Financial Times

NTB reports strong first half, SL A- Fitch rating
Nations Trust Bank (NTB) has announced a strong first half performance, posting a net profit of Rs. 143.8 million compared to Rs. 8.3 million in the first half of 2002.

Revenues from fixed income securities trading contributed significantly to the bottom line, a statement said.

Total business turnover grew to Rs. 1.1 billion compared with Rs. 360 million in the first half of 2002, with deposits increasing by 81% to reach Rs. 5.8 billion.

With the acquisition of Waldock Mackenzie Ltd in 2002, the asset base has increased to Rs. 15.9 billion, while net loans and advances increased 93% to Rs. 6.1billion from Rs. 3.2 billion.

The recently concluded Rights Issue of the Bank has increased the shareholder funds of the group to Rs. 1.2 billion and the capital adequacy ratio of the bank is now 16.8 percent.

The Group also has a favourable Non-performing Loans ratio of 4.5 percent as at June 2003.

Nations Trust Bank is promoted by the John Keells Group and the Central Finance group, together with the International Finance Corporation (IFC). NTB also announced that Fitch Ratings Lanka Ltd had assigned a SL A- (A minus) rating, for Implied Long-term Unsecured Senior Debt of Nations Trust Bank.

SL A- Long Term rating denotes a low expectation of credit risk, with the capacity for timely payment of financial commitments being considered strong.

"This capacity may, nevertheless, be more vulnerable to changes in circumstances or in economic conditions than is the case for higher ratings," a Fitch Ratings statement said.

Fitch in its report highlighted that - "Nations Trust Bank (NTB) is one of the new generation commercial banks. A well experienced and effective management team, has complimented its innovative approach. NTB's success, to a large extent, in achieving its objectives and ability to grow its business segments at the expense of its competition, could in part be attributed to this factor.

"NTB has used customised products and service quality to compete.

During a short period the bank has built a track record as a significant player in structuring and placing debt on account of customers, and successfully used this as an entry strategy to establish profitable relationships with large customers, which otherwise would not have been possible given NTB's size. "NTB has pursued an aggressive but selective growth strategy since its inception.

NTB appears to have a reasonably sound risk management framework, with a good information system, reasonable tools, methodologies and monitoring mechanisms. Over the long term NTB expects to evolve into a 'total financial service provider.”

This would include offering financial services such as insurance, equity brokerage, etc.

The bank's management envisages considerable consolidation in the banking industry within the next few years and expects to be one of the top five players under such an environment."

Bates marks 10 years as parent body joins fold of WPP
Bates Strategic Alliance, one of Sri Lanka's leading advertising agencies, said last week that Cordiant Communications Group, which owns Bates worldwide and 141 worldwide, had joined the fold of WPP, the world's third largest marketing communications holding company, which may now move up to second place in the world rankings.

WPP also owns JWT, Ogilvy & Mather, Young & Rubicam, Red Cell and several other marketing communications agencies.

Martin Sorell, CEO of WPP, told Cordiant staff that, "All of us at WPP are convinced of the major opportunities that Cordiant presents - the opportunity to develop common clients; the opportunity to develop 141, a major marketing services company; the opportunity to develop Healthworld, a major healthcare company; the opportunity to develop Bates in Asia and Latin America, a leading business in the fastest growing economies of the world." Bates Strategic Alliance, the local affiliate, also celebrates its 10th anniversary this year and is well placed among the country's leading agencies with a prestigious list of local and multinational clients and with a new vision for the next ten years.

National Equity Fund records 25.86% return
The flagship National Equity Fund (NEF), a balanced fund managed by National Asset Management Ltd (NAMAL), has recorded a 25.86% total return to its investors during the year ended 31st March 2003, against a stock market change of 19.7% measured by the All Share Price Index (ASPI) in the same period.

"It is a pleasant recovery for the second consecutive year for the fund after a few years of depressed conditions that prevailed in the stock market," NAMAL said in a statement.

NEF has so far distributed Rs. 9.25 per unit to its unit holders by annually declaring dividends out of its realized income. Fund managers increased the exposure to the stock market from 73% at the beginning of the year to 78% by March 2003. The increase in exposure to stocks was carried out while assessing the potential risks to investments in the capital market due to internal and external factors.

The increase in stock value and appreciation of bond values due to the decline in interest rates helped the fund to outperform the stock market.

"Furthermore the improved stock market conditions in the last three months ending June 2003 has substantially increased the unit value of the fund thus enhancing the overall returns to the investors in the NEF," the release said.

