NTB’s 9-mth pre-tax profits up by 31 per cent
View(s):The Nations Trust Bank (NTB) closed the first nine months of the year ending 30th September 2017 with a pre-tax profit of Rs. 5 billion, up by 31 per cent over the corresponding period in the previous year. Post-tax profits increased at a lower rate of 20 per cent as a result of the increase in the effective tax rate stemming from the increase in the financial services VAT rate as well as the additional tax provided for the intercompany dividend payments which impacted the group bottom line growth, the bank said in a media release.
The dividend income received from the subsidiaries resulted in a higher other operating income for the bank. Net interest income (NIM) increase of 21 per cent was mainly driven by the volume growth which offset the unfavourable impact arising from declining NIM. The faster increase in deposits rates which mirrored market trends due to tight liquidity resulted in interest expenses increasing by 65 per cent whilst the corresponding increase in interest income was lower at 44 per cent. Expenses recorded a growth of 12 per cent with personnel and other operating expenses contributing towards the increase. Overheads expense growth of 14 per cent is owing to the increase in business volumes, regulatory charges and due to increased branding and business promotion activities. Total asset growth for the nine months was 21 per cent, driven by the loan book growth of 18 per cent primarily from SME lending.