Fourth quarter fiscal 2017 diluted EPS was $0.34 on a GAAP basis, and $0.43 on a non-GAAP basis.
- Fiscal year 2017 revenue of $858.7 million increased 43.0% year-over-year.
- Fiscal year 2017 diluted EPS was $0.39 on a GAAP basis, and $1.25 on a non-GAAP basis.
- Used proceeds from the strategic Orogen investment, which closed on May 3, 2017, to pay down $81 million of debt and to establish a $30 million stock buyback program.

Westborough, MA – Virtusa Corporation (NASDAQ GS: VRTU), a global business consulting and IT outsourcing company that accelerates business outcomes for its clients, reported consolidated financial results for the fourth quarter and fiscal year ended March 31, 2017.

Fourth Quarter Fiscal 2017 Consolidated Financial Results
Revenue for the fourth quarter of fiscal 2017 was $226.0 million, an increase of 4.0% sequentially and 31.5% year-over-year.  On a constant currency basis, (1) fourth quarter revenue increased 4.1% sequentially and 34.7% year-over-year.  

Virtusa reported GAAP income from operations of $10.2 million for the fourth quarter of fiscal 2017, an increase from $6.5 million for the third quarter of fiscal 2017 and $5.5 million for the fourth quarter of fiscal 2016. Fourth quarter fiscal 2017 GAAP income from operations includes approximately $0.5 million of restructuring charges related to certain cost savings initiatives.

On a GAAP basis, net income attributable to common shareholders was $10.5 million for the fourth quarter of fiscal 2017, or $0.34 per diluted share, compared to $4.4 million, or $0.15 per diluted share, for the third quarter of fiscal 2017, and $12.3 million, or $0.41 per diluted share, for the fourth quarter of fiscal 2016. Fourth quarter fiscal 2017 GAAP net income includes the impact of the aforementioned restructuring charges related to certain cost savings initiatives, net of tax. 

Balance Sheet and Cash Flow
The Company ended fiscal year 2017 with $237.0 million of cash, cash equivalents, and short-term and long-term investments (2).  Cash flow from operations was $0.6 million for the fourth quarter and $22.2 million for the fiscal year 2017.

Management Commentary
Kris Canekeratne, Virtusa’s Chairman and CEO, stated, “We made excellent progress against our FY 2017 strategic goals. Most notably, we are pleased with the integration of Polaris and our ability to greatly expand our addressable market in BFSI, Communications & Technology and Media & Information. We are very pleased with the number of leading enterprises that rely on Virtusa for their most strategic end-to-end digital transformation programs. Looking to fiscal 2018, we will intensify our digital offerings and strengthen our leadership position in this rapidly growing area.  We are delighted that Vikram S. Pandit joined our board and the strategic value he brings. Additionally, we are enthusiastic about leveraging Orogen's and Atairos’ network to advance our growth strategy by bringing our digital offerings to enterprises in their network.”

Ranjan Kalia, Chief Financial Officer, said, “We delivered strong sequential revenue growth and operating margin accretion in the fourth quarter. Our Q4 non-GAAP EPS was below the midpoint of our guidance range primarily due to a shift forward of certain expenses in our cost of sales. Looking to fiscal 2018, we expect to deliver above-industry revenue growth as well as continued margin accretion even after absorbing INR headwinds of approximately 45 basis points. Additionally, due to the recently completed strategic investment by the Orogen group, we have strengthened our balance sheet by increasing our net cash position and expect to return capital to shareholders through our share buyback program. ”

Financial Outlook
Virtusa management provided the following current financial guidance:

- First quarter fiscal 2018 revenue is expected to be in the range of $222.5 to $227.5 million. GAAP diluted EPS is expected to be in the range of $0.07 to $0.13. Non-GAAP diluted EPS is expected to be in the range of $0.24 to $0.30.

- Fiscal year 2018 revenue is expected to be in the range of $920.0 to $950.0 million. GAAP diluted EPS is expected to be in the range of $0.81 to $1.07. Non-GAAP diluted EPS is expected to be in the range of $1.42 to $1.66.

In accordance with US GAAP, Virtusa will be applying the if-converted method to its newly issued convertible preferred shares when reporting its Fiscal Year 2018 results. The if-converted method is used to calculate the share impact of convertible securities.  Under this method, only in-the-money convertible securities are considered when calculating EPS.  EPS guidance has been calculated on a GAAP and Non-GAAP basis as follows:


- GAAP EPS guidance was calculated under the assumption that these convertible securities will remain out-of-the-money during fiscal year 2018.  Hence, when calculating EPS, dividends paid on the convertible preferred shares have been deducted from net income attributable to common stockholders and the convertible preferred shares have been excluded from weighted average shares outstanding.

- Non-GAAP EPS guidance was calculated by excluding the impact of dividends paid on the convertible preferred shares from net income attributable to common stockholders and including the impact of the convertible preferred shares in weighted average shares outstanding, as the Company expects these convertible preferred shares to eventually be converted into shares of common stock.

The Company’s first quarter and fiscal year 2018 diluted GAAP EPS estimates are based on average share counts of approximately 30.7 million and 30.8 million, respectively, (assuming no further exercises of stock-based awards). The Company’s first quarter and fiscal year 2018 diluted Non-GAAP EPS estimates are based on average share counts of approximately 32.6 million and 33.5 million, respectively, (assuming no further exercises of stock-based awards). GAAP and Non-GAAP average share counts assume a stock price of $31.75, which was derived from the average closing price of the Company’s stock over the five trading days ended on May 11, 2017.  Deviations from this stock price may cause actual diluted EPS to vary based on share dilution from Virtusa’s stock options and stock appreciation rights. 

Allianz Lanka continued to maintain its growth momentum across its life and general insurance businesses through Q1 2017.

The Non-Life company, Allianz Insurance Lanka Ltd., recorded 33% YoY growth in Gross Written Premium (GWP) at Rs.1.493 billion during the period under review, with a Profit After Tax (PAT) of Rs. 13 million despite expenditure on expansion.

The Life company, Allianz Life Insurance Lanka Ltd., registered a 7% YoY growth in GWP, ending the quarter at Rs.277 million with an impressive growth of 23% in annualized new business fueled by Universal Life Products which contributed Rs. 174 million. The PAT stood at Rs.24 million which marked a continuation of making profits since last quarter 2016.

Commenting on the company's performance during the quarter, Surekha Alles, Chief Executive Officer - Allianz Lanka, said, "I'm excited to report that we have recorded a positive start to FY 2017 with both the life and non-life businesses registering steady growth. Our efforts to expand our retail network around the country were instrumental in helping Allianz Insurance Lanka Limited register impressive growth in GWP. This together with the uniqueness of our products has helped us gain the confidence of customers and grow the business. The parent company Allianz SE's capital infusion of Rs.405 million too contributed to the non-life business' growth numbers. Allianz Life Insurance Lanka Limited was able to consolidate its market position with a focus on recruitment and new business creation under its new leadership in sales. Energized by these results, we look forward to continuing to grow our business through FY 2017."

Prevailing high interest rates together with the company's prudent investment strategy helped drive 70% and 17% growth in investment income in the non-life and life businesses, respectively. The non-life business' investment portfolio grew by 23% YoY to Rs.2.301 billion while the life business' investment portfolio grew by 34% YoY to Rs.2,105 million.

Allianz Insurance Lanka Ltd. and Allianz Life Insurance Lanka Ltd., known together as Allianz Lanka, are fully-owned subsidiaries of Allianz SE Germany, a world leader in integrated financial services. Having started out as a Greenfield operation in 2005, it has emerged as one of the fastest growing insurance service providers in Sri Lanka. The company prides on supporting its clients' business strategy by understanding their risk profile and needs, and providing individual solutions from its world class portfolio of products and services. Around the world, over 140,000 Allianz employees serve some 86.3 million retail and corporate customers in about 70 countries, who place their trust on the knowledge, global presence, financial strength and solidity of Allianz to support them in their moment of truth.

Dipped Products Group posted Rs. 24 billion Turnover during the financial year 2016-17, 11 percent increase from a year ago. Group Profit Before Tax (PBT) for the year was Rs. 1.06 billion, 53 percent increase from Rs. 691 million recorded for the previous year.

The Hand Protection segment contributed Rs. 14 billion to revenue, 12 percent higher than the previous year. Contribution to PBT from the segment was at Rs. 785 million, 32 percent increase from a year ago. The Hand Protection sector profit was impacted by higher latex prices prevailed in the fourth quarter.

The Plantation segment reported Rs. 10 billion in revenue, a 7 percent increase from the previous year and a PBT of Rs. 272 million, compared to Rs. 152 million posted for the previous year. Plantation segment performance was affected by lower crop, mainly arising from adverse weather conditions and restrictions on weedicides.

Established in 1976, Dipped Products is one of the leading non-medical rubber glove manufacturers in the world, and accounts for a 5 percent share of the global market. The company’s products now reach 68 countries.

The Board of Directors of Dipped Products PLC comprises Messrs. Mohan Pandithage (Chairman), Dr. K. I. M. Ranasoma (Managing Director), F. Mohideen, S. C. Ganegoda, Dhammika Perera, M. Bottino, S. Rajapakse, N. A. R. R. S Nanayakkara, S. P. Peiris, K.D.G. Gunaratne, H.S.R. Kariyawasan and S.M. Shaikh.

- Group PBT grows by 18% to Rs 5.8 Bn
- Group PAT surpasses Rs 4 Bn
- Bank Cost to income improves to 41.9% by 372 bps yoy

HNB continued its growth momentum during the first quarter of 2017 with Group PAT growing by 16.4% yoy to surpass Rs 4 Bn while Bank PAT grew by 18.1% yoy to be recorded at Rs 3.65 Bn.

Growth in advances coupled with the rise in interest rates enabled interest income growth in excess of 45% yoy to Rs 22.6 Bn. While interest expenses were also higher on account of funds moving into higher yielding deposits, the Bank’s substantial CASA base of Rs 228 Bn cushioned the impact on interest costs partly. As a result, the Net Interest income grew by 25.9% to Rs 9.3 Bn during the first quarter of 2017.

Net fee and commission income also performed well, supplementing core banking performance with a contribution of approximately Rs 2 Bn which is a 15.9% growth from Q1 2016. Credit Cards, Trade Finance and Current Account services contributed strongly towards the growth.

The Bank’s asset quality remained strong with the NPA ratio being at 1.85% as at the end of the first quarter of 2017, compared to the industry average of 2.7%. The provision coverage of the Bank improved from 73.4% in Q1 2016 to 79.5% in March 2017.
Operational excellence initiatives continued to yield transformational benefits for the Bank which improved its cost to income ratio by 372 bps yoy to 41.9%. Operating profits before VAT and Taxes grew by 22.1% yoy to Rs 6.35 Bn. Charges for VAT and NBT increased by 52.5% as a direct result of the revision in the rate of VAT from 11% to 15%. Subsequently the Bank’s PBT grew by 16.5% to Rs 5.1 Bn. The PAT of Rs 3.65 Bn represented a ROA of 1.7% and a ROE of 18.8%.

The Bank also reported efficient balance sheet growth, boosting its asset base by 18.7% yoy to surpass Rs 900 Bn in total assets. The Bank’s deposit base increased by Rs 107.9 Bn over the 12 month period to March 2017, to finance the Rs 101 Bn growth in advances during the same period.

Commenting on the first quarter performance MD/CEO of HNB Mr. Jonathan Alles stated that “We are pleased to have begun the year on a strong note and carried on in the same vein from where we ended 2016. The first quarter of 2017 saw us further strengthening our presence in the digital space. Following the implementation of our payment and cash management and distributor financing solutions last year, we opened a few digital branches during 2017. We will forge ahead with our investments in technology while maintaining our focus on service and operational excellence." Mr. Alles further added that “The dedication and commitment of our competent team has been the cornerstone of our success. As such we will continue to drive the best and most employee centric corporate culture at HNB, which we consider to be of paramount importance”.

HNB Group performance was on par with that of the Bank with Group assets growing by 19.3% to Rs 945.9 Bn. All group companies performed well to compliment the Bank’s performance. Group PBT grew by 18% to Rs 5.8 Bn while the Rs 4 Bn in Group PAT represented a ROA of 1.8%. Profit attributable to the equity holders of the parent grew by 15.9% to Rs 3.8 Bn and resulted in generating a ROE of 16.6%.

HNB continued to win many accolades with the ‘Asian Banker’ adjudging it to be the ‘Best Retail Bank in Sri Lanka’ for the ninth time in 2017, while also recognizing the Bank with the ‘Best Micro Finance Product’ award for the Asia Pacific Region. The Bank was also awarded by ‘Asiamoney’ in 2017 as the ‘Best Bank for SME’ and the ‘Best Bank for CSR’ in Sri Lanka. Locally, HNB won the Runners up award in the Banking category at the Association of Chartered Certified Accountants (ACCA) Sustainability Reporting Awards 2017 held in February.

HNB is the first local Bank in Sri Lanka to receive an international rating on par with the sovereign from Moody’s Investor Services while maintaining a national long term rating of AA - (lka) from Fitch Ratings Lanka Ltd.

Sri Lanka Telecom Group released its results for the 1st quarter 2017. The group comprises of 7 subsidiaries and the Holding Company.

During the 1st quarter 2017 the group reported Rs. 18.7 billion, with a revenue of 1.4% year on year growth. Tax changes made by the government had an adverse impact on the Group’s revenue growth. The reduction in revenue growth had an impact on profitability as well. The Group’s operating expenditure increased by 2.7% to Rs. 13.1 billion from LKR 12.7 billion in line with business expansions and external factors. The impact caused by foreign currency translation losses continued due to the depreciation of the LKR against the USD. During the quarter there was a foreign exchange loss of Rs. 364 million. Owing to the above reasons and increase of depreciation by 19.7% year on year to Rs. 3.9 billion, the Profit Before tax and Profit for the period dipped to Rs. 1.8 billion and Rs. 1.5 billion respectively.

The operating revenue of the holding company increased by 3.6% to Rs. 11.2 billion despite the external challenges as explained above. However, the increase of depreciation to Rs. 2.5 billion by 30% year on year and increase of foreign currency translation losses to Rs. 257 million from Rs. 64 million of same period of the last year the Profit Before tax and Profit for the period dipped to Rs. 627 million and Rs. 545 million respectively.

As a pioneer in the ICT industry and as part of a market that shifts very quickly, the SLT Assemblage continuously strives to remain technologically innovative. As such the Group continues to accelerate multiple projects, especially the long-term evolution (LTE) project and the fibre to the home (FTTH) under which was rolled-out 1,000 LTE base stations and 100,000 fibre ports respectively. A significant addition to the mobile industry is underway with Mobitel’s forthcoming 4G expansion. The Group remained focused on strategic investments to enhance the lifestyle of the nation and as well as continue to gear Sri Lankan lives for the future.

The SLT Group is devising ICT-reinforced facilities for the mega investment zones of the Colombo International Financial City and the Megapolis Project. Consequently, the Group expects to be well-prepared to handle any and all foreign direct investments (FDIs) coming into the respective zones.

The rise in economic development of Sri Lanka will drive an influx of investors and projects into the country. SLT is fully-equipped to meet these with cutting edge communications and infrastructure solutions. The SLT Group foresees equally exciting prospects in the Megapolis Project and its associated ventures.

 

Amãna Bank recorded a successful first quarter, in which the Bank achieved a Profit Before Tax of Rs 92.5 million, reflecting a remarkable YoY growth of 83% from the corresponding period of 2016. The Bank’s Profit After Tax for the same period grew by 74% to reach Rs 66.6 million.

Growing its Financing Income by 41% YoY to achieve Rs 1.2 billion, the Bank continued its growth momentum in core banking operations during the quarter, leveraging on its strategic focus of being primarily an SME and Retail Bank. Net Financing Income during the first three months grew to Rs 562.4 million, corresponding to a YoY growth of 37%, while its Net Fee and Commission Income grew by 22% to record Rs 57.9 million.  Net Operating Income of the Bank reached Rs 679.4 million reflecting a healthy growth of 19.3% from Q1 2016. The increase in Total Operating Expenses was maintained within 5% when compared with Q1 2016.

During the first three months, the Bank grew its Total Assets to read at Rs 57.0 billion. The demand for the Bank’s array of products and services continued to grow, which prompted the upward movement of its Deposits and Advances portfolio to close at Rs 49.1 billion and Rs 40.0 billion respectively. The Bank continued to maintain a Gross Non-Performing Advances Ratio of 0.86%, considered to be the lowest in the industry.

The Bank recently announced a Rights Issue to support its growth and comply with the regulatory capital requirements. Subject to CSE and shareholder approval, the Bank plans to issue 1,250,695,267 new shares at Rs 3.80 per share in a ratio of one new ordinary share for every one ordinary share held. Along with the participation of identified foreign and local investors, full subscription to the issue will result in the Bank’s Stated Capital surpassing Rs 10 billion, thereby crossing the regulatory capital requirement set for 2018 well in advance.

The Bank’s Chief Executive Officer Mohamed Azmeer said “I am happy to note that in line with its 5 year Strategic Plan, the Bank has been successful in maintaining its upward momentum. This reflects the growing acceptance of our people friendly banking model. I am confident the numbers we have achieved will add impetus to our forthcoming rights issue, which in turn, will support the future expansion of business. I wish to thank our valued customers for their loyalty and continued patronage, as well as our team for their tenacity and commitment”.

Amãna Bank is the country’s first Licensed Commercial Bank to operate in complete harmony with the globally growing non-interest based banking model. With the mission of Enabling Growth and Enriching Lives, the Bank reaches out to its customers through a growing network of 28 branches and 3800+ ATM access points and has introduced a bouquet of customer conveniences such as Internet & Mobile Banking, Debit Card with SMS alerts, Saturday Banking, Extended Banking Hours, 24x7 Cash Deposit Machines  and Banking Units Exclusively for Ladies.

Fitch Ratings, in October 2016, affirmed the Bank’s National Long Term Rating of BB(lka) with a Stable Outlook. The Bank was recognized as the Best ‘Up-and-Comer’ Islamic Bank of the World by ‘Global Finance Magazine’ at the 18th Annual World’s Best Banks Award Ceremony held in Washington DC, USA. The Bank was also bestowed the coveted title ‘Islamic Finance Entity of the Year 2016’ at the inaugural Islamic Finance Forum of South Asia Awards Ceremony.