Sub-committees for The Sunday Times Biz Club
At the recently held annual general meeting of The Sunday Times Business Club, the following committees with specific tasks were elected for the 2003/04 year:

Committee - Membership Development/Drive: Niroshini Gulawita (chair), Varuna Ratnaweera, Chandra Sri Tilakaratne, Anura Perera and Razan Rauff.

Committee - Social Development Projects: Chaturanga Perera (chair), Anura P. Perera, Meloshini Rangala, Michael Benedict and Sanjeewa Samaranayake.

Committee - Club Social Activity Development: Waruna Illukpitiya (chair), Farzana Khan, Denver Rozairo, Sampath Kulathunga and Fazlah Bahaudeen.

Committee - Membership Value Additions: Suriya Bibile (chair), Dilantha Fernando, Senaka Weerasekera, Dilani Perera and Thusitha Ediriweera. Committee - Marketing/Fund Raising Projects: Dharshana Senerath (chair), Mahesha Ranasoma, P. Pratheepan, Thilanka de Zoysa and Viranjan Karunaratne.

Global access to Swadeshi through website
Swadeshi Industrial Works Ltd, the country's pioneer in the herbal personal care products sector, recently launched its own website providing Sri Lankans as well as potential international customers with easy access to information on the company and its products.

Visitors to www.swadeshiherbal.com would be able to read about Swadeshi's 62-year history, achievements, its vision and mission as well as the company's community relations initiatives. They could also browse through descriptions of the company's export products, such as Rani Sandalwood soap, Khomba (Margosa soap), Khomba Baby (Herbal baby soap) and Apsara Venivel (Apsara Calumba Wood soap). Commercial Director of Swadeshi, Chulo Samarasinghe said: "Swadeshi is a company with a firm belief in preserving heritage, culture, family values and traditional herbal concepts. We believe the website would be an ideal means of taking this message to the Lankan market as well the international arena."

Four A's endorse Code of Ethics
The Annual General Meeting of the Accredited Advertising Agencies Association, the ad industry body better known as the Four A's, was held at the Galle Face Hotel recently where a Code of Ethics was endorsed.

In addition to electing the new Board of Directors for the coming year, the meeting saw three other significant steps being taken.

Former ad-man and now Governor of the Southern Province, Kingsley Wickremaratne presided over the honouring of three of Sri Lanka's "advertising giants of the past" - Anandatissa de Alwis, Cyril Masilamani and Ranjit Jayasuriya. Family members were there to collect the posthumous awards presented. The Four A's have proposed to further this initiative by launching an "Advertising Hall of Fame" this year to honour other elder statesmen of the industry.

A Code of Ethics was also signed by the heads of agencies present at the meeting. The Four A's noted that advertising with its high profile and influential impact on society, needed to be practised with sensitivity and restraint, as there was an increasing number of complaints about insensitive, distasteful and misleading advertising. While setting the lead for exemplary practice through the adoption of this Creative Code, the Four A's noted that the existence of the uncontrolled sector of many small-time ad agencies and others who were not a part of the Four A's meant that not all advertising appearing in the mass media could be controlled through the Association's self-regulation initiative. The new Board elected at the AGM are: Kenneth Honter, re-elected as President, Rohan Rajaratnam and Keith Martenstyn, Vice Presidents, Chrishantha Jayasinghe Hony. Secretary, and Keith Wijesuriya, Hony. Treasurer together with Rezani Aziz, Laila Gunasekera, Pradeep Amirthanayagam, Roshni de Saram and Kumar Rajendra as Directors.

The Association also invited several elder statesmen and stateswomen from the industry to form an Advisory Council to secure support and advice of this important group for the activities of the Four A's. Those appointed to the Council are Kingsley Wickremaratne, Reggie Candappa, Shiranee Rubera, Lilamani Dias Benson, Felicia Dean, Melville Assauw, Soma Ahangama, Ryan Jayatunga and Nimal Gunewardena.

IPM chief to address Singapore HR meeting
Janaka Kumarasinghe, President of the Institute of Personnel Management of Sri Lanka, will be addressing the Singapore Regional Conference organized by the Singapore Human Resources Institute on August 25.

The theme of the conference is Harnessing Human Capital Key to sustainable competitive advantage. Kumarasinghe, General Manager (Human Resources), Suntel Ltd, will speak on "Regional Sharing - Talent Management in Sri Lanka".

The invitation has been extended after the successful conclusion of Sri Lanka's National HR conference which was attended by delegates from the UK, India, Singapore and Australia and locals numbering around 600.

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