Nations Trust records slight increase in 1st half 2013 profits
View(s):Nations Trust Bank (NTB) Group recorded a post-tax profit of Rs. 980 million for the six months ended 30 June 2013 compared with Rs. 933 million in the corresponding period of the previous year.
“The performance was evenly balanced across the business pillars with results demonstrating good underlying momentum despite industry challenges faced in a subdued macro-economic environment. The modest financial performance recorded by the bank was underpinned by a well diversified business mix minimizing earnings volatility and offsetting economic headwinds seen in multiple areas,” a bank statement said.
Commenting on the results and growth prospects, Renuka Fernando, Director/CEO said, “We are optimistic on a possible turn around in demand for credit towards the latter part of the 2H with declining interest rates fueling credit demand. The full impact of the 24 per cent interest rate ceiling introduced by CBSL coupled with the ceiling on penal interest rates especially with respect to the leasing book will come into full effect in the 2H, throwing fresh challenges especially in the Leasing and Cards businesses.”
NTB’s NPLs ratio stood at 3.9 per cent, up by over 2.8 per cent reported in December 2012. The impairment charge for the six months increased by Rs. 100 million over the previous period mainly due to the pawning portfolio.
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