Fitch Ratings Lanka has affirmed the National Long-Term Ratings on five small and mid-sized Sri Lankan banks.
The banks are Nations Trust Bank PLC (NTB), Pan Asia Banking Corporation PLC (PABC), Union Bank of Colombo PLC (UB), SANASA Development Bank PLC (SDB) and Amana Bank PLC (Amana).
The affirmations follow Fitch’s periodic review of small and mid-sized Sri Lanka banks and are driven by the banks’ intrinsic profiles.
Fitch expects the banks’ capitalisation to remain thin in the medium term, as they are likely to sustain a strong increase in loans.
PABC, SDB and Amana infused capital to meet their respective minimum regulatory core capital levels.
The impact of the implementation of SLFRS 9 in 2018 could also significantly reduce the banks’ capital positions.
NTB’s ratings reflect its declining capitalisation, modest franchise and high product concentration
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