NDB balance sheet rises to Rs. 371 bln
View(s):National Development Bank PLC (NDB) reported a sharp 64 per cent growth to Rs. 3.3 billion in post-tax profit (PAT) in the nine months ended September 2017 compared to the previous comparable period.
The bank’s pre-tax profit (PBT) of Rs. 5.7 billion was an increase of 61 per cent over the comparative period. Continuous and consistent improvement in core banking operations of the bank over the reported three quarters and dividend income from group companies contributed towards this “remarkable” performance, the bank said in a recent media statement.
Net interest income (NII) recorded a 23 per cent growth over the corresponding period to Rs. 7.6 billion. Total Operating Income which is a combination of NII and non-interest income grew by 29 per cent to Rs. 12 billion.
Total operating expenses was Rs. 5.5 billion, an increase of 13 per cent over the comparative period. “If not for the one-off cost involved in the pre-payment of a foreign currency loan, the increase was only 8 per cent over the comparative period and reflects the efficient and effective cost management initiatives adopted by the bank, despite branch expansion and launch of new products during the period,” the statement said.
NDB said the moderate performance in the capital markets activities experienced during the 9-month period continued to pose a challenge to the investment banking and stock broking businesses within the group resulting in lower contribution from the organisation.
The bank’s balance sheet closed at Rs. 371 billion, a growth of 11 per cent over 2016.
While customer deposits was Rs.255 billion, the bank says it continues to increase its presence in the retail space of the market thereby reducing the reliance on costly funding sources.
The bank’s loans to deposits ratio (LDR) stood at 104 per cent as at 30 September 2017.
Commenting on the latest performance, Director/CEO of NDB, Dimantha Seneviratne noted that consistent growth was experienced over the three reported quarters with greater focus on customer service, whilst understanding the needs of the various customer segments of the country.
He said that the bank’s new strategy which was developed in professional consultation with the International Finance Corporation has made much progress and is now on track with a strong foundation for the next 3 – 4 years of growth.