Powered by the stability and support of its strategic shareholders including, Bank Islam Malaysia Berhad, AB Bank in Bangladesh and The Islamic Development Bank based in Saudi Arabia, Amãna Bank is making strong inroads within the Sri Lankan banking industry and is focused on capitalizing the growing market potential for its unique banking model across the country.

Colombo. Wednesday 26 April 2017. Seylan Bank made a steady start in 2017 by posting impressive results for Q1 with a Profit after Tax of Rs. 866 Million in the backdrop of uncertain market conditions.

The Bank increased its Net Interest Income and recorded a robust growth of 20.97% in spite of the mounting pressure on the margins due to rising cost of funds. However Net interest Margin contracted from 4.19% in 2016 to 3.92% in 1Q 2017 due to cost of deposits increasing at a faster rate than the re-pricing of loans.

Net fee and commission income witnessed a healthy growth of 24.94% to reach Rs. 869 Million in 1Q 2017 as compared to Rs. 695 Million for the comparative period. This was mainly attributed from core banking related business such as card-related income, trade finance related fee income and fees from guarantees, remittances etc. The Bank will continue to look towards enhancing its fee-based income from products such as debit and credit cards and trade-related products.

Other operating income comprising net gains from trading, gains from financial investments, gains on foreign exchange and other income reported a net gain of Rs. 299 Million compared to loss of Rs. 68 Million in 1Q 2016.

Impairment charges for loans and other losses for the period was a charge of Rs. 346 Million as compared to a charge of Rs. 84 Million in Q1 2016. Individual impairment charges of Rs. 253 Million represent specific provisions made for few credit exposures. The Bank has a stringent recovery process in place to minimise any significant losses that may arise from such loan facilities.

Total expenses recorded an increase of 19.03% from 2,273 Million in the 1Q of the previous year to Rs. 2,705 Million during the period under review. Expenses growth was witnessed by investments made in employees, technology, upgrading and refurbishment of branches etc.

Cost efficiency and productivity has taken a predominant role in the Bank’s day-to-day operations. The Bank continues to focus on cost initiatives coupled with implementation of lean concepts and exploring ways of inculcating a culture of working smarter across all the functions by the employees.

The Bank’s loans and advances portfolio recorded a marginal growth of 2.76% to 242,531 Million during the 1Q 2017 amidst rising interest rates. The growth in credit was driven primarily by Term Loans, Overdrafts and Credit Cards.

The overall deposit base recorded a marginal growth of 0.24% from Rs.273,456 Million by the corresponding quarter last year to 274,120 Million by 1Q 2017 and a shift from low cost CASA to term deposits was noted which is partly due to increase in interest rates.

As a result the Bank’s CASA ratio (Current and Savings) stood at 31.23% and total time deposits increased from 67.48% by end of year 2016 to 68.77% as at 31st March 2017 of the total deposits base. An attractive Avurudu campaign were launched for ‘Avurudu Thanpathu’ deposits and Tikiri Account holders to grow the existing balances and acquire new customers.

As a result of the noteworthy financial performance during the first quarter, the Bank’s Earning per Share (EPS) grew by 20.2% to Rs. 2.51. The Bank recorded a Return on Average Assets (ROAA) of 1.39% and Return on Equity (ROE) of 12.37%. The Bank’s Net Asset Value per share as at 31st March 2017 was Rs. 79.74 (Group Rs.83.12).

Seylan Bank remained soundly capitalised, with the key capital adequacy ratios well above the regulatory minimum requirements and recorded 10.39% as the core capital adequacy ratio and 12.63% as the total capital adequacy ratio.

The Bank recognises education as one of the building blocks of the nation and considers it as a priority area for its CSR activities. Under the ‘Seylan Pahasara’ project the Bank opened 8 libraries during the first quarter which add up to total of 128 libraries in rural areas, especially in under privileged schools with the aim of nurturing young minds and to educate them so that they contribute to the nation’s development.

The Bank is currently working on opening libraries in areas such as Beliatta, Gampola, Jaffna, Kalmunai, Nelliady and Trincomalee covering all districts and raising the number to 250 by the year 2019.

The Bank is committed to expanding its branch network in order to provide its customers with the best possible service at all times. The Bank network currently comprises 166 Banking Centres and 203 ATMs. Keeping in line with the strategy of expanding customer touch points to enhance accessibility and convenience, the Bank has projected to open 10 branches during 2017 in key areas in the country.

In October 2016 Fitch reviewed the Bank’s rating and reaffirmed the Bank’s rating at ‘A-lka’ with a ‘stable ‘outlook in January 2017.  

The Bank has embarked on an ambitious growth four year strategy (2017-2020). As part of the implementation of the strategy, the Bank will continue to grow through aggressive channel expansion, innovative and personalised product propositions and services to fulfill the diverse clientele, promote cost initiatives by streamlined business processes during the rest of the year.

Oman Air has recently published its annual report for 2016 that reflects the accomplishments achieved by the company, in addition to the outstanding efforts and the successful approach towards the development of all aspects of its operations in order to continue the company's growth and successes. Oman Air's business operations have witnessed remarkable growth during 2016.

Reviewing the annual report on behalf of the Board of Directors of Oman Air during The Extraordinary General Meeting and the 35th Ordinary General meeting in Muscat, His Excellency Darwish Bin Ismail Bin Ali Al Balushi, Chairman of Oman Air's Board of Directors, highlighted some of the achievements of 2016, which are as follows:

- Fleet expanded to 47 aircraft.
- Increase in the seat factor up to 20%
- Increase in the number of passengers to 7.7 million, or 21%
- Launch of Oman Air Flight Training Centre (OAFTC)
- Freight operations increased to 159,618 tonnes
- One million extra meals produced by Oman Air Catering Services

Further fleet expansion
His Excellency Darwish Bin Ismail Al Balushi said, "2016 was a year of both change and consolidation for Oman Air. Oman Air has continued its ambitious programme of expansion in 2016 with the introduction of four brand new Boeing 737-800s joining the Oman Air fleet. The carrier has operated B737s for many years and the aircraft provide the backbone of the airline’s long and medium haul fleet.  We have continued to upgrade our Airbus fleet.  The first Airbus 330 to benefit from a comprehensive retrofit landed at Muscat International Airport from Paris in October 2016. This reflects our commitment to continue to invest in our award winning on board experience.”


He added that the previous A330 interiors attracted enormous international acclaim when they were first unveiled in 2009 and the new A330 interiors surpass those high standards and customers are already delighted with the results. With the addition of the new Boeing 737 – 800, Oman Air’s fleet stands at 47. Currently Oman Air’s fleet consists of four Boeing 787 Dreamliners, six Airbus 330-300s, four Airbus 330-200s, five Boeing 737-900s, 23 Boeing 737-800, one Boeing 737-700 and four Embraer 175s. Three more Boeing 737 – 800s are scheduled to join the fleet and this year, Oman Air will be unveiling new B787-9 Dreamliners and revamping the existing Airbus fleet.

Significant operational results
“The results speak for themselves. The number of available seat kilometres grew to 24.8 billion, an increase of 20%. Oman Air’s capacity has increased significantly over the last year recording an increase in flight movements by more than 4000 flights to nearly 51,952 flights, an increase of 9% compared with 2015. The number of round trips Oman Air offered in 2016 rose to 30,978 trips from the previous year’s 28,270 trips.

As a result of the increased capacity, Oman Air experienced a huge 21% increase in passenger numbers with over 7.7 million passengers travelling with the airline in 2016, compared to 6.4 million passengers in 2015. While the fluctuating oil prices continue to affect the global economic outlook in general negatively, Oman Air’s revenues have increased during 2016 to OMR 472 million, an increase of 1% on 2015,” His Excellency Darwish Bin Ismail Al Balushi said.

He also said that among the developments in 2016 are: the introduction of a double daily service to London Heathrow; from five times a week, to daily flights to Paris and increased frequencies on other European routes. The other recent additions to our network include, Manila, Jakarta, Singapore, Goa, Dhaka and Mashhad. The introduction of Guangzhou, China and Najaf, Iraq were the other major milestones of 2016. We also announced the start of our second destination in the UK with the new Muscat to Manchester daily service in May 2017.

Priority to man-power development
“Oman Air is continuing with its broad human resources strategy of appreciating the skills, abilities, commitment and contributions of all staff, regardless of their backgrounds.  The company has worked hard to increase the employment of Omani nationals and now over two thirds of the workforce originates from Oman.
2016 also saw a move to put Oman Air at the forefront of pilot and cabin crew training with the launch of the Oman Air Flight Training Centre (OAFTC) in October. It is a state-of-the-art facility that is the first of its kind in the Sultanate of Oman,” His Excellency Darwish Bin Ismail Al Balushi said.

Other sectors, sustained growth
His Excellency Darwish Bin Ismail Al Balushi noted that Oman Air continues to excel in other areas of the business. The amount of cargo that Oman Air handled in 2016 increased from 138,972 tonnes to approaching 159,618 tonnes. Our Catering Services Division has won several new contracts including a three and a half year contract with British Airways. In the past year Oman Air Catering Services produced an extra one million meals than were originally budgeted for, increasing productivity without compromising on quality. Extensive work continues to improve the efficiency and effectiveness of every area of the business. Oman Air’s engineering division is preparing to move to a much bigger facility, productivity can only increase.

Contribution to the National economy
“As a national carrier, one of our mandates is to contribute to the economic growth of the Sultanate by creating “air bridges” with brotherly and friendly countries to bring tourists from abroad, which is supporting tourism, and creating business opportunities between national businessmen in Oman and abroad. The infrastructure to do this is now practically fully available; Muscat’s new airport is nearing completion after the opening of the new passenger terminal in Muscat, meaning that the home base for Oman Air will be state of the art,” His Excellency Darwish Bin Ismail Al Balushi said.

He added that the contribution from Oman Air, as national airline, to the economy of the Sultanate of Oman is estimated at about RO 600 Million.

“On behalf of myself, the Board of directors and the Executive Management, I would like to thank His Majesty Sultan Qaboos bin Said and his Government for their invaluable advice, timely encouragement and wise guidance. My colleagues on the Board and within Oman Air’s management would once again like to join me in expressing our gratitude to His Majesty for his vision, his kind benevolence and his support,” His Excellency Darwish Bin Ismail Al Balushi concluded.
Corporate Communications and Media
Oman Air

Q3 FY17 SaaS and PaaS Cloud Revenues Up 73% on a GAAP Basis and Up 85% on a Non-GAAP Basis

REDWOOD SHORES, Calif., March 15, 2017 -- Oracle Corporation (NYSE: ORCL) today announced fiscal 2017 Q3 results. Total Revenues were $9.2 billion, up 2% in US dollars and up 3% in constant currency. Non-GAAP Total Revenues were $9.3 billion, up 3% in US dollars and up 4% in constant currency. Cloud software as a service (SaaS) and platform as a service (PaaS) revenues were $1.0 billion, up 73% in US dollars and up 74% in constant currency. Non-GAAP SaaS and PaaS revenues were $1.1 billion, up 85% in US dollars and up 86% in constant currency. Total Cloud Revenues, including infrastructure as a service (IaaS), were $1.2 billion, up 62% in US dollars and up 63% in constant currency. Total Cloud and On-Premise Software Revenues were $7.4 billion, up 4% in US dollars and up 5% in constant currency.

Operating Income was $3.0 billion and Operating Margin was 32%. Non-GAAP Operating Income was $3.9 billion, up 3% in US dollars and up 4% in constant currency, and non-GAAP Operating Margin was 43%. Net Income was $2.2 billion while non-GAAP Net Income was $2.9 billion, up 6% in US dollars and up 7% in constant currency. Earnings Per Share was $0.53, while non-GAAP Earnings Per Share was $0.69, up 7% in U.S. dollars. Without the impact of the US dollar strengthening compared to foreign currencies, Oracle’s reported GAAP Earnings Per Share would have been 1 cent higher.

Short-term deferred revenues were $7.4 billion, up 7% in US dollars and constant currency compared with a year ago. Operating cash flow on a trailing twelve-month basis was $13.5 billion.

“The hyper-growth we continue to experience in the cloud has rapidly driven both our SaaS and PaaS businesses to scale,” said Oracle CEO, Safra Catz. “On an annualized non-GAAP basis, our total cloud business has reached the $5 billion mark, and our SaaS and PaaS businesses grew at the astonishing rate of 85% in Q3. That growth and the resulting scale enabled our SaaS and PaaS businesses to increase non-GAAP gross margins to 65%.  Our new, large, fast growing, high-margin cloud businesses are driving Oracle’s total revenue and earnings up and improving nearly every important non-GAAP business metric you care to inspect; total revenue is up, margins are up, operating income is up, net income is up, EPS is up. Take a look. Q3 was a very strong quarter.”

“Over the last year, we sold more new SaaS and PaaS than Salesforce.com, and we’re growing more than 3 times faster,” said Oracle CEO, Mark Hurd. “If these trends continue, where we are selling more SaaS and PaaS in absolute dollars AND growing dramatically faster, it’s just a matter of when we catch and pass Salesforce.com in total cloud revenue.”

“Both our SaaS and PaaS businesses are doing great, but I’m even more excited about our second generation IaaS business,” said Oracle Chairman and CTO, Larry Ellison. “Our new Gen2 IaaS is both faster and lower cost than Amazon Web Services. And now our biggest customers can run their largest and most demanding Oracle database workloads in the Oracle Cloud – something that is absolutely impossible to do in the Amazon Cloud.”

Oracle also announced that its Board of Directors declared a quarterly cash dividend of $0.19 per share of outstanding common stock, reflecting a 27% increase over the current quarterly dividend of $0.15. Larry Ellison, Oracle’s Chairman of the Board, Chief Technology Officer and largest stockholder, did not participate in the deliberation or the vote on this matter. This increased dividend will be paid to stockholders of record as of the close of business on April 12, 2017, with a payment date of April 26, 2017.


Q3 Fiscal 2017 Earnings Conference Call and Webcast
Oracle will hold a conference call and webcast today to discuss these results at 2:00 p.m. Pacific. You may listen to the call by dialing 816.287.5563, Passcode: 425392. To access the live webcast, please visit the Oracle Investor Relations website at http://www.oracle.com/investor. In addition, Oracle’s Q3 results and Fiscal 2017 financial tables are available on the Oracle Investor Relations website.

A replay of the conference call will also be available by dialing 855.859.2056 or 404.537.3406, Passcode: 83283985.

Total income Rs 23.4 billion; Life Fund tops Rs 78 billion; Investment portfolio swells to Rs 80.7 billion

Strong growth in new business and noteworthy returns on investments generated Rs 23.43 billion in total income for Ceylinco Life in FY 2016, during which the company retained its position as the market leader in Sri Lanka’s life insurance industry for the 13th consecutive year.

The Rs 3.6 billion improvement in income reflected a growth of 17.8 per cent over 2015, and was made up of a growth of Rs 1.6 billion or 12 per cent in premium income, and an increase of Rs 2 billion in investment income, which grew by 30 per cent in the 12 months ending 31st December 2016, the company said.

Ceylinco Life recorded gross premium income of Rs 15 billion in the year reviewed, selling 143,693 new life policies at a monthly average of 11,974.

The company’s Life Fund grew by 14 per cent to Rs 77.93 billion at the end of the year under review, following a transfer of Rs 9.91 billion to the fund after the final shareholder transfer. This represents a 24 per cent increase over the transfers made in 2015. Over the past two years alone, Ceylinco Life’s Life Fund has grown by nearly 30 per cent.

The company recorded net profit of Rs 3.1 billion for the year and transferred Rs 2.3 billion to shareholders. Dividends and earnings to shareholders for the 12 months exceeded Rs 3.4 billion.

“We are satisfied with the growth achieved in 2016 in the context of the general sentiment that prevailed in the market during the year,” Ceylinco Life Managing Director/CEO Mr R. Renganathan commented. “Our strategy of focussing on the core message of life insurance and the on importance of trust when entering into ‘a relationship for life’ has clearly been successful.”

He said investment income for the year as Rs 8.78 billion reflected the professional management of the company’s investment portfolio, which grew by a solid 20 per cent to Rs 80.75 billion as at 31st December 2016.

At the end of the year under review, Ceylinco Life’s investment portfolio comprised of Government Securities (53 per cent); Fixed Deposits (9 per cent); Real Estate (8 per cent); Corporate Debt (29 per cent) and Others (1 per cent). All investments are made in conformity with the investment guidelines stipulated under the Regulation of the Insurance Industry Act No 43 of 2000 and are subject to regular monitoring by the Insurance Board of Sri Lanka (IBSL).

A key performance indicator that represents the company’s financial strength and ability to meet its financial obligations in respect of its insurance contracts is its Capital Adequacy Ratio, which stood at 335 per cent at the end of 2016, more than two and a half times the statutory requirement of 120 per cent.

Goss claims and benefits paid by Ceylinco Life to policyholders in 2016 surpassed Rs 6.8 billion, an 11 per cent improvement over the previous year. This included Rs 2.9 billion in annual bonuses and ‘Avurudu cash’ bonuses to more than 300,000 policyholders and maturities totalling Rs 4.2 billion. The annual bonus pay-out in 2016 was the highest in the company’s history.

One of the highlights of the year reviewed was the reaffirmation by World Finance, the respected UK-based magazine, of Ceylinco Life as the ‘Best Life Insurance Company in Sri Lanka’ for the third successive year, following an in-depth assessment of key performance indicators. This prestigious accolade is based on scores accorded to the company on multiple parameters pertaining to long term insurance. Among the areas looked at were average time to underwrite and to issue a policy; how risk exposure is assessed and accommodated; achievements in the 12 months reviewed; how appropriate cover is ensured for new and existing clients; Customer Retention Rate; Average Time in Claim Settlement; New Customer Acquisition Rate; Average Cost per Policy and Net Premium.

