EU eyes ‘mini deal’ to ease US trade tensions

(BRUSSELS) AFP: The EU sees a chance to strike a mini deal to help ease trade tensions with the United States, the bloc’s trade chief told the Financial Times on Tuesday.

EU Trade Commissioner Phil Hogan said a decision by Washington to delay until March 18 a hike on US tariffs on Airbus from 10 percent to 15 percent was “a signal that the US (is) willing to give this window of opportunity a chance”.

The US decision followed a comment by President Donald Trump that it was time to talk “very seriously” about an overarching trade agreement.

Trump is especially keen to give US agricultural goods greater access to the EU market.

The current US tariffs on Airbus aircraft imported from Europe were imposed in October, after the World Trade Organisation authorised Washington to retaliate for European subsidies to the planemaker.

However, for the full year (FY19), the bank made Rs.11.4 billion as the provisions against the possible bad loans, compared to Rs.9.8 billion in FY18.

The bank said larger impairments were stemming from the stresses of its micro-lender.

HNB reported an operating profit before all taxes of Rs.7.9 billion, down 4 percent YOY.

The only respite the bank had during the year was its income tax, which reported a reversal of Rs.488.5 million, compared to a tax charge of Rs.321.3 million a year ago.

This stemmed from the new circular issued by the Inland Revenue Department in February 2020, exempting the Sri Lanka Development Bonds from income tax liability with retroactive effect from April 2018.

For the full year, the bank had close to Rs.2.0 billion tax windfall.

As a result of the positive tax impact, the bank reported earnings of Rs.12.52 a share or Rs.6.3 billion for the 4Q19, compared to the earnings of Rs.9.80 a share or Rs.4.9 billion in 4Q18.

For FY19, the bank reported earnings of Rs.29.32 a share or Rs.14.7 billion, compared to the earnings of Rs.35.25 a share or Rs.17.6 billion in FY18.

The state-controlled private sector pension fund, the Employees’ Provident Fund has a 9.75 percent stake in HNB.