The NDB Group said this week its post-tax profit for the year ending December 2008 rose to Rs 1.7 billion, up by 4 % over 2007 whilst NDB Bank’s after-tax profit was Rs 1.2 billion, up 8% over the previous year.
In the year under review, the NDB Bank also strengthened its liquidity position helped by customer deposits increasing by 25% over 2007 and by obtaining additional credit lines from multi-lateral agencies.
Last month NDB Bank invested in Capital Market Services Ltd, Bangladesh and acquired a controlling interest in the investee company. In a press release, the Bank Group said its loans and advances grew by 9%, while the deposit portfolio grew by 25% over the previous year, adding that this was commendable despite the prevailing global and local economic environment.
Referring to NPLs (non performing loans), it said the ratio of NPLs to the gross lending portfolio remained at 2.3% both at the beginning and at the end of the year, comparing favourably with the ratio in the local banking industry. The NPLs as at 31 December 2008 amounted to Rs 1,275 million as compared with Rs 1,183 million in 2007.
The effective overall tax rate of NDB Bank inclusive of the Financial Services VAT was 49% for the current year compared with 53% for the previous year. Tax on banking operations (i.e. excluding equity income) was 57% as compared with 61% for the previous year. The Tier 1 and 2 Capital Adequacy ratio of NDB Bank was 17.29% as compared with 19.46% for the previous year. The ratio for the NDB Group was 23.63% as compared with 26.15% for the previous year.
“The global financial meltdown and the economic recession are impacting the Sri Lankan economy and the banking industry. In this environment, NDB Bank has focused on consolidating and maintaining high quality assets. The bank has focused on stability and a strong balance sheet,” the statement said. |
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