COMB.N0000 (Commercial Bank of Ceylon PLC)

[yellow knifeTop contributor]

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This is an exact quote from Annual report of the bank and what a proud way to present oneself

" Commercial Bank of Ceylon PLC is the largest listed financial institution in Sri Lanka and the most awarded bank in the country. With a market capitalization of around US $ 1 Bn,m it is the 3rd largest of all listed entities in the country and also the only Bank which is ranked amonst the world's top 1,000 banks for the past 5 consecutive years in the country. "

[yellow knifeTop contributor]

Revenue pattern of COMB.N almost similar to the pattern of SAMP.N.

Banks are institutions whose performance is directly affected by fiscal and monetary policies. This may be the reason that make similar patterns.

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[yellow knifeTop contributor]

Revenue of already evaluated banks and leading NBFIs

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[yellow knifeTop contributor]

EPS was steadily growing over past years.

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[yellow knifeTop contributor]

Many big companies which record profit above 2 Billion had to face Super Gain Tax last year and this has affected to Net Asset position in some.

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[yellow knifeTop contributor]

Despite growing EPS , dividends remain almost same.

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[Naked Trader]

Sir, just curios despite it's superior earning compared to other banks and being the darling of the foreigners, why is it still in that poor price level.

[yellow knifeTop contributor]

Dividend comparison with other industries in finance.

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[yellow knifeTop contributor]

Sir, just curios despite it's superior earning compared to other banks and being the darling of the foreigners, why is it still in that poor price level.

Market price of a company does not rely purely on performance. There can be many other reasons.. Can I first finish presenting slices of COMB and answer your question later ?

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Loan and Advances distribution


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[yellow knifeTop contributor]

Loan and Advances by products..

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[yellow knifeTop contributor]

The sheer size of the leasing & HP of COMB is big enough to overcome the entire revenue of big NBFIs.

Further during last two years Banks have absorbed Leasing from big NBFIs.

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[yellow knifeTop contributor]

Big commercial banks have pushed other small bankt to find areas where they do not compete and to earn profits from such areas.

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Even in 2011 COMB was not exposed to gold pawning

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[yellow knifeTop contributor]

As COMB is the biggest listed Finance Intermediary , we can suspect that those not listed have obtained a bigger share of Profit of Banking sector. So its worth while studying BOC and People's Bank


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[yellow knifeTop contributor]

Sir, just curios despite it's superior earning compared to other banks and being the darling of the foreigners, why is it still in that poor price level.

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Yes, market price of a share does not always link with the performance of a company.  Market sentiment, liquidity, selling pressure of a big investor, buying interest of a HNWI, and many other factors will affect to the share price.

[First Guy]

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[Hybrid]

Thanks for the effort in getting these graphs under one thread. Only thing is that most of the transactions went @ 120 and this will move the price up to where it was before the slip-sliding took place.

[sashimaalTop contributor]

Disagree - getting to where it was will take a considerable amount of time !

We have repeatedly warned to AVOID big Banking shares such as this one till Q3 , 2016 as they will underperform in share price appreciation .vs. ASI appreciation.

ASI went from 5800 to 6050+ but COMB didn't appreciate .

These will have there time much later...NOT NOW .

Thanks for the effort in getting these graphs under one thread. Only thing is that most of the transactions went @ 120 and this will move the price up to where it was before the slip-sliding took place.

[Hybrid]

Agree fully. The same goes for JKH.N.

It will takes its own time and ST Traders will not be interested in these. Nevertheless, there aren't any other entities that have a voracious Appitite for investment currently.

Nothng new is happening.
I am longing to see another IPO which is backed by parties with good standing and credentials.

The investment climate may not be conducive for this at this moment. May be in the coming months!

[yellow knifeTop contributor]

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Commercial Bank seems to be a good conservative bank and its Capital Adequacy Ratios are well above Tier 1 expectation of above 5% and Tier 2 expectation of above 10%.



Comparison of capita adequacy with Sampath Bank is shown below


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[yellow knifeTop contributor]

2016

Entire banking sector enjoyed year 2006, the year where it was predicted to be badly affected as banks were expected to not to do leasing. Following chart shows how fruitful that year including the leading commercial bank.

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[yellow knifeTop contributor]

PAT of Commercial bank standing tall against other banks.

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[yellow knifeTop contributor]

Our newest addition , thanks to Jana is Revenue Growth percentage.

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And it seems the whole banking sector expand and shrink with the macro economic factors which are beyond their control.

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[yellow knifeTop contributor]

EPS was continoulsy growing.

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[yellow knifeTop contributor]

Bank declared cash dividend of Rs 4.50 and by share dividend Rs 2.00 and the dividend remains stagnant.

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[yellow knifeTop contributor]

Net Assets Value is slowly picking up.

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