Business
BOC’s Rs. 3 trillion asset base, a measure of its contribution to economy – CFO
by Sanath Nanyakkare
Bank of Ceylon’s assets base grew by 24% to LKR 2.9 trillion by end 2020 and at the point of speaking it has surpassed the 3 trillion mark, and the importance of this financial number is that it has an intrinsic value of our customers’ assets and growth potential, Russel Fonseka, Chief Financial Officer (CFO) of Bank of Ceylon said in Colombo yesterday.
“If anything happens to the national economy it reflects on BOC’s balance sheet. You may think why rupees three trillion asset base is so important. Because it does not tell a monetary value only. Anybody can give asset base numbers. But our asset base of LKR 3 trillion has an intrinsic value in the national economy. The total of this asset base may not be within the bank itself. It may be within the business peripheries of our customers; their establishments, stocks. tea factories, tea estates farms, agriculture produce, they are included in this three trillion asset base.
‘This financial number of BOC represents all sectors of the economy. That is why we are proud of the increase of our asset base and that is why I said our asset base reflects on the nation economy and not just ourselves. We will be expanding on this value in the future as well contributing to the national economy in a meaningful way,” he said.
“Although the profit in 2020 was less than in the preceding year, we have made the largest profit in the banking industry this year. Some people say that the bank industry is making high profit. That is not the truth. We have broad based assets compared to other industries. We mange and administer them. What we reap from that business is our profit. We make less than 1% profit – or about 0.87% from each of these assets. There is no other industry operating on such low profit margin. But as the quantity of assets we manage is huge, we can make profit. This is the truth although people criticise us sayong the banks are making a lot of profit,” he said.
Fonseka said so at a media briefing held by the top management of the bank to announce the Bank’s Financials for the year 2020.
BOC chairman Kanchana Ratwatte speaking at the event said that the bank ended a strenuous year with undisputed leadership position, keeping spotlight on economic revival.
“Bank of Ceylon has once again stamped its resilient leadership position by navigating an exhausting year carefully, but with great strength, continuously powering the wheels of the Sri Lankan economy despite Year 2020 was a year of many unforeseen challenges”, Ratwatte said.
BOC General Manager D.P.K. Gunasekera said that the Bank partnered with the Central Bank of Sri Lanka to maintain the dollar-rupee exchange rate with the backing of foreign remittances it received from migrant workers.
Amidst these unexpected challenges, the bank’s operating profit stood at LKR 29 billion and a reported LKR 23.6 billion as Profit before Tax (PBT) for the year 2020, moving forward with stable performance, while managing headwinds caused by low interest rates, cashflow deferments and operational restrictions. Profit After Tax (PAT) for the year ended was LKR 17.8 billion. The bank’s assets base grew by 24% to LKR 2.9 trillion, primarily backed by an increase of 28% in the loan book.
Reaching another milestone, the bank’s loan book crossed the LKR 2.0 trillion mark during the year and closed with LKR 2.1 trillion gross loans and advances to customers. Both government and private sector lending contributed to growth during the year, while working capital and personal lending showed a boost in all segments, including retail and corporate financing.
The bank’s deposit base (more than 23% of the industry) increased during the year despite low interest rates. The bank’s deposit base of LKR 2.5 trillion represents 35% of the current and saving deposit (CASA) base, which generates funds at low cost. During 2020 the bank successfully executed issuance of its first Additional Tier 1 (AT1) bond, generating LKR 15.0 billion ATI capital. The bank’s Tier I Capital and Total Capital ratio stood at 11.2% and 14.9% respectively by end 2020, which were above regulatory norms. Despite cash flow deferments on loan instalments, the bank was able to maintain better trade -off between liquid assets and liabilities. All liquid level monitoring ratios were maintained positively.
The Delegation of German Industry and Commerce in Sri Lanka (AHK Sri Lanka) proudly facilitated the first-ever Sri Lankan delegation’s participation at Drupa 2024, the world’s largest trade fair for the printing industry and technology. Held after an eight-year hiatus, Drupa 2024 was a landmark event, marking significant advancements and opportunities in the global printing industry.
