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Investor Presentation 1Q16 1
Investor Presentation
1Q16
1
2
We are geared
to deliver a bold
new world
Vision
Our Vision is to be the innovator of banking solutions to the wider Corporate, SME and Retail segments and to be their Bank of choice, through professional and empowered people
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Mission
To our customers we provide the means of economic upliftment through customized banking and financial services.
To our shareholders we provide a return on their investment above industry norm.
To our staff we are a learning and innovative organization providing opportunities for faster career progression within a pleasant work environment.
We adhere to the practice of good Corporate Governance in the eyes of the regulatory authorities.
We are conscious of the need to be a responsible corporate citizen for the betterment of our society
Key Company Milestones
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Established as the 8th indigenous Commercial Bank
First bank to launch Internet banking
Restructuring of the bank through a Sampath Bank led consortium
Landmark investment from Middle East -Royal Family of Saudi Arabia
Listed in the CSE, Highest oversubscribed IPO
Acquisition of NAMAL and UB Finance
CFI award for Best SME Bank
TPG through its affiliate Culture Finance Holding strikes landmark deal with Union Bank
New Core-Banking system Implementation
First bank in Sri Lanka to implement Microsoft cloud technology
64 branches with access to over 2,700 ATM’S
2014-20162011-20132001-20101995-2000
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Financial Overview - Bank
“The Bank’s 1st quarter performance signifies the Bank’s capacity to reach the ambitious growth projected for the remainder of 2016” - CEO
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March 2016 LKR Mn YoY Growth
Net Interest Income 444 (16%)
Total Operating income 766 16%
Operating Cost 672 23%
Net Profit for the period 80 220%
Loans and Advances 43,259 48%
Customer Deposits 42,598 43%
Total Assets 75,823 53%
Snapshot 1Q16
Profit for Shareholders grew by 220%
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Financial Performance – Income Statement
1Q16 YoY Growth
Net Interest Income 444 (16%)
Net Fee and commission income 62 146%
Net Trading and other operating income 261 138%
Total Operating income 766 16%
Operating Cost 672 23%
Impairment 3 96%
Net profit before taxes and VAT on FS 91 58%
Taxes including VAT on FS 11 66%
Net Profit for the period 80 220%
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Revenue Generation
NII
80%
OI
20%
1Q15 1Q16
OI
42%
NII
58%
Total operating income grew by 16%
Incremental Income LKR Mn YoY
NII 444 (16%)
Fee Income 62 146%
Trading & Others 261 138%
*OI – Other income
1Q16 Vs 1Q15
Fee & Commissionincome
Trading
Other operatingincome
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Operating Expenses
1Q16 1Q15
The increase in cost was in line with our
Strategic initiatives.
Incremental cost LKR Mn YoY
Staff Cost 306 32%
Depreciation &
Amortization92 19%
Other Operating cost 274 16%
Cost to income ratio %
1Q15 1Q16
82.1%
86.9%Expense distribution 1Q15 1Q16
Staff Cost 43% 46%
Depreciation &
Amortization14% 14%
Other Operating cost 43% 41%
Operating Expenses (LKR Mn)
1Q15 1Q16
546
672
1Q16 Vs 1Q15
PersonnelExpenses
Depreciation &Amortization
Other Expenses
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LKR Mn YTD
Cash and balances with banks 4,331 54%
Reverse REPO 369 (76%)
Placement with banks 173 (39%)
Loans & Receivables 43,259 8%
Investment in units 6,628 (22%)
Other interest earning assets 17,410 22%
Investment in subsidiaries 892 0%
Non interest earning assets 2,761 2%
Total Assets 75,823 7%
Customer Deposits 42,598 13%
Due to banks and repurchased
agreements14,881 (2%)
Non interest earning liabilities 1,767 42%
Equity 16,577 (2%)
Total Equity and Liabilities 75,823 7%
Statement of financial position – (Bank)
Total Assets (LKR Mn)
Loans (LKR Mn)
1Q15
70,530
Deposits (LKR Mn)
1Q15
1Q15
40,095
37,653
1Q16
75,823
43,259
1Q16
1Q16
42,598
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Segmental dispersion of Loans
Financial Position - Composition of the Balance Sheet
Product composition of Deposits
Assets
Funding
Loans - 57%
Treasury Assets - 33%
Deposits - 56%
Borrowings - 20%
8%15%
77%
CA
SA
FD
49%
43%
8%
Corporate
SME
Retail
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Loans and Receivables
Capital Adequacy
Financial Position - Loan Growth & Capital Adequacy
49%
43%
8%
1Q16
-
10,000
20,000
30,000
40,000
2011 2012 2013 2014 2015 1Q16
LKR Mn
2015
50%43%
7%
Corporate SME Retail
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
2011 2012 2013 2014 2015 1Q16
Tier 1 Tier 2
Tier 1
Tier 2
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Customer Deposits
CASA
Financial Position - Deposit Growth & CASA
CASA grew by 9% in the first quarter of 2016
8%15%
77%
CA
SA
FD
0%
5%
10%
15%
20%
25%
30%
-
2,000
4,000
6,000
8,000
10,000
12,000
2011 2012 2013 2014 2015 1Q16
LKR Mn
CASA CASA Ratio
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
2011 2012 2013 2014 2015 1Q16
LKR Mn
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Gross NPL
Significant progress since 2014 has been made with regard to
NPL’s despite our aggressive loan growth.
