News Update :

NDB Group records phenomenal results

Sunday, February 17, 2013



Financial year 2012 proved to be an year of record performance for NDB as it reported a 37 % and 45 % increase in profit before tax (PBT) and profit after tax (PAT) respectively, with its asset base recording an increase of 17 % over December 31, 2011. These growth levels resulted in a PBT of Rs. 4.6 billion and PAT of Rs. 3 billion.



Hemaka Amarasuriya and Russell de Mel
However, it is noteworthy to mention that the share of profits available for shareholders at a group level increased significantly by 227 % to Rs 8.8 billion, due to the capital gains of Rs 6 billion generated as a result of the divestment of the investment in AVIVA NDB Insurance PLC to American International Assurance (AIA) Company Limited of Hong Kong during the fourth quarter of 2012.
 
The Net Interest Income of the bank increased by 26 % over the last year with other income from fees, commission and forex income increasing by 22 % to Rs. 2.3 billion.

On the operating expenses side, gross administrative expenses increased with a controlled growth of 16 % over last year.

Provisions for loan losses for the period were reported at Rs. 94 million for the year compared to the reversal of Rs 326 million in 2011, due to provision recoveries/releases of Rs 426 mn in 2011.

The asset base of the bank grew to Rs. 162 billion as at December 31, 2012 from Rs. 138 billion as at year end 2011 indicating continued acceleration of development financing activities by the bank.

Advances (gross) of the bank was Rs. 119.2 billion with an increase of 18% over 2011, mainly on account of growth in the SMEs, agriculture and the service sectors.

The deposit base of the bank increased by 31%, with a 10% and 60% increase reported in current and saving deposits respectively, improving the CASA percentage substantially.

The bank also achieved a 21% return on equity and reported improved Earnings Per Share (EPS) from Rs 12.25 in 2011 to Rs 17.74. However, the Group EPS for 2012 is significantly higher at Rs 53.82 due to the capital gain of Rs 6 billion earned by the NDB Group from divesting NDB Group’s holding in AVIVA NDB Insurance PLC to AIA.

The balance sheet growth of the NDB group of 21% from the previous financial year points to a sound financial position and the shareholders’ equity base increasing by Rs 8 billion to Rs 25 billion. This significant surplus in shareholder funds within the NDB group will result in the Bank having ample opportunities in moving forward to benefit from development opportunities in the country and in the region.

During 2012 the Bank expanded its distribution network by opening nine branches.NDB continued to remain focused on driving the SME business segment and opened four more dedicated SME Centres in Kandy, Anuradhapura Matara and Kalutara. NDB’s SME Centres aim to provide a one-stop-shop for the diverse needs of entrepreneurs. They are equipped to provide 360 degree solutions ranging from financial expertise on SME Banking services, industry expertise for those who intend to start up new business ventures to investment and capital management advice along with a gamut of customized credit facilities. The bank also conducted SME workshops in several regions.

Source: dailynews.lk
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 Blogger.com.