Banking sector challenging, severe competition amidst slower-than-expected credit growth, says NDB
View(s):Sri Lanka’s banking sector was challenging with credit growth slower than anticipated and severe competition posed by a large number of banking and non-banking institutions, NDB Bank Group said in revealing its financial results for first half 2015.
The macro-economic outlook also carries uncertainty with the parliamentary elections due tomorrow, it said.
Discussing financials, the bank recorded a post tax profit (PAT) of Rs. 2 billion for the first half of 2015, which was up 7 per cent as compared 30 June 2014. Total operating income of the bank grew by 5 per cent compared to H1 2014, to reach Rs. 6,241 million.
Net Interest Income (NII) declined marginally by 3 per cent due to the relatively low credit growth environment which prevailed in the country.
At group level, total operating income declined marginally by 3 per cent to reach Rs. 6,136 million. The decrease was primarily due to the reduction in Net gains from NDB group’s total financial investments portfolio. Total operating expenses grew by 16 per cent, an increase of Rs. 411 million compared to the earlier period.