Sun, 26 Jun 2022 Today's Paper

Dialog to shrink brick-and-mortar financial services of Colombo Trust Finance

16 October 2017 12:02 am - 0     - {{hitsCtrl.values.hits}}

A A A

With the acquisition of Colombo Trust Finance PLC (CTF) in September, Dialog Axiata PLC has sent a strong signal to the Lankan banks and finance companies that they should be ready to face their traditional brick-and-mortar business models being severely challenged during the next 5 to 10-year period. 


After acquiring 80.34 percent of CTF, Dialog said in its mandatory offer document, which offered the balance 19.66 percent shareholders the choice to sell at Rs.28.70 a share, the new management would significantly curtail its in-branch lending and deposit portfolios to open room for digital financial services. 


“The offeror (Dialog) expects to utilize the existing fixed assets of Colombo Trust Finance and where required would make investments in technology in order to facilitate business operations under digital financial services. 

However, Dialog does not intend to continue with existing product portfolio offered by CTF and plans to significantly curtail and restructure the existing loan portfolio and deposits”, the document said adding that the employees would be retained.  CTF had a loan book of little above Rs.1.1 billion and a deposit base of Rs.601 million by the end of June 30, 2017. 


Dialog will run the company as a standalone business entity managed independently under the management appointed by them.  


Dialog, can command the largest market in the financial services industry in Sri Lanka when its advanced fintech enables its 11.8 million subscribers to deposit, transfer, withdraw and apply for loans or an insurance policies through hand-held devices.  


Currently eZ Cash—  Dialog’s mobile payment service and the country’s first— allows its users to send or receive money from one mobile phone user to another.  


In its 5th year in operation, eZ Cash has secured over 2.8 million mobile payment subscribers from across Etisalat, Hutch and Dialog mobile networks.


However, with the acquisition of CTF, Dialog can bring together advanced digital connectivity and cutting-edge fintech to deliver a multitude of financial services products, not limiting to just payments, creating true financial inclusivity in Sri Lanka.   Dialog acquired 80.34 percent stake in CTF this September from Cargills Bank Limited for a sum of Rs.1.07 billion.


CTF is a licensed finance company with an asset base of Rs.1.3 billion and for the quarter ended in June 30, 2017 (1Q18), the company reported an after-tax profit of Rs.2.2 million, down 41 percent from the same period last year.  Meanwhile, Dialog said that they would increase the core capital of the bank up to the regulatory minimum required.  The Central Bank wants all licensed finance companies to raise its core capital base to Rs.2.5 billion from the current Rs.400 million on a staggered basis i.e. up to Rs. 1.0 billion by January 1, 2018 and by a half a billion every year until January 1, 2021.  Currently the CTF’s core capital base stands at around Rs.450 million. 

 

Order Gifts to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Vegetables, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.

Sell your vehicle & house fast with hitad.lk only cost is Rs.400, Advertise in Hitad.lk for free to sell your mobile phone. Want to sell your Pet, Advertise for Free in hitad.lk Search for Houses in Sri Lanka and find the best place through Hitad.lk find your best tuition place. Find the best partner for you, visit hitad.lk Find anything at any time hitad.lk.

  Comments - 0

Order Gifts to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Vegetables, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.

 

Sell your vehicle & house fast with hitad.lk only cost is Rs.400, Advertise in Hitad.lk for free to sell your mobile phone. Want to sell your Pet, Advertise for Free in hitad.lk Search for Houses in Sri Lanka and find the best place through Hitad.lk find your best tuition place. Find the best partner for you, visit hitad.lk Find anything at any time hitad.lk.


Add comment

Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Reply To:

Name - Reply Comment




Order Gifts to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Vegetables, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.

 

Sell your vehicle & house fast with hitad.lk only cost is Rs.400, Advertise in Hitad.lk for free to sell your mobile phone. Want to sell your Pet, Advertise for Free in hitad.lk Search for Houses in Sri Lanka and find the best place through Hitad.lk find your best tuition place. Find the best partner for you, visit hitad.lk Find anything at any time hitad.lk.


Mirihana land reclamation project leaves farmers fuming

At present reclamation activities are underway at an 80-acre paddy land close

Is there a solution? Sustainable Fuel Bill for road transport

There is a great mismatch in spending between Sri Lanka’s total imports and

Aloka Pooja at Thanthirimale courtesy Wijeya Newspapers

The historical Thantirimale Raja Maha Viharaya, which associates itself with

Lessons from the fiasco over the detention of ‘Aeroflot’

As if Sri Lanka did not have enough problems, the government last week let an