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Tuesday, November 20, 2012

NDB Capital profits surge 287%

NDB Capital Holdings PLC (NCAP) posted strong third quarter results recording a net profitability of LKR 206.9 million at the company level. This was almost a threefold jump in profitability compared to a Net Profit of LKR 53.4 million recorded during the same quarter the previous year, the company announced yesterday (19).

"Net Profit for the nine month period ended Sep 30, 2012 resulted in a growth of 159% which amounted to LKR 326 million compared to previous year’s figure of LKR 125.5 million. At group level, the Net Profit for the first nine months of 2012 was LKR 353.1 million, a 68.5% growth over the same period, the prior year.

This significant growth in profitability was achieved due to a series of strategic initiatives undertaken earlier in the year. The company was re-launched in June 2012 positioning itself as the only listed full service investment bank in the country offering investment banking, wealth management, stock broking and private equity. The increase in profitability at the company level was driven by a prudent asset allocation policy and efficient investment strategies.

During the period ended Sep 30, 2012, the company made strategic investments to the value of approximately LKR 890 million to acquire 100% stakes in NDB Investment Bank Limited (NDBIB), NDB Stockbrokers (Private) Limited and an additional 5% stake in Aviva NDB Insurance PLC."

Chairman, Ashok Pathirage commenting on the performance said, "NCAP’s performance was commendable despite the tough conditions which prevailed both in the money market and the capital market".

NCAP recently announced the signing of a Share Sale and Purchase Agreement with American International Assurance Company Limited (AIA) of Hong Kong, one of the largest insurance companies in the world with an exclusive focus on the Asia-Pacific region to sell its shareholding in Aviva NDB Holdings Lanka (Private) Limited (Aviva NDB Holdings) together with Aviva Asia Holdings (Private) Limited. The net receipt of US$ 59 Mn from the intended sale is expected to be earned by end 2012, subject to the necessary regulatory and legal clearances.

NCAP is a 99.6% owned subsidiary of NDB Bank."

source - www.island.lk