News Update :

NDB reports strong performance

Saturday, November 17, 2012

NDB’s performance for the nine months ended September 30, 2012 indicates a strong growth momentum. The net profit after tax of Rs 2,342 million for the period show an increase of Rs 804 million (52 percent) compared to the prior year corresponding period.
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 has expanded its distribution network and continues to work on a number of IT initiatives which enabled to offer service enhancements for its customers and bring substantial improvements in operating efficiency. 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.
 Hemaka Amarasuirya
 Russell De Mel
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.

NDB continues to benefit from the group synergies and provides a unique value proposition to its customers providing a wider array of products and services. 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.

During the third quarter the bank continued to build its distribution network to provide greater accessibility and convenience to its clients by expanding its footprint in the Northern region with the opening of the branch in Chunnakam. NDB Bank continue to remain committed towards SME development in the country and opened a dedicated, state-of-the-art SME Centre in Kurunegala with the aim to provide a one stop shop for the diverse needs of entrepreneurs in the area.

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).

Russell De Mel, CEO said: “The third quarter results again prove the robustness of our business model improving risk return profile and our foot print in the country whilst contributing towards the National Development. The performance during the period reflects sound execution of our business strategies, which center on operating consistency and a disciplined approach to asset and cost management. We thank our customers for their continued support and our staff for their commitment and contribution to the bank's success.”

NDB Chairman, Hemaka Amarasuirya commenting on the performance said that “the bank expects to build on the strong performance achieved during the interim period in 2012, and remains well-positioned to capitalize on the broad economic trends that have large-scale potential in the country and the region. We have some of the most talented bankers in the business today. They share a commitment to building long-term client relationships by combining exemplary service and exceptional banking expertise.”

Share this Article on :

No comments:

Post a Comment

You may like this


© Copyright Global News 2010 -2011 | Design by Thaha Naleem | Published by Magazine Templates | Powered by