Financial performance commercial bank
- 1. Analysis of Financial Performance of Commercial Bank of Ceylon PLC Presented by Nilam Hallaldeen
- 2. Our Focus Areas The Company Banking Sector Non Financial Information Financial Analysis Conclusion www.company.com
- 3. The company • Started as Eastern Bank Ltd Product Range • Business Structure Overseas • Awards & Achievements 8% Corporate • Strategic Direction 40% Personal 52% www.company.com
- 4. Banking Sector - 2008 • 22 Licensed commercial banks & 14 specialized banks • Market Share • Deposits - Rs. 200 billion • Loans & Advances - Rs. 180 billion 13% • Total Assets - Rs. 254 billion • Industry Dynamics • High Inflation • High Interest rates • High Expenditure • Statutory Reserve Requirement Reduction www.company.com
- 5. Non Financial Information Commercial Sampath HNB NTB Branches 181 114 177 38 Staff 4041 2364 4395 1615 ATMs 346 171 260 47 www.company.com
- 6. Non Financial Information Commercial Sampath HNB NTB Staff/Branch 22 21 25 43 Income/Employee 11 9 8 6 Income/Branch 243 195 210 270 Profit/Employee 1.0 0.6 0.7 0.3 Profit/Delivery 12 8 12 11 centre www.company.com
- 7. Financial Analysis Company LOGO • Profitability Ratios • Asset Management Ratios • Market Investor Ratios • Liquidity Ratios • Debt Management ratios www.company.com
- 8. Profitability Ratios Company LOGO • Net Interest Margin • Return on Shareholders’ Fund (ROE) • Return on Assets • Year on Year Growth • Cost to Income www.company.com
- 9. Net Interest Margin Company LOGO 6 Commercial Sampath Net Interest Margin % 5 HNB NTB 4 3 2 1 0 2004 2005 2006 2007 2008 Financial Year www.company.com
- 10. Return on Shareholders’ Fund (ROE) Company LOGO 25 Commercial Return on Shareholders’ Fund Sampath HNB 20 NTB 15 (ROE) % 10 5 0 2004 2005 2006 2007 2008 Financial Year www.company.com
- 11. Return on Assets Company LOGO 1.8 Commercial 1.6 Sampath Return on Assets % 1.4 HNB NTB 1.2 1 0.8 0.6 0.4 0.2 0 2004 2005 2006 2007 2008 Financial Year www.company.com
- 12. Income Growth Company LOGO 100 Commercial Sampath 80 HNB NTB Income Growth % 60 40 20 0 2004 2005 2006 2007 2008 -20 Financial Year www.company.com
- 13. Cost to Income Ratio Company LOGO 70 Commercial Cost to Income Ratio % 60 Sampath HNB 50 NTB 40 30 20 10 0 2004 2005 2006 2007 2008 Financial Year www.company.com
- 14. Asset Management Ratios Company LOGO • Advance to Deposit & Refinance • Capital Adequacy • Tier I Capital • Tier II Capital • Non Performing Loans (Assets) www.company.com
- 15. Advance to Deposit & Refinance Company LOGO 71 90 NTB 2008 87 HNB Sampath Financial Year 2007 Commercial 2006 2005 2004 0 20 40 60 80 100 Advance to Deposit & Refinance % www.company.com
- 16. Capital Adequacy Ratio- Tier I Capital Company LOGO 12 Commercial Capital Adequacy Ratio – Tier I 11 Sampath 10 HNB NTB 8 8 6 % Statutory Requirement 4 2 0 2004 2005 2006 2007 2008 Financial Year www.company.com
- 17. Capital Adequacy Ratio- Tier I & II Capital Company LOGO 18 Commercial Capital Adequacy Ratio- Tier I 16% Sampath 16 HNB 14 13% NTB 12 Statutory 10 Requirement & II % 8 6 4 2 0 2004 2005 2006 2007 2008 Financial Year www.company.com
- 18. Non - Performing Loans Company (Assets) LOGO 12 Commercial Sampath Non - Performing Loans 10 HNB NTB 8 (Assets) % Industry Average = 6.2 6 4 2 0 2004 2005 2006 2007 2008 Financial Year www.company.com
- 19. Liquidity Ratios Company LOGO • Liquid Fund to Liabilities www.company.com
- 20. Liquid Fund to Liabilities 45 Liquid Fund to Liabilities % Commercial 40 Sampath 35 HNB NTB 30 25 20 CBSL 15 Recommendation 10 5 0 2004 2005 2006 2007 2008 Financial Year www.company.com
- 21. Market / Investor Ratios Company LOGO • Earnings per Share (EPS) • Dividends per Share (DPS) • Price Earning Ratio (P/E) www.company.com
- 22. Earnings per Share (EPS) Company LOGO 25 Commercial Sampath Earnings per Share (EPS) 20 HNB NTB 15 10 5 0 2004 2005 2006 2007 2008 Financial Year www.company.com
- 23. Dividends per Share (DPS) Company LOGO 8 Commercial Dividends per Share (DPS) % 7 Sampath HNB 6 NTB 5 4 3 2 1 0 2004 2005 2006 2007 2008 Financial Year www.company.com
- 24. Price Earning Ratio (P/E) Company LOGO 60 Price Earning Ratio (P/E) Commercial Sampath 50 HNB NTB 40 30 20 10 0 2004 2005 2006 2007 2008 Financial Year www.company.com
- 25. Debt Management Ratios Company LOGO • Debt to Equity • Interest Cover www.company.com
- 26. Debt to Equity Company LOGO 0.70 Commercial 0.60 Sampath HNB 0.50 Debt to Equity NTB 0.40 0.30 0.20 0.10 0.00 2004 2005 2006 2007 2008 Financial Year www.company.com
- 27. Interest Cover Company LOGO 16 Commercial 14 Sampath HNB 12 NTB Interest Cover 10 8 6 4 2 0 2004 2005 2006 2007 2008 Financial Year www.company.com
- 28. The Way forward Company LOGO • Enhancing the customer convenience • Building high performance culture • Expanding to international market (Specially in South Asia) • Prudent growth www.company.com
- 29. Conclusion Company LOGO • The average growth rate of COMB is expected to be 12% during next five years. • The required return on equity is forecasted to be 22% in next five years. • Commercial bank is expected to maintain a payout ratio of 40% during the next five years. www.company.com
Editor's Notes
- #4: – Awards & Achievements The Global Finance Magazine- Best bank in SL, The banker Magazine-Bank of the year in SL, Euromoney Magazine - Bank of the year in SL, Best Bank of Sri Lanka for over 11 years– Best Bank of Sri Lanka for over 11 years Industry Dynamics – ATMs– Business Structure Product Range Expand International operation and widen global presence, enhance delivery channels and product range2008 Annual report page 4
- #5: High Expenditure – Due to the warStatutory Reserve Requirement Reduction - To increase liquidity
- #21: Remove % markStatutory Requirement = ?