Financial Times

Corporate earnings soar this year

Corporate earnings this year is seen sharply rising judging from some of the company results released so far.

Last week saw Hatton National Bank (HNB) and Aitken Spence - both blue chip groups - recording phenomenal profits' growth for different quarters of their financial year. Seylan Bank, riding on a wave of confidence in the business community, reported its initial public issue being oversubscribed within hours of its opening.

HNB said first half pre-tax profit rose to Rs. 707 million from Rs. 210 million in the corresponding period of 2002. Post-tax profit was Rs. 576 million against Rs. 175 million reflecting a 236 percent increase in pre-tax and a 226 percent rise in post-tax profits.

Aitken Spence reported a net profit of Rs. 150 million for the first quarter of its current year which included a profit of Rs. 155.5 million after selling off its 25 percent stake in Union Assurance Ltd.The company recorded a turnover of Rs. 1.64 billion for the quarter while group-operating profits rose to Rs. 356.6 million.

Seylan Bank's public offer of Rs. 500 million worth of shares at Rs. 25 each was taken up in the first few hours after the IPO opened last week. The fresh capital is to be used for branch and capacity expansion as well as for medium to long term lending.