Sri Lanka Equity Forum
Dear Reader,

Registration with the Sri Lanka Equity Forum would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
Sri Lanka Equity Forum

Discussion Forum for Stock Market Investors in Sri Lanka

Submit Post
සිංහල පරිවර්තනය
Search
 
 

Display results as :
 

 


Rechercher Advanced Search

Latest topics

» Wiser's TA Chart Room
by Dr_CSE Today at 4:20 pm

» Market Sell Off
by DS Wijesinghe Today at 4:11 pm

» WHO WILL REFORM THE COUNTRY'S ECONOMY?????????
by samaritan Today at 1:27 pm

» PAN ASIA POWER
by Nuwan Samarawickrama Today at 11:26 am

» AUTODROME PLC
by visvajith Today at 9:24 am

» Construction of 32-storey Renuka Towers begins
by equityhunter Today at 9:02 am

» COMD net assets value
by Dietoday Today at 8:54 am

» What is happening to LLUB?
by TARGET Today at 8:01 am

» AUTODROME PLC
by shaban Yesterday at 9:56 pm

» VONE , is it time to sell or holds
by 2017 Cse Yesterday at 6:15 pm

» The Stock Chat by EquityChamp
by DS Wijesinghe Yesterday at 5:43 pm

» Rupee depreciation and foreign investment
by TuTanKaman Yesterday at 2:13 pm

» AEL @ 19.60
by mtsfernando Yesterday at 11:17 am

» COCR can be attractive
by suku502 Yesterday at 10:33 am

» ALHP WILL MOVE UP SOON
by cse_eagle Yesterday at 10:07 am

» Sampath Bank PLC - A giant awakening
by DS Wijesinghe Yesterday at 9:08 am

» FUTURE GEMS.....
by EquityChamp Yesterday at 7:04 am

» Dividend payments
by alphamm Mon Apr 23, 2018 9:52 pm

» MGT & REEF ????
by Ran49 Mon Apr 23, 2018 8:06 pm

» UBC KEEP WATCHING
by Ran49 Mon Apr 23, 2018 8:04 pm

Forum Disclaimer

The information contained in this forum have been submitted by third parties directly without any verification by us. The information available in this forum is not researched or purported to be complete description of the subject matter referred to herein. We do not under any circumstances whatsoever guarantee the accuracy and completeness information contained herein.

www.srilankaequity.com its blogs, forums, subdomains and/or its affiliates and/or its web masters, administrators or moderators shall not in any way be responsible or liable for loss or damage which any person or party may sustain or incur by relying on the contents of this report and acting directly or indirectly in any manner whatsoever.

Trading or investing in stocks & commodities is a high risk activity. Any action you choose to take in the markets is totally your own responsibility, www.srilankaequity.com its blogs, forums, subdomains and/or its affiliates and/or its web masters, administrators or moderators shall not be liable for any, direct or indirect, consequential or incidental damages or loss arising out of the use of this information. The information on this website is neither an offer to sell nor solicitation to buy any of the securities mentioned herein. The writers may or may not be trading in the securities mentioned.

You are not connected. Please login or register

Sri Lanka Equity Forum » Stock Market Talk » Banking sector growth forcast...

Banking sector growth forcast...

Go down  Message [Page 1 of 1]

1 Banking sector growth forcast... on Tue Jul 11, 2017 12:46 am

Teller

avatar
Moderator
Pioneer stock-broking and equity research firm NDB Securities Ltd. (NDBS) published an update on the outlook of the banking sector along with an analysis on nine listed licensed commercial banks.

This report comes as an update to a comprehensive banking sector report done earlier by NDBS. The update delivers better data, analysis and strategic direction on the overall banking sector environment coupled with CBSL stringent requirements laid out by Basel III. The sector update used publicly available data and expert opinion of industry stakeholders to provide information on one of the key sectors listed on the CSE.

NDBS CEO Prasansini Mendis stated: “The industry is slowly regaining momentum after a challenging year. We withstood 2016 and many more challenging years in the past through best industry practices, expert knowledge on the industry, time efficient service models, in depth risk management and compliance framework. We are now further equipped to serve our clients better with the relocation of our company to a plush new premise at 135, Bauddhaloka Mawatha, Colombo 4 from this month.”

She added, “We as a company strongly believe that in depth research will continue to add value to the investor. Going forward we expect to deliver similar updates in addition to our in-depth macro, sector and counter publications that will complement services delivered by our experienced advisory arm and state of the art IT and back office system.”

NDBS Head of Research Sidath Kalyanaratne stated: “This update is released at a time where CBSL has imposed further stringent capital requirements that’s compliant with BASEL III guidelines. Under the new Basel III guidelines, in addition to the stringent regulations imposed on all LCBs and LSBs, the domestic systematically important banks (with assets over Rs. 500 billion) have been imposed tighter capital requirements to further strengthen the banking system. Most of the banks are in the process of raising equity to strengthen capital ratios and buffers. Despite the strengthening of the regulatory framework, above measures are expected to change the competitive landscape of the banking sector significantly.”

He added, “We won the best stockbroking research team award last year at the capital markets awards 2016 organised by CFA Sri Lanka. Since, we have worked even harder to improve our depth, breadth and quality of research and made increased efforts in sharing our knowledge with the current and potential investment community in our country. We believe this sector update will reflect the industry trends in terms of growth, profitability, risk, stability etc. over the short to medium term.”

Manager – Research Dhinali Peiris stated: “The loan growth of the banking sector recorded 17.7% in 2016. The banks with higher loan share to SME and retail witnessed higher NIM expansion with AWPLR gaining 441 basis points (bps) during 2016. However, going forward we expect a slowdown in demand for new loans due to the impact of monetary and fiscal measures taken by the Government of Sri Lanka (GoSL) in 2016. The banking sector deposits grew by 16.5% in FY16 whilst the average weighted deposit rate (AWDR) increased by 197 bps compared to 2015 where the AWDR was mostly stagnant. This increase caused the CASA of the banking sector to decrease from 40.3% in 2015 to 37.1% in 2016. Further, with the increased consumption taxes, we expect demand for deposits to slow down.”

Dhinali added, “In terms of profitability, we do not expect NIMs to further improve from FY16 levels due to reduction of upward pressure on interest rates coupled with declining CASA and increased competition for deposits. Therefore, with restrained forecasted net interest income growth, we estimate the growth in profitability to be rather moderate over the short term.”

She concluded saying, “High competition, additional capital and leverage requirements amongst smaller banks will threaten their return on equity in the short run. Hence, we continue to support the banking consolidation which will further strengthen the system and improve banks’ access to financing via international capital markets.”

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum