Sri Lankan (CSE) Financials Sector Analysis
UpdatedApr 24, 2024
DataAggregated Company Financials
Companies63
- 7D3.1%
- 3M23.9%
- 1Y34.8%
- YTD16.9%
Over the last 7 days, the Financials industry has risen 3.1%, driven by gains from LOLC Finance of 15%. Meanwhile, Hatton National Bank actually underperformed within the industry, shrinking 6.0% in the last week. In the last 12 months, the industry was up 35%. As for the next few years, earnings are expected to grow by 16% per annum.
Sector Valuation and Performance
Has the Sri Lankan Financials Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Thu, 25 Apr 2024 | LK₨1.4t | LK₨1.1t | LK₨243.0b | 6.7x | 5.7x | 1.3x |
| Sat, 23 Mar 2024 | LK₨1.2t | LK₨1.1t | LK₨243.5b | 6x | 5.1x | 1.2x |
| Mon, 19 Feb 2024 | LK₨1.1t | LK₨1.0t | LK₨244.1b | 5.6x | 4.6x | 1.1x |
| Wed, 17 Jan 2024 | LK₨1.3t | LK₨1.0t | LK₨220.0b | 7x | 5.9x | 1.3x |
| Fri, 15 Dec 2023 | LK₨1.3t | LK₨1.0t | LK₨219.2b | 6.2x | 6.1x | 1.3x |
| Sun, 12 Nov 2023 | LK₨1.4t | LK₨968.6b | LK₨187.2b | 6.9x | 7.2x | 1.4x |
| Tue, 10 Oct 2023 | LK₨1.4t | LK₨952.8b | LK₨182.2b | 6x | 7.5x | 1.4x |
| Thu, 07 Sep 2023 | LK₨1.5t | LK₨952.8b | LK₨182.2b | 6.6x | 8x | 1.5x |
| Sat, 05 Aug 2023 | LK₨1.5t | LK₨893.9b | LK₨168.3b | 8.1x | 9.1x | 1.7x |
| Mon, 03 Jul 2023 | LK₨1.2t | LK₨903.6b | LK₨167.8b | 5.5x | 7.2x | 1.3x |
| Wed, 31 May 2023 | LK₨993.5b | LK₨854.9b | LK₨204.8b | 5.8x | 4.8x | 1.2x |
| Fri, 28 Apr 2023 | LK₨1.0t | LK₨831.9b | LK₨206.6b | 6.4x | 5.1x | 1.3x |
| Sun, 26 Mar 2023 | LK₨1.1t | LK₨832.8b | LK₨206.9b | 7x | 5.4x | 1.3x |
| Tue, 21 Feb 2023 | LK₨1.1t | LK₨826.8b | LK₨203.8b | 6.4x | 5.4x | 1.3x |
| Thu, 19 Jan 2023 | LK₨1.0t | LK₨798.8b | LK₨210.1b | 7.1x | 4.9x | 1.3x |
| Sat, 17 Dec 2022 | LK₨1.1t | LK₨798.8b | LK₨210.1b | 6.5x | 5.3x | 1.4x |
| Mon, 14 Nov 2022 | LK₨1.0t | LK₨831.7b | LK₨223.2b | 6.7x | 4.7x | 1.3x |
| Wed, 12 Oct 2022 | LK₨1.1t | LK₨819.4b | LK₨218.1b | 7.1x | 4.9x | 1.3x |
| Fri, 09 Sep 2022 | LK₨1.2t | LK₨818.9b | LK₨217.8b | 6.3x | 5.5x | 1.5x |
| Sun, 07 Aug 2022 | LK₨1.0t | LK₨784.1b | LK₨218.3b | 5.6x | 4.6x | 1.3x |
| Tue, 05 Jul 2022 | LK₨916.7b | LK₨781.0b | LK₨217.7b | 5.8x | 4.2x | 1.2x |
| Thu, 02 Jun 2022 | LK₨1.1t | LK₨731.4b | LK₨185.8b | 6.5x | 5.8x | 1.5x |
| Sat, 30 Apr 2022 | LK₨1.1t | LK₨730.7b | LK₨191.3b | 5.9x | 5.8x | 1.5x |
| Mon, 28 Mar 2022 | LK₨1.5t | LK₨731.4b | LK₨190.2b | 8.7x | 7.7x | 2x |
| Wed, 23 Feb 2022 | LK₨1.8t | LK₨722.7b | LK₨185.7b | 9.7x | 9.5x | 2.5x |
| Fri, 21 Jan 2022 | LK₨2.0t | LK₨694.3b | LK₨167.6b | 13.3x | 11.7x | 2.8x |
| Sun, 19 Dec 2021 | LK₨1.7t | LK₨680.7b | LK₨165.8b | 9.2x | 10x | 2.4x |
| Tue, 16 Nov 2021 | LK₨1.8t | LK₨674.2b | LK₨155.6b | 7.4x | 11.3x | 2.6x |
| Thu, 14 Oct 2021 | LK₨1.3t | LK₨659.8b | LK₨147.3b | 6.8x | 9x | 2x |
| Sat, 11 Sep 2021 | LK₨1.2t | LK₨659.8b | LK₨147.3b | 6.7x | 7.9x | 1.8x |
| Mon, 09 Aug 2021 | LK₨1.1t | LK₨665.9b | LK₨148.6b | 7.2x | 7.3x | 1.6x |
| Sun, 02 May 2021 | LK₨858.6b | LK₨612.3b | LK₨150.3b | 7.1x | 5.7x | 1.4x |
Price to Earnings Ratio
5.7x
Current Industry PE
- Investors are pessimistic on the Sri Lankan Financials industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 5.7x which is lower than its 3-year average PE of 6.7x.
- The 3-year average PS ratio of 1.6x is higher than the industry's current PS ratio of 1.3x.
Past Earnings Growth
- The earnings for companies in the Financials industry have grown 17% per year over the last three years.
- Revenues for these companies have grown 20% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the Sri Lankan Financials sector?
| LK Market | 1.52% | |
| Financials | 3.15% | |
| Consumer Finance | 7.23% | |
| Capital Markets | 2.20% | |
| Insurance | 1.10% | |
| Diversified Financial | 0.15% | |
| Mortgage Finance | 0% | |
| Mortgage REITs | 0% | |
| Banks | -0.81% | |
Industry PE
- Investors are most optimistic about the Diversified Financial industry even though it's trading below its 3-year average PE ratio of 23.6x.
- It looks like they are confident that earnings will grow faster in the future than they have historically.
- Investors are most pessimistic about the Capital Markets industry, which is trading below its 3-year average of 15.7x.
Forecasted Growth
- Analysts are most optimistic on the Banks industry, expecting annual earnings growth of 16% over the next 5 years.
- However this is lower than its past earnings growth rate of 43% per year.
- In contrast, the Banks industry is expected to see its earnings grow by 16% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| LOFC.N0000 LOLC Finance | LK₨7.40 | 23.3% +LK₨46.3b | 29.8% | PE12.1x | |
| LOLC.N0000 LOLC Holdings | LK₨445.25 | 5.4% +LK₨10.8b | 19.9% | PE6.9x | |
| CDB.N0000 Citizens Development Business Finance | LK₨215.75 | 7.9% +LK₨1.1b | 16.6% | PE9.7x | |
| ABL.N0000 Amãna Bank | LK₨2.50 | 8.7% +LK₨1.1b | 0.2% | PB0.6x | |
| JINS.N0000 Janashakthi Insurance | LK₨49.10 | 7.7% +LK₨792.8m | 86.0% | PE2.7x |