Finance

Avurudu deals for ComBank cardholders

The Commercial Bank of Ceylon is once again rewarding its credit and shopping debit cardholders with attractive deals in April giving them more reasons to enjoy shopping in the Avurudu season.

From April 1 to 11, 2012, they will be eligible to receive a 20% discount when they shop at any of the outlets of Spring & Summer, a 15% discount at Fashion Bug, Cool Planet (only for apparels) and Sriyani Dress Point, the bank has announced. Discounts of 10% will be available at CIB shopping centre.

In addition, Commercial Bank has tied up with several merchants in the Eastern Province to benefit cardholders in those areas, providing a 25% discount at Mahanthi Tex and a 20% discount at Barakath Tex, Abdullah Tex, Rafeek Shoe Palace, New Shafi Sons and Vision Pharmacy and Supermarket.

All Credit and Shopping Debit Cards issued in Visa and Mastercard brands will be eligible for these discounts, the bank said.

“As always, Commercial Bank strives to offer the best value proposition to all customers and this promotion has something for everyone,” said Lakshman Perera – Head of Card Centre of Commercial Bank. “We offer the most convenient solution in terms of cards to our valuable customers,” he said.

In addition to these discounts in the Avurudu season, cardholders of Commercial Bank enjoy ‘Comdeals’ which provide discounts on purchases with Shopping Debit and Credit cards of the Bank at over 40 selected merchant outlets. For purchases under ‘Comdeals,’ Credit cardholders enjoy an easy payment scheme entailing zero per cent interest at over 70 selected merchants. Commercial Bank cardholders can also use their cards at 11 restaurants and receive discounts of up to 30%.

Commercial Bank is the largest private bank in Sri Lanka, and the only Sri Lankan Bank listed in the world’s Top 1,000 Banks. It operates a network of 214 service points in Sri Lanka and the country’s single largest network of 507 ATMs. The Bank has been adjudged ‘Best Bank in Sri Lanka’ for 13 consecutive years by ‘ Global Finance’ Magazine and has won multiple awards as the country’s best bank from ‘ The Banker ,’ ‘FinanceAsia, ’ ‘Euromoney ’ and ‘ Trade Finance ’ magazines.

Mercantile Investments and Finance extends presence outside Western Province

Mercantile Investments and Finance PLC popularly known as MI continued its expansion drive in line with its corporate strategy of strengthening its presence outside the Western province.

The company was able to open three new branches in March 2012 which included branches in Chillaw, Embilipitiya and the just opened branch in Horana. Through management's aggressiveness, the company was able to add eight new branches in 2011/12 period alone including branches in districts of Galle, Matara, Kurunagela and Anuradhapura being lucrative locations for business of hire purchase and lease financing. Furthermore, plans are also under way to open a branch in Tissamaharama before the end of the first quarter 12 /13.

The company once again was impressive in its financial results, recording post-tax profits of Rs 623 million for the first half of the financial year ended September 30, 2011.

This sound performance reflected a profit growth of 23 % or Rs 117 million in absolute terms in comparison to previous year same period. MI’s total revenue growth was a significant factor in concluding the period with satisfactory results.

Accordingly, the company's core business income contributed 54 % to total revenue while significant percentage of balance 46 % was provided through non-fee based income namely share trading profits. The relatively greater rise in total income in comparison to the overhead costs improved company's overall cost income ratio which reduced and stood at 30.45 % as at September 30, 2011.

MI displayed a dominant presence in the sector through its management style that stood firm to its fundamentals, deploying focused strategies when necessary supported by a workforce that portrayed unrelenting commitment and effort in reaching corporate objectives.

Despite being in a highly competitive sector, the company through bold measures was able to raise business volumes substantially. As a result, MI's lending levels grew by 58 % in the period under review, while deposits mobilization growth too was commendably up by 40 % in annualized terms enabling the company to reach a total deposit base close to Rs 5 billion.

Through efficient streamlining of credit processes and measures taken to improve the quality of the loan book, MI was able to curtail credit deterioration, despite the said rise in credit volumes. The non- performing lending ratio of MI therefore stood at 3.9 % while non-performing lending in absolute terms reduced by Rs 100 million from a year before.

Furthermore, as at the balance sheet date, the capital adequacy ratios of the company stood imposingly at 23.86 % for core capital ratio and 29.08 % for total capital ratio, almost three times the minimum regulatory requirement, indicative of company's strong capital structure.

It was also commendable yet again for the company this period to emerge as the winner of the prestigious gold award in the “Finance Companies Sector” for the 12th consecutive year at the Annual Report Award ceremony held in December 2011, organized by the Institute of Chartered Accountants of Sri Lanka.