The Investor Sentiment - Equity and investments forum for Sri Lankans
Search
 
 

Display results as :
 


Rechercher Advanced Search

Latest topics
» Coronavirus Updates
Sri Lanka bank bad loans could double; pharma, construction pressured: HNB chief EmptyToday at 10:49 am by nihal123

» MARKET HOLIDAY ON 30TH MARCH 2020
Sri Lanka bank bad loans could double; pharma, construction pressured: HNB chief EmptyYesterday at 10:09 pm by කිත්සිරි ද සිල්වා

» Thread for News on CSE and SL Economy
Sri Lanka bank bad loans could double; pharma, construction pressured: HNB chief EmptyYesterday at 9:20 pm by The Invisible

» Power of Social Media
Sri Lanka bank bad loans could double; pharma, construction pressured: HNB chief EmptyYesterday at 1:19 pm by කිත්සිරි ද සිල්වා

» මනුස්සකම
Sri Lanka bank bad loans could double; pharma, construction pressured: HNB chief EmptyYesterday at 10:10 am by LSE

» 450 Ivy League courses you can take online right now for free
Sri Lanka bank bad loans could double; pharma, construction pressured: HNB chief EmptySat Mar 28, 2020 2:32 am by pjrngroup

» Thread for News on International Markets
Sri Lanka bank bad loans could double; pharma, construction pressured: HNB chief EmptyFri Mar 27, 2020 4:12 pm by The Invisible

» අය කළ ණය වාරික නැවත ලබා දෙනවා – මහජන බැංකු සභාපති කියයි
Sri Lanka bank bad loans could double; pharma, construction pressured: HNB chief EmptyFri Mar 27, 2020 12:02 pm by nihal123

» මේ දුප්පත් රටට ඔබේ ජීවිතය බේරලා දෙන්න උදව් කරන්න.
Sri Lanka bank bad loans could double; pharma, construction pressured: HNB chief EmptyThu Mar 26, 2020 4:26 pm by malanp

» Coronavirus COVID-19 Live update
Sri Lanka bank bad loans could double; pharma, construction pressured: HNB chief EmptyWed Mar 25, 2020 7:59 pm by nihal123

» Anytime Data
Sri Lanka bank bad loans could double; pharma, construction pressured: HNB chief EmptyWed Mar 25, 2020 4:07 pm by pjrngroup

» Films - To Watch List
Sri Lanka bank bad loans could double; pharma, construction pressured: HNB chief EmptyWed Mar 25, 2020 12:05 pm by yellow knife

» US Embassy urges Americans in Sri Lanka to leave
Sri Lanka bank bad loans could double; pharma, construction pressured: HNB chief EmptyWed Mar 25, 2020 8:16 am by The Invisible

» Oil, Gold & Silver Prices
Sri Lanka bank bad loans could double; pharma, construction pressured: HNB chief EmptyTue Mar 24, 2020 9:59 pm by කිත්සිරි ද සිල්වා

» Why we need to practise social distancing
Sri Lanka bank bad loans could double; pharma, construction pressured: HNB chief EmptyTue Mar 24, 2020 8:44 pm by chutiputha

» මුළු දිවයිනටම ඇඳීරි නිතිය
Sri Lanka bank bad loans could double; pharma, construction pressured: HNB chief EmptyTue Mar 24, 2020 8:17 pm by chutiputha

» නමක් ගමක් දන්නෙ නෑ රත්තරන් මනුස්සයෙක්
Sri Lanka bank bad loans could double; pharma, construction pressured: HNB chief EmptyTue Mar 24, 2020 6:01 pm by nihal123

» Amazon today cancelled the subscription of books and audio stories
Sri Lanka bank bad loans could double; pharma, construction pressured: HNB chief EmptyTue Mar 24, 2020 5:33 pm by කිත්සිරි ද සිල්වා

» ජනපතිගෙන් ජනතාවට සහන
Sri Lanka bank bad loans could double; pharma, construction pressured: HNB chief EmptyMon Mar 23, 2020 8:59 pm by කිත්සිරි ද සිල්වා

» Sri Lanka asks telecos to give emergency credit to keep in touch in Coronavirus fight
Sri Lanka bank bad loans could double; pharma, construction pressured: HNB chief EmptyMon Mar 23, 2020 7:35 am by The Invisible

» කොටස් වෙළෙඳපොළ හෙට පැය 03කට විවෘත කෙරේ. හැකි නම් නිවසේ සිට වැඩ කරන්න
Sri Lanka bank bad loans could double; pharma, construction pressured: HNB chief EmptyMon Mar 23, 2020 7:18 am by The Invisible

» SAMP.N0000 (Sampath Bank PLC)
Sri Lanka bank bad loans could double; pharma, construction pressured: HNB chief EmptySun Mar 22, 2020 7:52 am by The Invisible

