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| Tuesday, 10 June 2003 |
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CSE approves Nations Trust Rights Issue The Colombo Stock Exchange (CSE) approved the rights issue for Nations Trust Bank Limited on June 5, the bank said yesterday. The rights issue entitles shareholders to purchase seven new ordinary shares at a price of Rs 13 per share for every ten existing shares held. The shares are expected to start trading ex-rights as of June 11. The bank has grown rapidly since its inception and has reached its peak potential. The new level of capital after the rights issue will enable the bank to achieve its projected growth targets in the next few years. The proceeds of the rights issue will increase the core capital of Nations Trust Bank from the current level to approximately Rs 1 billion and base capital to Rs 1.1 billion, a bank spokesman said. Subsequent to the rights issue the bank's capital adequacy ratio, which is currently at 10.1 percent, is projected to increase to 16.8 per cent. The bank has performed extremely well during the first quarter of the current year with the total business turnover growing to Rs 548 million compared to Rs 167 million in the first quarter of 2002. Deposits have reached Rs 5.3 billion and with the acquisition of Waldock Mackenzie in 2002, the asset base has increased to Rs 16.6 billion. The steady growth in business volumes has yielded a net profit for the quarter of Rs 83.4 million. The fixed income trading and sales activities of the group made a significant contribution to the results of the first quarter. Nations Trust has expanded its network to increase visibility and presence in key geographical locations. The bank currently has 21 branches and service counters and operates on a central processing basis. The bank has made considerable investments on state-of-the-art IT systems. Going forward the bank will be able to manage significant growth using the same infrastructure thereby optimising its investments, the bank said. |
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