Nations Trust Bank 1Q profits up by 22%
View(s):The Nations Trust Bank (NTB) has reported post-tax profit of Rs. 725 million in 1Q 2017, up by 22 per cent over the same quarter last year with growth underpinned by a 9 per cent rise in loans and advances during the period under review.
Net interest income (NIM) increased by 18 per cent as the volume growth outperformed the impact arising from the narrowing of NIM.
Net trading losses for the year amounted to Rs.56 million which is reflective of the swap cost arising from an increased funding forex SWAP book and unfavorable movements in forward premiums.
“Expenses recorded a growth of 15 per cent with personnel and other operating expenses contributing towards the increase. Growth in expenses are somewhat impacted by the higher taxes applicable for the current period on account of the increase in the VAT rate and the impact of regulatory allowances. The bank continued to focus on widening the roll-out of lean initiatives, workflow methods and automation across the enterprise in its pursuit towards rationalizing expenditure on key controllable cost lines,” according to a media release from the bank.
SME and corporate loan portfolios recorded good growth during the quarter thereby cementing a strong base for further growth in the ensuing months. Commenting on the results and achievements, Renuka Fernando, CEO/Executive Director stated, “I am extremely pleased with the performance of the first quarter; well balanced across the business pillars with support functions collaborating and equally contributing towards the growth and achievements in the businesses. The foundation has now been put in place to have a successful financial year.”