NDB Group posts strong profits in the first quarter of 2014
View(s):National Development Bank PLC (NDB) and its group companies said this week that it’s Profit Before Tax (PBT) was Rs. 1.5 billion and a Profit Attributable to Shareholders (PAS) was Rs. 1.2 billion for the first quarter ended 31 March 2014, signifying a robust beginning for the year.
In a media statement, Rajendra Theagarajah, the Chief Executive Officer of the Bank, emphasized that the NDB Group is focusing on its 5-year strategy for business excellence, which takes cognizance of the national development goals, and that the performance this quarter is a measured step towards achieving a solid overall performance in 2014.
NDB Group’s PBT was up 106 per cent against the same quarter in the previous year while the PAS recorded a 135 per cent increase against the comparative period.
Net Operating Income of the group was recorded at Rs. 3 billion, up from 27 per cent earlier.
Impairment charges for Loans and Advances increased from Rs. 23 million to Rs.126 million due to significant impairment charges made for a few customers based on the bank’s “prudent adoption of fair valuing the impaired loans, based on sound judgment and objective evidence of future recoveries”, the statement said.
It said customer deposits were Rs. 135 billion, a 4 per cent increase over 31 December 2013.
The bank’s market capitalization as at 31 March 2014 was Rs. 29,444 million with a share price of Rs. 178.60, which resulted in a Price Earning (PE) Ratio of 6 (times).
Bank Chairman Sunil Wijesinha expressed the bank’s agility and readiness in embracing the opportunities that unfold within the industry and its commitment to reshape and flex its structures in response to the emerging national needs. Mr. Wijesinha also emphasized that such changes would place their valued shareholders, customers, employees and other stakeholders at the centre, ensuring that positive value is generated for their investments and that “the NDB as an institution is elevated from its present levels to a size that truly matters”.