Another highlight of 2016 was Ceylinco Life’s increased emphasis on greening its operations. Besides the eco-friendly branch buildings opened in the course of the year, the company launched a series of environment-related initiatives across its branch network that generated a saving of more than 43,000 litres of fuel, an improvement of 12 per cent over 2015; a saving of 46,228 units of electricity and a reduction of 2.8 million sheets of A4-sized paper.
Ceylinco Life also broke new ground in 2016 with the installation of the biggest solar electricity system in the city of Colombo at the company’s Head Office. With a system capacity of 63.18kW, the solar power unit generates a saving of 7,200 units of electricity per month, resulting in an annual reduction of 65 tons of CO2 emitted to the environment as a result of consumption of power from the national grid and thermal power generators.

The market leader in Sri Lanka’s life insurance sector since 2004, Ceylinco Life has close to a million lives covered by active policies. The company is acknowledged as the benchmark for innovation in the local insurance industry for its work in product research and development, customer service, professional development and corporate social responsibility.

Colombo, 23rd February, 2017: Singer (Sri Lanka) PLC announced today its results for the year ended December 31, 2016.  The results showed excellent growth.   Group Revenue increased 21% over the previous year to Rs. 46.9 Billion and Group Net Profit increased 91% to Rs. 2,358 Million. 

The growth in Revenue and Net income is primarily due to the significant initiatives and expansion undertaken by the Group including; the launch of Singer’s own Credit Card with Visa; the launch of the new Singer Vista Smart TV range; the acquisition of Regnis (Lanka) PLC and Singer Industries (Ceylon) PLC and the expansion of Digital Media Corners in retail shops.    The Group also continued its successful campaigns and launch of new models for most of its products and brands.

Singer (Sri Lanka) declared a dividend of Rs. 8.80 per share for 2016 an increase of 110% over the prior year, continuing its long history of robust dividend payments.

There was significant growth in all key product categories. Particularly, tablets grew by 105%, air conditioners by 57% and smart phones by 54%. 

Singer (Sri Lanka) acquisition of majority stakes in Singer Industries (Ceylon) PLC and Regnis (Lanka) PLC were from its parent company Retail Holdings (Sri Lanka) B.V. (formerly known as Singer (Sri Lanka) B.V.)  and resulted  in a one-time gain on bargain purchase amounting to Rs. 564.5. Million.  Post- Acquisition Net Income of these two companies are consolidated in the Group results of Singer (Sri Lanka) PLC.  There was no increase in Group Revenue due to this acquisition. 

Group Revenue in the 4th Quarter increased 19% to Rs. 13.8 Billion while Net Profit increased by 49% to Rs. 603.6 Million. 

The 2016 financial results in the case of Singer (Sri Lanka) PLC company only, recorded an increase of 29% in Net Profit amounting to Rs.  1,112 Million. 

Company Comment

Commenting on the FY 2016 results, Asoka Pieris, Group CEO stated, “We are pleased to report outstanding growth during 2016 and are optimistic that with initiatives underway the momentum will continue in 2017 and beyond. Singer Sri Lanka’s strong commitment to maintaining excellence in product quality and customer service has resulted in enhanced customer perceptions bringing growth for the company.”

About Singer (Sri Lanka) PLC

Singer (Sri Lanka) Group is the largest retailer, financier and manufacturer of consumer durables in Sri Lanka.  The company has 422 retail stores as well as an e-commerce platform. The company also serves over 2800 dealers/sub retailers.  Renowned for its after sales service, the company has 14 service centres and over 300 service agents.  Apart from its house brands, the company is a distributor for many well-known brands.

Singer commenced business in Sri Lanka in 1877 and is 79.7% owned by Retail Holding (Sri Lanka) B.V (a Netherlands company) and the shares of the company are publicly traded in the Colombo Stock Exchange.

Additional financial and other information about the Company may be found at the Corporate/Investor section of the Company’s website:  www.singersl.com.  For further information, please contact company secretary: A.C.M. Irzan at +94 11 2316244

  • Group Revenue increases 21% to Rs. 46.9 Billion
  • Group Net Profit increases 91%

Results at a glance

Total assets up by 20% to Rs. 356Bn
Net Loan book grows by 22% to Rs. 236Bn
Customer deposits grows by 22% to Rs. 273Bn
Profit after tax improves by 4.7%  to Rs. 4,010Mn

In the backdrop of challenging external environment, Seylan Bank reported a resilient performance. The Bank recorded a Profit after tax of Rs. 4,010 Million for the year ended 31st December 2016, which is the highest profit reported since its inception.

Net interest income recorded a moderate growth of 12.03% as a result of the strong balance sheet growth. Net interest Margin contracted from 4.42% in 2015 to 4.19% in 2016 due to Cost of deposits increased at a faster rate.

Net fee and commission income witnessed a 15.04% growth from Rs. 2,697 Million to Rs. 3,103 Million during 2016, mainly attributed to core banking related business.

Other operating income comprising of net gains from trading, gains on financial instruments, gains on foreign exchange and other income decreased  by 13.05% from Rs. 1,624 Million reported in 2015 to  Rs.1,412 Million during 2016 mainly as a result of mark- to-market losses on Government Securities, due to the upward movement in interest rates.

Total Expenses recorded an increase of 12.76% from Rs. 8,625 million to Rs. 9,725 million. Expenses growth was witnessed by a higher proportion of investments being made towards branch upgrading and refurbishments, continuous development in human resources and technology which resulted in the underlying expenses increasing rapidly over the previous period. Bank continues to focus on Cost Management through strategic cost management initiatives and through the implementation of lean concepts.

The Bank reported a significant net credit growth of 22.22%, with net advances growing from Rs. 193,104 Million to Rs. 236,020 Million during 2016. The Gross NPA ratio has also improved to 4.47% in 2016 compared to 4.68% in 2015.

CASA growth slowed down with a notable shift from low cost to fixed deposits seen across the industry mainly due to increasing interest rates. As a result Bank’s CASA ratio (current & savings accounts) stood at 32.5% and total Time Deposits increased from 63.71% by end of year 2015 to 67.5% as at 31st December 2016 of the total deposit base. The overall deposit base recorded a growth of 21.79% from Rs. 224,525 Million by end of 2015 to Rs. 273,456 Million by 31st December 2016.

Consequently, the Bank's Earnings per Share (EPS) grew from Rs 11.11 to Rs. 11.63. The Bank recorded a Return (profit before tax) on Asset (ROA) of 1.76% and Return on Equity (ROE) of 15.18%. The Bank’s Net Asset Value per share as at 31st December 2016 was Rs. 80.51 (Group Rs 84.13).

By end 2016 the Bank network comprised of 166 Banking Centres, 100 Student Savings Centres and 202 ATMs. Bank will continue to grow the Branch network to reach a larger spectrum of customers and widen the Bank's geographical presence mainly to strengthen their on-going support for the growth and development of Small and Medium Scale (SMEs) Enterprises in the country. Further the Bank also re-located and refurbished 14 branches during the period to provide enhanced services to its customers.

The Bank remains well capitalised with a strong core capital adequacy ratio of 10.74% and total capital adequacy ratio of 13.18% as at 31st December 2016. In October 2016, Fitch reviewed the Bank’s rating and reaffirmed the Bank’s rating at ‘A-lka’ with a ‘stable’ outlook in January 2017.

Having successfully completed its 2012-2016 strategic plan and achieving significant strides in terms of SME coverage, retail growth, branch expansion and process improvement the Bank embarked upon developing its new 2017-2020 strategic plan in consultation with the Boston Consulting Group. The new plan will focus on an ambitious growth strategy built on the pillars of excellent customer service, product innovation and value addition aided by digital transformation.

As a responsible corporate citizen, the Bank continued focusing on education which has been the choice and centre of attention of its CSR activities. During the year 40 school libraries were opened taking the overall number of libraries opened under the project to 120 under “Seylan Pehesara” Project.

Earnings up by 7% YoY: CFIN recorded earnings attributable to equity holders of the parent of LKR 1,225Mn in 3QFY17, up 7% from LKR 1,148Mn in 3QFY16. Higher earnings during the quarter was mainly driven by the increase in the Net interest income (NII) coupled with the reduction in impairments. On a QoQ basis earnings saw a marginal decline of 4% from LKR 1,275Mn in 2QFY17, as the increased VAT and income taxes cancelled off the 3% increase in the profit before VAT, NBT and income taxes.

 Net interest income (NII) grew by 8% YoY: The net interest income (NII) increased by 8%YoY to LKR 2,473Mn in 3QFY17 from LKR 2,281Mn in 3QFY16. On a QoQ basis, NII saw an increase of 1% from LKR 3,215Mn in 2Q16.   

 Impairments dipped by 82%: Impairments on loans and other credit losses dropped to LKR 28Mn in 3QFY17 from LKR 154Mn in 3QFY16. The reduction in impairments was driven by the increasing value of vehicle prices that compel the customers to make timely payments and secure their loans. 

Operating profit from leasing, hire purchase and other advances grew by 20% YoYThe operating profit of the leasing, hire purchase and other advances segment for the quarter increased by 20% to LKR 1,694Mn in Dec 2016 from LKR 1,407Mn in Dec 2015. As of Dec 2016, this segment contributed 91% to the total operating profit.

