Business
Nations Trust Bank continues resilient performance
Despite the challenging business environment, the Bank continued its planned “K shaped” recovery strategy by increasing the loan portfolio by LKR 20 billion recording an increase of 10% during the quarter. Nations Trust Bank continued to provide working capital loans under the “Saubhagya” scheme introduced by the government to assist customers across all segments.
Understanding the importance of assisting the adversely impacted businesses for their revival and to rebuild of businesses and livelihoods, the bank contributed over LKR 19 billion new credit facilities under its own revival fund “Nations Diriya” scheme which is dedicated to extending financial support to key industries, enabling such businesses to recommence and rebuild their business operations.
Furthermore, the bank also offered special payment relief schemes and repayment plans for the existing borrowers in addition to the Central Bank mandated moratorium schemes with low interest rates and restructured repayment plans for some of the identified industries and businesses segments.
Nations Trust Bank raised $25 million from IFC during the quarter to support Sri Lankan SME businesses with improved access to critical working capital to continue operations and preserve lives and livelihoods. Over the years, IFC-NTB partnership has helped create a promising future for many small businesses across Sri Lanka, opening new markets and opportunities and creating new vistas.
Essential banking services continued to be provided despite some parts of the country being isolated to mitigate a third wave of COVID-19 post Sinhala and Tamil New Year. During these unprecedented times the investments made on digital platforms have assisted all key stakeholders to stay connected and conduct business while ensuring their safety in carrying out day to day banking activity by having access to the bank at their fingertips. In-person meetings were converted to organization-wide virtual meetings adhering to all safety protocols.
PCR and Antigen tests for identified staff were undertaken by the bank at regular intervals ensuring the safety of staff and customers. Special staff transportation at concessionary rates were arranged during the pandemic for staff to conveniently commute to work as an additional safety measure. The bank ensured all safety protocols are implemented in close consultation with the public health authorities, across the network.
Despite subdued economic conditions due to the pandemic, the group recorded a Profit Before Tax growth of 39% for the 3 months ended 31st March 2021 compared to previous year.
Net Interest Income continued to decline primarily due to the reduction in the market interest rates while interest rate ceilings introduced by the regulator impacted some business portfolios. Yields on loans reduced by 370bps in line with the fall in AWPLR by 350 bps supporting the loan growth and the economic recovery efforts. A reduction in yields in the FIS portfolio, after the profits taken on the high yielding securities, further aggravated the net interest income decline. However, the improvement of CASA ratio to 35% as at end March 2021 from 29% as at end March 2020 helped partially offset the decline in interest margins during the period.
Gains on trading FX increased as a result of FX funding swaps with a higher depreciation of the rupee during the current period in contrast to the depreciation during the same period last year. The bank also benefited with trading profits on its’ fixed income securities portfolio with the fall in market rates.
Suspension or refund of certain charges by the bank, considering the current difficulties faced by customers due to the COVID-19 pandemic, negatively impacted the bank’s fee-based income. Cards income declined on account of a decrease in card spend due to changes in customer behavior patterns owing to the restrictions in mobility and overseas travel. A drop in discretionary spend was visible due to these phenomena. However, a positive trend could be seen in Trade Finance related income with the increase in some of the Trade Finance related activities. (NTB)
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.”
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