Tuesday, November 13, 2012

NDB net profit up 52 percent to Rs. 2.3bn

National Development Bank (NDB) reported a 52 percent year-on-year growth in net profits during the nine months ended September 30, 2013 to Rs. 2.34 billion.

"The impressive performance during the period results from the continued focus on achieving a number of main objectives, including re-focusing our business and pursuing a growth agenda. Key initiatives aimed at developing SME and retail segments and improving asset quality remain on track," the bank said in a statement.

"The interim performance is contributed by growth in the core banking profits and the net interest income grew by 25% to Rs.4,032 million and Forex income grew by Rs.561 million during the period. The reported results also include the equity income of Rs.536 million gained from the sales proceed on the sale of investments of NDB Investment Bank Ltd, NDB Stock Brokers (Pvt) Ltd and the 5 percent direct holding of Aviva NDB Insurance PLC, to NDB Capital Holdings PLC.

"The consolidated group performance is also commendable with profit attributable to the shareholders increasing by Rs. 334 million to Rs. 2,041 million over the corresponding period last year.

"The Bank’s Basic Earnings per Share of Rs.17.23, indicates an increase of 40 percent over September 30 2011. The Bank’s Return on Average Assets and Equity for the current period was 1.91 percent and 20.83 percent respectively, compared to 1.74 percent and 16.63 percent, respectively, over the nine months of 2011.

"The Bank’s loans and advances increased to Rs.113.0 billion as at September 30 2012, an increase of Rs.19.0 billion, or 21 percent, compared to September 30, 2011. The NPLs to gross lending portfolio of 1.35% as at September 30 2012 continues to remain healthy due to the proactive risk management practices of the Bank, and is well below the industry average. The liquidity and our capital ratios remain strong with a Total Risk Based Capital Ratio of 12.6%, well above the 10 percent considered "adequately" capitalized by bank regulators.

"The NDB Group recently announced its 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 NDB’s shareholding in the Aviva NDB Holdings Lanka (Private) Limited (Aviva NDB Holdings). The Net receipt of US$ 59 Mn of the intended sale process is expected to be earned by the Group by end 2012, subject to the necessary regulatory and legal arrangements. This will result in NDB Group’s strong capital base to improve further to a significant level which will enable enhanced growth of its core banking business, which together with NDB’s brand strength, the geographical reach and leveraging on the well positioned group companies will result in shareholder expectations reaching greater heights."
source - www.island.lk

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