Nation’s Trust Bank (NTB) in a statement this week has discovered a breach of procedure in its dealing room leading to an exchange loss, but says that gains from other treasury operations will offset this loss to a ‘great extent’ and the impact on the bottom line.
The bank didn’t say what the loss was. Analysts said that what NTB means by other treasury operations is trading in fixed income securities such as bond trades. In a statement, NTB has noted that this loss resulting from the breach does not adversely affect any of the liquidity and capital adequacy ratios, which will continue to remain well above the statutory requirements. “The bank is on track to meet this year's revenue and profit forecasts,” NTB has said, adding that in the interim accounts for the period ended 30th June 2009 which will be out in July will confirm this and reflect the continuing strength of the bank."
However analysts said that NTB shares gained during the last three months mainly due to the gains in bond trades. “If NTB sets these gains against their loss, then its share appreciation may be impacted,” an analyst noted. |
E-mail