Challenging 3Q for SUN due to impact of pharma price controls, 9M EPS down 12.6% YoY


9MFY17 Highlights
  • Consolidated revenue of LKR14.1bn, an increase of 10.1% YoY;
  • PAT amounted to LKR1.3bn, up 27.7% YoY, due to strong Agri performance
  • Healthcare revenue up 10.5% YoY to LKR 5.8bn revenue
  • Strong growth in FMCG, revenue up 19.5% YoY to LKR3.0bn
  • Agri revenue grew 2.7% YoY to LKR4.7bn

3QFY17 Highlights

  • Consolidated revenue of LKR 4.42bn, an increase of 3.2% YoY;
  • PAT amounted to LKR 402.6m, up 3.2% YoY, with strong profitability in Agri business
  • Healthcare growth affected by NMRA regulation to post LKR 1.78bn revenue down 3.1% YoY
  • Agri revenue grew 4.9% on the back of 30% increase in Palm Oil volumes
  • FMCG revenue up 18.2% YoY to LKR 1.1b
  • However, EPS down 92.3% YoY due to NMRA impact

Colombo, February 13, 2017 – Sunshine Holdings PLC (CSE: SUN) reported consolidated revenues of LKR 14.1bn for the nine months ended 31 December 2016 (9MFY17), up 10.1% YoY. PAT grew 27.7% YoY to stand at LKR 1.3bn for 9MFY17, however PATMI declined -12.6% YoY mainly due to a reduction in the Healthcare segment profits caused by the implementation of NMRA price controls.



Healthcare continued to be the largest contributor to group revenue accounting for 41%. Agri was the second largest with 34% followed by FMCG at 21% of the revenue. For 9MFY17, PAT amounted to LKR 1,338m up 27.7% YoY, with Profit After Tax & Minority Interest (PATMI) coming down -12.6% YoY to LKR 446m due to loss in the Healthcare business on account of price control, with a one-time stock loss of LKR 123m. As, a result Agri was the largest contributor to PATMI in 9MFY17 with LKR 245m, which represents 55% of total PATMI.


Net Asset Value per share increased to LKR 45.04 as at end 9MFY17, as compared with LKR 42.78 at the beginning of the year.

 

Business segments


Healthcare

 



Healthcare revenue for 9MFY17 grew 10.5% YoY, led primarily by growth in the retail segment accounting for 41% of Group turnover for the period. EBIT margin for 9MFY17 contracted by 430 bps to 3.3%, mainly on account of price control imposed under the NMRA regulation leading to a one-time stock correction loss of LKR 123m.

The Pharma sub-segment which represents 66.6% of Healthcare revenue grew at only 6% YoY, due to the impact of reduced prices. The company’s Pharma segment is the 2nd largest player in the country, holding 12% share of country’s total market share. Growth in other sub-sectors was comprised of: Surgical (+19% YoY), Retail (+34% YoY), Diagnostics (+6% YoY), Wellness (+16% YoY).

PAT for Healthcare amounted to LKR91m in 9MFY17, down -66% YoY, and representing a margin of 1.6% in 9MFY17.


FMCG

The FMCG sector reported revenues of LKR 3.0bn in 9MFY17, up 19.5% YoY, on the back of both volume and price growth, accounting for 21% of group revenue for the period in review. The domestic branded tea business within the Group’s FMCG segment sold 2.88 million kilos of branded tea, improving 8% YoY, driven by Sunshine Group’s largest brand ‘Watawala Tea’, and their converter brand ‘Ran Kahata’.

PAT from the FMCG segment saw a contraction of 27.5% YoY, to stand at LKR 249m in 9MFY17, with a margin of 8.3%, compared to 13.6% in the same period last year. Low tea prices in the same period last period led to the high margins in 9MFY16. 3Q performance saw rising tea prices affect margins. Business expansion investments pertaining to scaling up of the ‘Zesta Connoisseur’ brand across Shangri-La properties worldwide continued at a steady pace supporting positive improvements to the Group’s operating margins.


Agribusiness

The Agribusiness sector represented by Watawala Plantations PLC (WATA) saw revenue growth of 2.7% YoY to LKR 4.7bn, despite a 8% YoY contraction in Tea revenue. Palm Oil sub sector reported an increase of 47% YoY for 9MFY17. Tea production was affected by bad weather, even as the company continues to focus on its strategy of growing quality teas to curtail losses. Palm Oil volumes were 15% higher than the same period last year. The company managed to obtain a higher price for its CPO during 9MFY17, which positively contributed to both top line and bottom line of the Agri sector.

PAT for 9MFY17 amounted to LKR 1,014m, against LKR 439m in the same period last year. Growth in profits was mainly attributed to a reduction in losses in the Tea sub-sector, and a parallel increase in profits from the Palm Oil sub sector. The Tea sub-sector recorded a net loss before tax of LKR 27m for 9MFY17 compared to a net loss of LKR 172m in the same period last year.

Meanwhile, the Palm Oil segment, which made LKR 1,057m PBT for 9MFY17 against LKR 575m last year, continued to be the largest contributor to WATA profits and managed to cover the losses in Tea.


Other
Packaging revenues amounted to LKR 251m, down 4.2% YoY in 9MFY17, against LKR 262m in the same period last year. PAT amounted to LKR 2.9m in 9MFY17 lower than LKR 13m recorded in 9MFY16.

Revenue for the Renewable Energy division amounted to LKR 68m in 9MFY17, down 35% YoY from LKR 104m during the same period last year as a result of the change in weather patterns. The mini-hydro plant, which is in its third year of operations, made loss of LKR 10.16m for 9MFY17, compared to a profit of LKR 41.8m in the same period last year.

February 14th 2017: Leading Sri Lankan conglomerate Hayleys PLC’s profits after tax rose by 8% Year-on-Year (YoY) to reach Rs. 1.1 billion during the quarter ended 31st December 2016 (3Q16).

Revenue during the quarter increased by a sharp 27% YoY up to Rs. 30 billion buoyed by strong performances across in the Group’s Agriculture, Construction Materials , Transportation & Logistics, and Hand Protection segments, while Operating profits expanded by 24% YoY, reflecting strong growth in core operating activities.

 For the 9 month period Profit after tax (PAT) stood at Rs. 2.7 billion, reflecting a 11% reduction from the previous year.

Strong performances were recorded across the Group’s Agriculture Sector with PAT in the segment increased from Rs. 543 million up to Rs. 667 million. Hayleys’ Hand Protection business posted impressive turnover growth, increasing rapidly from Rs. 9 billion up to Rs. 10.9 billion while the segment’s profits increased to Rs. 390 million, as compared with a previous Rs. 225 million in 2015.
The Group’s Construction Materials sector performed well to record a substantial growth in profits reaching Rs. 491 million.

The continued troubles in the Plantation sector, as experienced across the industry, acted as a drag on profitability for the Group during the 9 month period while the finance cost increased mainly due to increase in rates and the strategic investments carried out by the Group.

 “The Hayleys Group remains strongly focused for growth, innovation and prosperity within the Sri Lankan economy. During the period in review, the Group continued its pioneering efforts to generate new opportunities for growth and establish new benchmarks in terms of innovation and value addition to local raw materials."

“Similarly, the Group’s concerted emphasis on the development of cutting edge technologies adapted to meet local requirements also yielded significant results, as evidenced by our recent unveiling of Sri Lanka’s largest capacity 10 MW solar power plant and it is encouraging to note that our efforts have not gone unrecognized with Hayleys being adjudged as Sri Lanka’s Best Corporate Citizen during the period in review. Moving forward into the final quarter of the year we anticipate continued growth across all sectors, expanding on the strong momentum built up over the last two quarters” Hayleys PLC Chairman, Mr. Mohan Pandithage stated.     

The Board of Directors of Hayleys PLC comprises Messrs Mohan Pandithage (Chairman and Chief Executive), Dhammika Perera (Co-Chairman), Rizvi Zaheed, Nimal Perera, Sarath Ganegoda, Rajitha Kariyawasan, Dr. Harsha Cabral PC, Dr. Mahesha Ranasoma, Lalin Samarawickrama, Ruwan Waidyaratne, Hisham Jamaldeen and Aravinda Perera.

Westborough, MA – (February 9, 2017) Virtusa Corporation (NASDAQ GS: VRTU), a global business consulting and IT outsourcing company that combines innovation, technology leadership and industry solutions to enhance business performance, accelerate time-to-market, increase productivity and improve customer experience, reported consolidated financial results for the third quarter of fiscal 2017, ended December 31, 2016.

Third Quarter Fiscal 2017 Consolidated Financial Results
Revenue for the third quarter of fiscal 2017 was $217.2 million, an increase of 3.4% sequentially and 44.2% year-over-year.  On a constant currency basis, (1) third quarter revenue increased 4.2% sequentially and 48.6% year-over-year.  

Virtusa reported GAAP income from operations of $6.5 million for the third quarter of fiscal 2017, compared to $3.5 million for the second quarter of fiscal 2017 and $14.1 million for the third quarter of fiscal 2016. Third quarter fiscal 2017 GAAP income from operations includes $1.9 million of restructuring charges related to certain cost savings initiatives.