Net NPL for 2016 was 2.3%
Asset quality overview
Net NPL
0%
2%
4%
6%
8%
10%
12%
14%
1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16
0%
2%
4%
6%
8%
10%
12%
14%
1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16
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Key Indicators - Bank
Performance Indicators 2015 1Q16
Return on Equity 1.1% 1.9%
Return on Assets 0.3% 0.3%
Net Interest Margin 3.4% 2.4%
Gross - Non Performing Loans 3.6% 3.3%
Net – Non Performing Loans 2.7% 2.3%
Total Capital Adequacy 23.9% 24.5%
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Financial Performance – Group
1Q16 YoY Growth
Net Interest Income 571 (7%)
Net Fee and commission income 105 68%
Net Trading and other operating income 342 175%
Total Operating income 1,018 27%
Operating Cost 800 26%
Impairment 29 63%
Net profit before taxes and VAT on FS 189 120%
Taxes including VAT on FS 47 2%
Net Profit for the period 143 276%
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LKR Mn YTD
Cash and balances with banks 4,293 42%
Reverse REPO 369 (77%)
Placement with banks 173 (41%)
Loans & Receivables 49,284 8%
Investment in units 6,628 (22%)
Other interest earning assets 17,275 26%
Investment in real estate 213 0%
Non interest earning assets 3,842 0%
Total Assets 82,078 7%
Customer Deposits 46,633 12%
Due to banks and repurchased
agreements15,035 (1%)
Non interest earning liabilities 4,006 31%
Equity 16,403 (2%)
Total Equity and Liabilities 82,078 7%
Statement of financial position – (Group)
Total Assets (LKR Mn)
Loans (LKR Mn)
1Q15
76,542
Deposits (LKR Mn)
1Q15
1Q15
45,450
41,624
1Q16
82,078
49,284
1Q16
1Q16
46,633
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Board of Directors
Name Title
P. Jayendra Nayak Chairman
Alexis Lovell Deputy Chairman
Asoka de Silva Senior Director
Indrajit Wickramasinghe Executive Director/ CEO
Sow Lin Chiew Non Independent, Non Executive Director
Priyantha Fernando Independent, Non Executive Director
Sabry Ghouse Independent, Non Executive Director
Hussain Imtiaz Muhseen Independent, Non Executive Director
Ranvir Dewan Non Independent, Non Executive Director
Gaurav Trehan Non Independent, Non Executive Director
Puneet Bhatia Non Independent, Non Executive Director
Michael J. O’Hanlon Non Independent, Non Executive Director
Ayomi Aluwihare Independent, Non Executive Director
Sumedh Jog Alternate Director
Yoke Sun Woon Alternate Director
Legal Form
A Public Limited Liability Company incorporated in Sri Lanka
under the Companies Act No. 17 of 1982. Re-registered under the
Companies Act No. 7 of 2007. Listed as a public quoted Company
at the Colombo Stock Exchange in 2011.
A Licensed Commercial Bank under the Banking Act
No. 30 of 1988.
Date of Incorporation
February 2nd, 1995
Auditors
Ernst & Young
Chartered Accountants,
No. 201, De Saram Place
Colombo 10
Leadership Team
Name Title
Indrajit Wickramasinghe Director/ Chief Executive Officer
Hiranthi de Silva Vice President Wholesale Banking
Malinda Samaratunga Chief Financial Officer
Ravi Divulwewa Vice President Credit
Rajeev Munasinghe Vice President Information Technology
Ravi Jayasekera Vice President Human Resources
S. Sri Ganendran Vice President Operations
Chaya Jayawardena Vice President Retail Banking
Suhen Vanigasooriya Chief Risk Officer
Corporate Information