AHK Sri Lanka played a pivotal role in organising and supporting the delegation, which comprised 17 members from the Sri Lanka Association for Printers (SLAP), representing eight companies from the commercial, newspaper, stationery printing, and packaging industries. This pioneering effort by AHK Sri Lanka not only showcased the diverse capabilities of Sri Lanka’s printing sector but also facilitated vital bilateral discussions with key stakeholders from the German printing industry.
Business
Unveiling Ayugiri: Browns Hotels & Resorts sets the stage for a new era in luxury Ayurveda Wellness
In a captivating reimagining of luxury wellness tourism, Browns Hotels & Resorts proudly unveiled the exquisite Ayugiri Ayurveda Wellness Resort Sigiriya. This momentous occasion, celebrated amidst a vibrant and serene grand opening on the 6th of June, heralds a new chapter in the Ayurveda wellness tourism landscape in Sri Lanka. Nestled amidst 54 acres of unspoiled natural splendour, Ayugiri features 22 exclusive suites and stands out as the only luxury Ayurveda wellness resort in the country offering plunge pools in every room, rendering it truly one-of-a-kind.
The grand opening of Ayugiri Ayurveda Wellness Resort was an enchanting event, where guests were captivated by the melodies of flutists and violinists resonating through Sigiriya’s lush landscapes. As traditional drummers and dancers infused the air with vibrant energy, Browns Hotels & Resorts’ CEO, Eksath Wijeratne, Kotaro Katsuki, Acting Ambassador for the Embassy of Japan and General Manager, Buwaneka Bandara, unveiled the resort’s new logo, marking a significant moment witnessed by distinguished guests from the French Embassy, Ayurveda and wellness enthusiasts along with officials from the Sigiriya area, LOLC Holdings and Browns Group.
“Our strategic expansion into wellness tourism with Ayugiri Ayurveda Wellness Resort Sigiriya symbolises a significant milestone for Browns Hotels & Resorts. Wellness tourism has consistently outperformed the overall tourism industry for over a decade, reflecting a growing global interest in travel that goes beyond leisure to offer rejuvenation and holistic well-being. By integrating the timeless wisdom of Ayurveda with modern luxury, we aim to set a new standard in luxury wellness tourism in Sri Lanka. Whether your goal is prevention, healing, or a deeper connection to inner harmony, Ayugiri offers a sanctuary for holistic well-being” stated Eksath Wijeratne.
Ayugiri encapsulates the essence of life, inspired by the lotus flower held by the graceful queens of the infamous Sigiriya frescoes. Just as the lotus emerges from the murky depths, untainted and serene,
Ayugiri invites guests on a journey of purity and rejuvenation, harmonised with a balance of mind, body and spirit, the essence of nature, echoes of culture and the wisdom of ancient Ayurvedic healing.
HNB General Insurance, one of Sri Lanka’s leading general insurance providers, has been honored as the Best General Bancassurance Provider in Sri Lanka 2024 by the prestigious Global Banking and Finance Review – UK.
The esteemed accolade underscores HNB General Insurance’s unwavering commitment to excellence and its outstanding performance in the field of bancassurance. Through dedication and hard work, the HNB General Insurance team has continuously endeavored to deliver innovative insurance solutions, cultivate strong relationships with banking partners, and provide unparalleled service to customers nationwide. This recognition is a testament to the team’s dedication and relentless pursuit of excellence in the bancassurance business.
“We are honored to receive this prestigious award, which reflects our team’s tireless efforts and dedication to delivering value-added insurance solutions and exceptional service through our bancassurance partnerships,” said Sithumina Jayasundara, CEO of HNB General Insurance. “This recognition reaffirms our position as a trusted insurance provider in Sri Lanka and motivates us to continue striving for excellence in serving our customers and communities.”
US sports envoys to Lanka to champion youth development
Rahuman questions sudden cancellation of leave of CEB employees
