NDB Group reports 2.1 bln profit in 1stH 2014
View(s):Pre-tax profit at NDB and its group recorded a 42 per cent year-on-year growth to reach Rs. 2.9 billion for the first half of 2014, whilst group post-tax profit recorded ‘a commendable increase’ of 57 per cent to reach Rs. 2.1 billion, a NDB media release said.
Group operating income was Rs. 6.3 billion, up 17 per cent growth on a year-on-year basis, with three constituents of operating income, namely, Net Interest Income (NII), Net Fee and Commission Income and Net Gains from Trading recording a year-on-year icrease of 16 per cent, 15 per cent and 38 per cent, respectively.
“The asset base of the group increased by 16 per cent compared to end December 2013, and stood at Rs. 239 billion, the release said, adding that customer deposits of Rs. 140 billion posted an increase of Rs. 22 billion (a 19 per cent growth) over the past 12 months. This was a 7 per cent growth over 31 December 2013. NDB’s balance sheet indicates a strong liquidity position supported by customer deposits and institutional borrowings, which provide a leeway for the bank to mobilize more funds to economically important sectors such as SMEs. NDB raised a further US$ 75 million in June 2014 via a syndication facilitated by the International Finance Corporation, thereby completing a total syndication of $200 million.”
The release said that NDB raised $125 million of this syndication in March 2014. The funds raised via this syndication facility will be infused to the SME sector of the country and other eligible sectors that contribute towards national development, the release said, adding that the syndication saw several leading international banks and more than five international development financial institutions lending to the bank (some of them lending to Sri Lanka for the first time).
“The second phase of the syndication facility will also help further strengthening the group’s balance sheet,” the release said.