» INDUSTRIAL ASPHALTS (CEYLON) PLC (ASPH.N0000)
Sri Lanka bank bad loans could double; pharma, construction pressured: HNB chief EmptySat Mar 21, 2020 2:27 pm by serene

» Obituary Notice.
Sri Lanka bank bad loans could double; pharma, construction pressured: HNB chief EmptySat Mar 21, 2020 1:13 pm by කිත්සිරි ද සිල්වා

» Sri Lanka makes mini-budget till May 2020 under Presidential powers
Sri Lanka bank bad loans could double; pharma, construction pressured: HNB chief EmptySat Mar 21, 2020 9:49 am by The Invisible

» හෝමාගම රෝහලත් කොරෝනා රෝගීන් සඳහා වෙන් කරයි
Sri Lanka bank bad loans could double; pharma, construction pressured: HNB chief EmptySat Mar 21, 2020 9:43 am by nihal123

» People first, economy next, says top economist
Sri Lanka bank bad loans could double; pharma, construction pressured: HNB chief EmptyFri Mar 20, 2020 9:59 am by Backstage

» කොටස් වෙළෙඳපොළ ගනුදෙනු හෙට යළි ඇරඹෙයි
Sri Lanka bank bad loans could double; pharma, construction pressured: HNB chief EmptyFri Mar 20, 2020 8:34 am by malanp

» ඉන්දීය අගමැති මුළු රටටම ඇඳිරි නීතිය පනවයි
Sri Lanka bank bad loans could double; pharma, construction pressured: HNB chief EmptyFri Mar 20, 2020 8:05 am by The Invisible

» Happy Birthday
Sri Lanka bank bad loans could double; pharma, construction pressured: HNB chief EmptyFri Mar 20, 2020 4:21 am by nihal123

» Sri Lanka to fix fuel prices, build energy stability fund amid COVID-19 crude collapse
Sri Lanka bank bad loans could double; pharma, construction pressured: HNB chief EmptyThu Mar 19, 2020 2:36 pm by කිත්සිරි ද සිල්වා

» නිවසේ සිට වැඩ කරන සතියක් : රජය සහ පුද්ගලික අංශය දෙකටම
Sri Lanka bank bad loans could double; pharma, construction pressured: HNB chief EmptyThu Mar 19, 2020 2:31 pm by The Invisible

» Sri Lanka elections delayed over Coronavirus
Sri Lanka bank bad loans could double; pharma, construction pressured: HNB chief EmptyThu Mar 19, 2020 2:27 pm by The Invisible

» Sri Lanka’s market closed over Coronavirus on March 19
Sri Lanka bank bad loans could double; pharma, construction pressured: HNB chief EmptyThu Mar 19, 2020 9:31 am by The Invisible

» Sri Lanka stock market closed Tuesday in Coronavirus holiday
Sri Lanka bank bad loans could double; pharma, construction pressured: HNB chief EmptyThu Mar 19, 2020 9:23 am by The Invisible

» Sri Lanka President orders 6-month debt moratorium, 4-pct working capital
Sri Lanka bank bad loans could double; pharma, construction pressured: HNB chief EmptyWed Mar 18, 2020 3:17 pm by slstock

» පුත්තලම, හලාවත ඇතුළු ප්‍රදේශ කිහිපයකට පොලිස් ඇඳිරි නිතිය
Sri Lanka bank bad loans could double; pharma, construction pressured: HNB chief EmptyWed Mar 18, 2020 2:45 pm by The Invisible

» Sri Lanka RPCs to pay Rs.1,000 daily wage on higher productivity, trade unions yet to agree
Sri Lanka bank bad loans could double; pharma, construction pressured: HNB chief EmptyTue Mar 17, 2020 3:03 pm by The Invisible

» Sri Lanka Central Bank Governor asks markets to remain calm
Sri Lanka bank bad loans could double; pharma, construction pressured: HNB chief EmptyTue Mar 17, 2020 2:59 pm by The Invisible

» Dividend Announcements
Sri Lanka bank bad loans could double; pharma, construction pressured: HNB chief EmptyTue Mar 17, 2020 12:59 pm by yellow knife

» කන්දකාඩු නිරෝධායන මධ්‍යස්ථානයෙන් ඇසුණු කතාවක්
Sri Lanka bank bad loans could double; pharma, construction pressured: HNB chief EmptyMon Mar 16, 2020 3:22 pm by nihal123

» Cardinal Seeks UN Probe on China’s Coronavirus
Sri Lanka bank bad loans could double; pharma, construction pressured: HNB chief EmptyMon Mar 16, 2020 7:43 am by The Invisible

» සඳුදා රජයේ නිවාඩු දිනයක්
Sri Lanka bank bad loans could double; pharma, construction pressured: HNB chief EmptySun Mar 15, 2020 10:10 am by The Invisible

» Contagion (2011)
Sri Lanka bank bad loans could double; pharma, construction pressured: HNB chief EmptyFri Mar 13, 2020 10:22 am by Backstage

