Sri Lanka Stock Picks

Sri Lanka stock picks site has been developed to give first hand information with regard to share trading opportunities available for investors who do not like go through lengthy research reports, calculations,etc but to have a clear idea about stocks that have future up side potential.Our service is just not for day traders but for the investors who wish to see their money growing in the long run.Our main objective is to provide information relating to trading under one roof.

Thursday, November 11, 2010

NDB Group PAT up in Q3

The NDB Groups profit after tax (PAT) for the third quarter ended September 30 2010 grew significantly by 83 percent over the second quarter of 2010.

In fact, the NDB Groups growth in profit after tax for the third quarter of 83 percent compares also favourably with the growth in Profit After Tax for the second quarter, which was 44 percent.

NDB banks core banking profits (excluding exceptional gains made in 2009) showed 14 percent growth and profit after tax also grew by 17 percent over the corresponding period last year.

Though the core banking profits on an as is basis reflects a decline of 12 percent over 2009, this gap has declined from 22 percent as at the end of the second quarter. Similarly the gap in Profit After Tax also been systematically reduced from 22 percent as at the end of the second quarter to 14 percent at the end of the third quarter.

The Banks gross lending portfolio grew significantly by 16 percent from Rs 56.1 billion as at the beginning of the financial year to Rs 65.1 billion as at September 30 2010.

This significant growth of 16 percent compares well with the industry growth of 10 percent as at August 31 2010.

It is noteworthy to mention that all business segments of the Bank grew satisfactorily with Project Finance, SME, Retail and Trade Finance accounting for a major share.

The customer deposits grew 18 percent over the last twelve months from Rs 44.3 billion as at September 30 2009 to Rs 52.1 billion and was 4 percent over the last financial year end.

The stringent policies adopted by the Bank to maintain a high quality portfolio resulted in the Banks ratio of Non Performing Loans (NPLs) to the gross lending portfolio improving from 2.58 percent as at December 31 2009 to 2.08 percent as at September 30 2010.

Due to the above, NDB Banks NPL ratio remains one of the healthiest in the local banking industry and compares very favourably with the industry NPL ratio of 6.7 percent as at September 30 2010. The operating costs of NDB Bank increased by 14 percent over the corresponding period last year, which was partially influenced by inflation and to a greater extent resulted due to measures initiated to increase capacity and reach.

However, NDB Banks cost to income ratio of 43 percent for the period compares favourably with the industry ratio, which is in excess of 50 percent.

source - www.dailynews.lk