NTB profit up 9% last year
View(s):Nations Trust Bank Group recorded a profit after tax of Rs. 2,127 million for 2013 compared with Rs. 1,951 million in the previous year, a moderate earnings growth of 9 per cent.
“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 undepinned by a well diversified business mix minimizing earnings volatility and offsetting economic headwinds seen in multiple areas,” a bank statement said.
It said the year commenced with weakening credit demand leading to higher liquidity and loan growth falling below anticipated levels in the banking system. The policy rate cuts affected at frequent intervals, to fuel credit growth led to a gradual decline in interest rates as the year progressed.
Non fund based income recorded a decrease of 13 per cent mainly due to foreign exchange losses. The high volatility that prevailed in the SWAP premiums during the year negatively impacted FX income arising from funding SWAPS. These losses were partly compensated by trading and mark to market gains on the FIS portfolio due to favourable movement in the yield curve.
“Significant investments were made during the year on the execution of lean management concepts and the phased implementation of the core banking project to uplift efficiencies and productivity levels to an unprecedented level over the medium term. This technology enabled transformation would drive operational excellence by enabling collaboration across front-end and support functions of the bank,” it said.
Impairment for loans and advances for current year was Rs. 451 million compared to Rs. 432 million for the previous year. The amount attributable to pawning was at a manageable level of Rs.165 million due to the relatively small size of the pawning portfolio, which is 2.7 per cent of the loan book.
Commenting on the results and achievements, Renuka Fernando Director/CEO stated, “Despite the innumerable challenges faced by the industry we were able to continue on our growth trajectory by recording a modest performance whilst continuing to invest in developing the infrastructure for our long term strategy, led by rapid expansion of our branch and direct banking channels, re-engineering of our business processes and implementing a new core banking system”.