» රටවල් තුනක සිට ලංකාවට ඇතුල්වීම අද සිට තහනම් කරයි
Sri Lanka bank bad loans could double; pharma, construction pressured: HNB chief EmptyFri Mar 13, 2020 10:12 am by nihal123

» කොරෝනා වෛරසය ලොව ධනවත්ම පුද්ගලයාගේ වත්කම එක් රැයක දී ඩොලර් බිලියන 7කින් පහළ දමයි
Sri Lanka bank bad loans could double; pharma, construction pressured: HNB chief EmptyThu Mar 12, 2020 11:40 pm by nihal123

» දිවයිනේ සියලුම පාසැල් අප්‍රේල් 20 දක්වා වසා දැමේ
Sri Lanka bank bad loans could double; pharma, construction pressured: HNB chief EmptyThu Mar 12, 2020 8:05 pm by nihal123

» 2020 පෙබරවාරි මාසයේ දී සංචාරකයින්ගේ පැමිණීම 17.7%කින් පහළට. චීනුන් 92%කින් අඩුවෙලා
Sri Lanka bank bad loans could double; pharma, construction pressured: HNB chief EmptyThu Mar 12, 2020 11:03 am by කිත්සිරි ද සිල්වා

» Browns Investments update
Sri Lanka bank bad loans could double; pharma, construction pressured: HNB chief EmptyThu Mar 12, 2020 10:39 am by The Invisible

» Cartoon Today
Sri Lanka bank bad loans could double; pharma, construction pressured: HNB chief EmptyThu Mar 12, 2020 10:23 am by කිත්සිරි ද සිල්වා

March 2020
SunMonTueWedThuFriSat
1234567
891011121314
15161718192021
22232425262728
293031    

Calendar Calendar

Disclaimer


Information posted in this forum are entirely of the respective members' personal views. The views posted on this open online forum of contributors do not constitute a recommendation buy or sell. The site nor the connected parties will be responsible for the posts posted on the forum and will take best possible action to remove any unlawful or inappropriate posts.
All rights to articles of value authored by members posted on the forum belong to the respective authors. Re-using without the consent of the authors is prohibited. Due credit with links to original source should be given when quoting content from the forum.
This is an educational portal and not one that gives recommendations. Please obtain investment advises from a Registered Investment Advisor through a stock broker

Sri Lanka bank bad loans could double; pharma, construction pressured: HNB chief

Go down

Sri Lanka bank bad loans could double; pharma, construction pressured: HNB chief Empty Sri Lanka bank bad loans could double; pharma, construction pressured: HNB chief

Post by The Invisible on Fri Oct 26, 2018 10:34 am

ECONOMYNEXT - Tighter international accounting rules could result in Sri Lanka banks doubling provisioning for non-performing loans in 2018 which will erode profits already impacted by sluggish economic growth, listed Hatton National Bank's Managing Director Jonathan Alles has said.

"I would almost think impairments are going to double this year and that is going to have a huge impact on profitability," Alles told a business forum organized by Asia Securities, a Colombo-based equities brokerage.

Under IFRS 9 banks will be required to assess future cash flows of their lending portfolios, unlike in the past where banks measured credit profiles of borrowers based on historic accounting records.

"Regulator and auditors will test our lending portfolios for anything weak, so it will be challenging for us to maintain certain portfolios that we manage carefully now

"IFRS 9 puts restrictions and pressure on us and non-performing loans ratios will rise because of this and not only because borrowers are failing to service their loans".

Central Bank Governor Indrajit Coomaraswamy said Non-performing loans had already risen to 3.5 percent from a low of 2.5 percent last year, but it was below historical trends.

Weak economy

Weaknesses in macro fundamentals have seen banking sector non-performing loans increase with particular sectors more affected than others.

"Some of the receivables due from the construction industry are not coming in as expected, pharmaceuticals are facing tight margins, the trading industry has huge receivables, and agriculture has been having real difficulty over the last few years," Alles said.

Alles said banks have taken measures to stem the non-performing loans growth and as a result credit growth could slow down in the short to medium term.

"You'll see loan growth probably slowing down a little bit in order that we reverse this situation because what you don't want is the banking industry showing signs of weakness," he said.

Hatton National Bank has considerable exposure to small and medium businesses and also engages in micro finance.

"We are feeling the pressure because the cost of recovery is higher at those levels.

We understand the difficulties our customers are going through, and we are giving them more time to settle their loans," Alles said.

However, auditors and regulators are not too concerned about the difficult times and continue to apply the norms, he said.

IFRS 9 will force banks to revisit their lending policies, even to larger corporates.

"Bank will have to raise the bar on credit standards. A knee-jerk reaction to IFRS 9 could be more cautious lending leading to lower credit growth" Alles said. (COLOMBO, 25 October 2018)
The Invisible
The Invisible

Posts : 1654
Join date : 2016-11-28
Age : 40

Back to top Go down

Back to top


 
Permissions in this forum:
You cannot reply to topics in this forum