NDB completes ‘impressive’ first quarter 2018
View(s):National Development Bank PLC (NDB) completed the first quarter ending March 2018 on a high note with impressive growth in profitability and business volumes.
Q1 performance was recorded in the aftermath of a highly successful financial year in 2017, the bank said in a media release adding that gross income grew by 20 per cent to Rs. 11,943 million, reflecting the enhanced business volumes recorded during Q1 2018, compared to Q1 2017.
Net Interest Income (NII) recorded an impressive growth of 44 per cent to Rs. 3,351 million. Net fee and commission income also grew by 28 per cent to Rs. 710 million for the quarter.
“Growth in the loan book, particularly in leasing and credit cards, and the accelerated penetration of the bank’s mobile banking app were instrumental in generating enhanced fee based income,” it said.
Operating profit before tax on financial services increased by 40 per cent to Rs. 2,678 million while post-tax profit was Rs. 1,561 million at the bank level.
On the liability aspect, customer deposits grew by 4 per cent to Rs. 284 billion, a quantum increase of Rs. 11 billion. With the increase in the deposits base, the loans to deposits ratio further improved to 101 per cent in Q1 2018 from 102 per cent in 2017.
Return on equity (Group) was 14.03 per cent, an impressive increase from 11.09 per cent in 2017. The same ratio for the bank was 16.78 per cent. Bank earning per share also improved to Rs. 27.62 from Rs. 24.52 in end 2017. Return on average assets recorded a marginal improvement to 1.26 per cent from 1.21 per cent in 2017.
NDB CEO Dimantha Seneviratne, commenting on the quarter’s performance said the results mark a sound beginning for the year and thanked all the stakeholders of the bank for the support.
He noted that the bank continues to be guided by its mid-term strategy and is meticulously pursuing the targets with the ultimate goal of becoming a systemically important bank by 2020.