NDB Group profits up by 35% to Rs 2.9 billion
Date: Tuesday, February 28, 2012 @ 10:42:51 LKT
Topic: Top Stories

NDB Chairman Hemaka Amarasuriya, CEO Russell de Mel

The NDB Group’s profit after tax for the year was Rs 2.94 billion, an impressive growth of 35% over the previous year. The profit attributable to shareholders for the year was 2.70 billion and compares with Rs 2.1 billion for 2010, a growth of 29%. This significant increase in group profits was attributable to the growth in the core banking income of NDB by 13% over the previous year and the improved performance of the fee based group companies.

NDB positions itself as the only Financial Services Group in the country, with subsidiaries and associates in investment banking, stock broking and wealth management, which make up the capital markets cluster, and insurance. The performance of the capital markets cluster improved significantly due to the increased level of activity, in particular managing complex IPOs, apart from a host of other investment banking services it offers.

The bank’s net interest income grew by 18% over 2010, supported by a significant growth in loans and advances by 43% and customer deposits by 35%. The growth is commendable and in relative terms NDB’s performance during the year was higher than its peers.

The bank’s profit after tax, grew by 32% despite the relatively lower equity income during the year compared with 2010.

NDB has been able to contain its non performing loans (NPL) ratio to an all time low of 1.35% which is one of the lowest in the industry. The bank has been able to achieve this low level of delinquencies by the use of strong credit analysis techniques and proactive risk management practices.

The provision cover on NPLs was at 74% as at December 31, 2011 with an open loan position of 2.73%, which signify minimum amount of stress on the bank’s equity, on account of un-provided delinquencies.

NDB is actively engaged in SME banking and has funded agriculture, handicrafts, manufacturing, trading and distribution, fisheries, and dairy sectors to develop the entrepreneurs in the country.

Courtesy: DailyNews

This article comes from Tops Sri Lanka - Tops.lk

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