On a GAAP basis, net income for the third quarter of fiscal 2017 was $4.4 million, or $0.15 per diluted share, compared to $3.2 million, or $0.11 per diluted share, for the second quarter of fiscal 2017, and $11.3 million, or $0.38 per diluted share, for the third quarter of fiscal 2016. Third quarter fiscal 2017 GAAP net income includes the impact of the aforementioned restructuring charges related to certain cost savings initiatives, net of tax. 

Balance Sheet and Cash Flow
The Company ended the third quarter of fiscal 2017 with $237.2 million of cash, cash equivalents, and short-term and long-term investments (2).  Cash flow from operations was $13.5 million for the third quarter of fiscal 2017.

Management Commentary
Kris Canekeratne, Virtusa’s Chairman and CEO, stated, “We are pleased with our third quarter results. We see continuing client demand across our industry groups and geographies for our Digital Transformation and Innovation and Operational Excellence solutions. Our differentiated solution strategy and deep domain expertise are enabling us to win in the market, and position us well for sustained growth.”

Ranjan Kalia, Chief Financial Officer, said, “During the third quarter, we delivered solid revenue growth across all industry groups and geographies. We expect this trend will continue into the fourth quarter, leading to our fourth quarter sequential revenue growth guidance of 4% at the midpoint. In addition, our Q4 fiscal 2017 guidance calls for strong non-GAAP operating margin accretion driven by top-line growth and SG&A leverage. The midpoint of our fiscal 2017 non-GAAP EPS guidance is reduced by $0.04 primarily due to a change in our effective tax rate assumption.”

Financial Outlook
Virtusa management provided the following current financial guidance:

  • Fourth quarter fiscal 2017 revenue is expected to be in the range of $224 to $229 million. GAAP diluted EPS is expected to be in the range of $0.31 to $0.35. Non-GAAP diluted EPS is expected to be in the range of $0.43 to $0.47.

 

  • Fiscal year 2017 revenue is expected to be in the range of $856.8 to $861.8 million. GAAP diluted EPS is expected to be in the range of $0.36 to $0.40. Non-GAAP diluted EPS is expected to be in the range of $1.24 to $1.28.
  • Virtusa anticipates a restructuring charge in the fourth quarter fiscal 2017 of approximately $0.8 million related to certain cost savings initiatives. This charge will not impact reported non-GAAP EPS.

 

The Company’s fourth quarter and fiscal year 2017 diluted EPS estimates are based on average share counts of approximately 30.4 million and 30.2 million, respectively, (assuming no further exercises of stock-based awards) and assumes a stock price of $25.57, which was derived from the average closing price of the Company’s stock over the five trading days ended on February 6, 2017.  Deviations from this stock price may cause actual diluted EPS to vary based on share dilution from Virtusa’s stock options and stock appreciation rights. 

  • Third quarter fiscal 2017 revenue of $217.2 million, an increase of 3.4% sequentially and 44.2% year-over-year.
  • Third quarter fiscal 2017 diluted EPS of $0.15 on a GAAP basis, and $0.37 on a Non-GAAP basis.
  • $237.2 million of cash, cash equivalents, and short-term and long-term investments at the end of third quarter fiscal 2017.

Group turnover for the 9 months of the financial year 2016/17 was Rs. 18 billion, compared to Rs.16 billion for the same period of the previous year. The Hand Protection sector contributed Rs. 11 billion to the Group’s top line, while the Plantation sector recorded a turnover of Rs. 7 billion for the period.

The Hand Protection sector reported a PBT of Rs.598 million which is a 30% increase compared to Rs.460 million in the previous period. However, the Plantation sector recorded a loss of nearly Rs. 357 million due to lower crop, mainly arising from adverse weather conditions and restrictions on weedicides.

Established in 1976, Dipped Products is one of the leading non-medical rubber glove manufacturers in the world, and accounts for a 5 percent share of the global market. The company’s products now reach 68 countries.

The Board of Directors of Dipped Products PLC comprises Messrs. Mohan Pandithage (Chairman), Dr. K. I. M. Ranasoma (Managing Director), F. Mohideen, S. C. Ganegoda, Dhammika Perera, M. Bottino, S. Rajapakse, N. A. R. R. S Nanayakkara, S. P. Peiris, K.D.G.Gunaratne, H.S.R. Kariyawasan and S.M.Shaikh.

66% growth in dividends and Regional Expansion Plans for long term growth

Colombo, 25th January 2017. The Teejay Group who recently went through a rebranding process which consolidated its operations in Sri Lanka and the region under the single brand ‘Teejay,’ , announced a strong revenue growth of 33 percent over the nine months ended 31st December 2016. The Group recorded a revenue of 16.4 Billion compared to the Rs. 12.3 Billion during the corresponding period last year and announced a 66 percent growth in dividends to shareholders.

Chairman of Teejay, Bill Lam said that this was achieved through continually operating at optimal capacity, with a full order booking during the period; and that the growth in top line was a result of additional orders being canvassed to cater to the future growth stage of the Company. Even though there were higher sales, the Gross Profit growth was only 27% percent with Rs. 2.4 Billion compared to that of last year’s Rs. 1.9 Billion, he added The Chairman further said that a combination of factors had affected the Group’s gross profit, including the acceptance of extra lower margin orders in preparation for growth; price competition, early investments towards future expansion, the product mix, and the overall impact of steep short term price hikes in raw material. The Group’s profit before tax (PBT) is reported as Rs 1.6 Billion compared to the Rs. 1.4 Billion last year, an increase of 16 percent. This result has been diligently supported by solid Cost management and control across the entire group.

Another impacting factor was taxation, as Teejay Lanka’s tax holiday ended in September 2016; while both Teejay India and Teejay Prints are subject to tax. The tax bill grew by 281 percent, going up to Rs. 150 Million from Rs. 39 Million the previous year. Despite this situation the Group reported an absolute profit after tax (PAT) of Rs. 1.5 Billion compared to the Rs. 1.3 Billion last year; showing an increase of 9 percent during the same period. “The Teejay Group continues to keep a sharp eye on its cash flow disciplines and has carried through a strong balance sheet from the previous quarter with a cash balance of LKR 4 Billion. The consolidated Earnings per Share for the Group recorded SL Rs. 2.10 on a year on year basis showing a growth of 3 percent, although there was a 34 percent drop in growth during the quarter under review, due to the challenges discussed above” says Lam

The Chairman said “ The Group is embarking on its final lap of the second half, setting the foundation for its long-term growth plans. The business is watchful of future market challenges, with a close eye on price fluctuations in the market and increasing changes in the product mix. Despite these short-term impacts which have been somewhat overcome now, our aspirations remain ambitious and aggressive, as we continue to explore new ways of further extending our footprint.”

On a quarterly basis the Group reported a revenue growth of 6.3 Billion compared to the Rs. 5.6 Billion recorded last quarter, showing a growth of 14 percent. However, Gross profits dropped by 15 percent for the third quarter, to Rs. 832 Million. Apart from the above, a temporary countrywide stock outage in coal was also a contributory factor, with energy costs rising due to the coal plant not being able to function at maximum capacity, during some of the period under review. This resulted in a further deterioration of PBT for the quarter, recording a 20 percent drop in operating profits. Since the impact of GP could not be adequately mitigated by the tighter overhead controls in place, the Group reported a net profit of Rs. 473 Million compared to Rs. 672 Million, during the same quarter last year.

However, CEO of Teejay, Sriyan de Silva Wijeyeratne says that despite minor setbacks, Teejay will forge ahead with new plans for expansion and growth. “Our aggressive enhancement in Divided with this interim Rs. 1.00 per share payment, is a clear indication of our confidence in the future potential we possess. We aspire to develop a culture of Service in Manufacturing, by creating bonds that matter. We are already investing further in automation and technology, and innovation is at our core. We are preparing to embrace the future dynamics and trends in the textile industry, especially with the new demand for synthetics and digital prints and we are poised and ready to benefit from those changes. Our Expansion plans are moving according to plan, and the Company will benefit from added capacity in the near future.”, he stated.

“ The prospects of GSP Plus in the near future would further augment the Group’s progress, as all our added capacity in India and Sri Lanka will become eligible for this benefit,” he added.

Teejay is listed on the Colombo stock exchange and supplies to some of the best international brands across the world. The Company was named among the Forbes “Best under a Billion in Asia”. The Group is backed through shareholding by two leading industrialists - Pacific Textiles, a Hong Kong based company with one of the largest manufacturing facilities in China, and Brandix Lanka, which is Sri Lanka’s largest apparel exporter , and partners Teejay as a strategic link in the supply chain.

Huawei, a leading smartphone brand in Sri Lanka, announced that Singer Sri Lanka, the exclusive national distributor for Huawei smartphones, has successfully surpassed Rs. 1 bn Huawei smartphone sales generated solely inthe month of December 2016. As a trusted, state-of-the-art brand amongst the general public, Huawei together with Singer enhanced their sales through the introduction of a number of brand new, innovative smartphones and tablet devices supported by several aggressive marketing initiatives.

The latestHuawei P9 and P9 Lite came with a Leica co-engineered dual camera smartphone, targeting the high-end buyers while the mid-range additions to the GR family-GR5, GR5 Mini, GR5 2017, and the entry-level 4G smartphones Y6PRO, Y6II, Y5II helped increase Huawei’s brand image amongst smartphone enthusiasts around the country. Singer Sri Lanka Group CEO, Asoka Pieris was upbeat about the performance stating, “This is a significant milestone for Huawei and Singer Sri Lanka. I congratulate the entire team for their continuous focus and commitment towards reaching this excellent feat.Since the inception of the partnership with Singer Sri Lanka as exclusive distributors, Huawei has extended to us their fullest support in order to reachour targets. We look forward to achieving an even higher figure in terms of volumes in the year ahead as we set our eyes on taking Huawei to the number one position this year.”

Through the current product line-up with an efficient supply chain management, Singer has effectively managed to accomplish the desired target for 2016 for Huawei. Extensive distribution strategies like the Singer Digital Media channel is focused on achieving a maximum reach for the Huawei brand and being managed effectively in the marketplace. Huawei Device Sri Lanka Country Head Henry Liu commenting about the achievement said, “Since ourentry into Sri Lanka as a smartphone brand, Huawei has been identified as aleader in cutting-edge technology with a feel of a leading global brand. Sri Lankan smartphone consumers have been embracing technology trends from around the globe and becoming even more aware about innovative and quality products. Singer Sri Lanka plays an integral role in taking Huawei innovation to our valued customers all around the country.”He further added, “Huawei is making significant progress in the local high-end smartphone market. In December 2016,we managed to sell over 500 P9 smartphones in Sri Lanka, which is a commendable result.”

Globally more than 10 million Huawei P9/P9 Lite smartphones were shipped, making it the company’s first flagship series to top the 10 million mark. This is a milestone for Huawei both from a product and brand perspective. The Huawei P9 and P9 Lite devices have achieved impressive results in the premium segment; a major breakthrough that proves Huawei’s investment in international markets is paying off.

Huawei strives to incorporate leading technological breakthroughs and make their products available for all types of budgets; from the high-end, to the entry-level consumer. In Sri Lanka, Singer has been instrumental in acknowledging the many benefits of owning a Huawei smartphone whilst extending their distributing arm to almost every major town in the country. Sales from the Western region have mainly shown good performance and Huawei has been well-received as a leading brand amongst consumers from cities such as Gampaha, Kandy and Galle.

Global awareness of the Huawei brand has continued to grow along with Huawei’s outstanding market performance. In 2016, Huawei was ranked No. 72 in Interbrand’s “Top 100” most valuable global brands list, up 16 spots from 2015. Huawei was again listed as one of the Top 100 most valuable brands by Brand Z - at No.50 this year - up from No.70 in 2015. Additionally, in November, Huawei was named “Best Consumer Electronics Brand” in “Best Brands 2016 – the Chinese brand ranking” based on GfK’s consumer survey. In Sri Lanka, Huawei enjoys over 30% market share according to GfK research.

Ceylon Tobacco Company PLC (CTC) says that the revenue model which would have earned the government of Sri Lanka around Rs. 100 billion in 2016 is now broken. The company notes that the excise and VAT hikes in October and November last year, which led to a staggering 43% price increase in legally manufactured cigarettes, have severely impacted what the government earned through the sale of legal cigarettes in Sri Lanka.

CTC paid Rs. 73 billion in excise during the first nine months of 2016. Based on projections made government should have earned more than Rs. 27 billion in the last three months of the year. However, post the exorbitant excise hike, revenue figures came down to Rs. 14 billion during the last quarter, creating a dent of over 44% in revenue for the last quarter. As a result, state coffers could only earn Rs. 87 billion, incurring a loss of LKR 13 billion.

Commenting on this situation, MD/CEO, Michael Koest says, “The government’s objectives of increasing taxes on CTC’s products were twofold. They hoped this measure would lead to a decrease in tobacco consumption in the country while at the same time increasing its revenue from legal cigarettes. However, what we have seen during the last quarter of the year contradicts both these objectives. We have seen a surge in illicit cigarettes entering the market and smokers substituting legal cigarettes with smuggled products or beedi. What’s also disturbing is that the government is losing out on the revenue opportunity.”

CTC also announced earlier that it was compelled to make a 20% headcount reduction in its Colombo factory and was shutting down 4 leaf depots as a result sales dipping by 45%.

Colombo. Thursday 08 December 2016. In what has been described as a historic financial transaction, Group Lease Public Company Limited (GLPCL), a digital finance company listed on the Stock Exchange of Thailand (SET), acquired a stake of 22.99% stake in Commercial Credit & Finance Plc (CCF) for USD 70 million on the CSE. The transaction valued at over Rs. 10.56 Billion is one of the highest recorded on the CSE.

In the same exercise, BG Investments (Pvt.) Ltd and related companies along with CCF sold 100% stake in microfinance subsidiary in Myanmar - BG Microfinance Myanmar Co Ltd (BGMM) - for a consideration of USD 8.0m to GLPCL. The CCF stake of 28.1% was valued at USD 2.284 Mn and works out to Rs. 330 million at the current exchange rate of Rs. / USD 146.85. CCF will book a profit of Rs. 277.21 million before taxes on the transaction.

“First announced in September this year, the former is a historical transaction in terms of size. Two years ago, the investment of Rs. 1.68 billion (US$12.8 million equivalent) by Creation Investments Sri Lanka LLC was the biggest foreign investment into a finance company. Commercial Credit is very happy to partner with GLPCL where we see a long term win-win partnership through this investment with many opportunities for capital raising, synergies and growth”, said Commercial Credit’s Chief Operating Officer Rajiv Casie Chitty.

GL’s Chairman/CEO Mitsuji Konoshita sees this decision to buy 29.99% of Commercial Credit & Finance Plc (CCF) as one which will further enhance the strategic partnership between the two groups. “We look to combine our efficient digital finance platform with CCF’s very successful track record in the field of finance, to grow our businesses in all markets where we are and will be present, while CCF’s need to access to capital can easily be met by our capability to raise funds internationally”.

The acquisition valued at USD 70 million marks GL’s first major expansion outside of the ASEAN region. From its home base in Thailand, GL has expanded successfully into Cambodia, Laos, Indonesia and, more recently, Myanmar through BGMM.

With a history of 34 years, Commercial Credit and Finance PLC is one of Sri Lanka’s leading finance companies with a total asset base of Rs. 70 billion as at 31 March 2016. It is listed on the Colombo Stock Exchange.

CCF offers a wide portfolio of products and services including Fixed Deposits, Savings, Leasing, Hire Purchase, Education Loans, Real Estate, Term Loans, Gold Loans, Revolving Business Loans, Factoring, and Microfinance products which are offered in over 120 locations across the country. Upgraded branch facilities and cutting-edge marketing strategies continue to garner the Company a rapidly expanding and loyal client network.

Sri Lanka’s life insurance market leader Ceylinco Life has reported total income of Rs 17.165 billion for the nine months ending 30th September 2016, reflecting growth of 15.3 per cent over the corresponding period of last year.

Premium income for the nine months improved by 11 per cent to Rs 11 billion, while investment and other income grew by 23.6 per cent to Rs 6.16 billion in the review period, the company said.

The company’s investment portfolio grew by a noteworthy Rs 13.24 billion or 19.7 per cent over the nine months to pass the Rs 80 billion mark at the end of the third quarter of 2016, manifesting Ceylinco Life’s prudent investment strategies.

The company’s investment portfolio as at 30th September 2016 comprised of Government Securities (57 per cent); Licensed Private Banks (10 per cent); State Banks (2 per cent); Real Estate (7 per cent); Corporate Debt (23 per cent) and Others (1 per cent). These investments are made in conformity with the investment guidelines stipulated under the Regulation of the Insurance Industry Act No 43 of 2000 and are subject to regular monitoring by the Insurance Board of Sri Lanka (IBSL).

A transfer of Rs 6.7 billion in respect of the review period saw the company’s Life Fund grow to Rs 74.72 billion as at 30th September 2016, while total assets increased by Rs 14 billion or 17.6 per cent to Rs 94.37 billion.

The shareholders fund grew by an equally impressive 16.87 per cent to Rs 10.5 billion in the nine months reviewed.

“We are pleased with our performance in the year to date because it represents the ability of the company to generate solid operational growth even in non-conducive market conditions,” Ceylinco Life Managing Director/CEO Mr R. Renganathan said. “It is no secret that disposable incomes continue to shrink, making life insurance beyond the means of many vulnerable segments. We continue to address this with affordable products and new delivery channels, while focussing on the fundamentals of the business.”

Ceylinco Life paid Rs 4.93 billion in net claims and benefits during the nine months reviewed, an increase of 12.5 per cent over the corresponding period of 2015.

The company’s comparative figures for 2015 include a period prior to the segregation of the business of Life Insurance as required by Section 53 of the Regulation of Insurance Industry (Amendment) Act No. 03 of 2011. Ceylinco Life commenced operations as a standalone life insurance business from 1st June 2015.

Adjudged Sri Lanka’s Best Life Insurer in 2016 for the third consecutive year by World Finance, Ceylinco Life has close to a million lives covered by active policies. The company is acknowledged as the benchmark for innovation in the local insurance industry for its work in product research and development, customer service, professional development and corporate social responsibility.