NDB making strides in Bangladesh
National Development Bank (NDB) is the only foreign investment bank that operates in Bangladesh in a growing economy. “We have also launched a strategic plan last year to be among the five commercial banks in Sri Lanka and have a short and long term strategy to improve the bank’s performance,” said NDB’s Director /Group CEO Dimantha Seneviratne at the NDB Investor Forum media briefing held at The Galadari Hotel Colombo last week.
He said the NDB that commenced operations 40 years ago as a development bank now functions as a fully-fledged commercial bank from 2005 with 107 branches and added 50 per cent of its branch network in the last five years.
Referring to digital banking, he said the bank launched a new digital financial solution unit which had recorded growth and is progressing rapidly.
“In the capital market cluster we are in a unique situation with subsidiaries of the NDB Investment Banking, NDB Work Management, stock-broking and with NDB Capital Bangladesh operation. We have employed the second largest number of Chartered Financial Analysts in the country.”
He said the bank’s staff strength had been increased to 2300 to support the growth in the branch network. “NDB has been recognised as the best bank in Sri Lanka by the Global Finance Publication of the US.” Referring to the bank’s credit cards, he said it has recorded a growth during the past one and a half year’s period. Asked why foreign funds are not flowing into the bank at the present juncture, the CEO replied that due to trade wars being waged in big economies such as the US, China and in Europe foreign investment has slowed down a bit but could gain momentum in the future.
Others present at the media briefing were the NDB Chairman Ananda Atukorala, Group Chief Financial Officer Lalith Fernando, Vice President Corporate Banking Buwaneka Perera, Vice President Personal Banking Sanjaya Perera and CEO of NDB Capital Holding Ltd, Vajira Kulatilaka.
Meanwhile in a media statement, NDB said it has secured “impressive results” for the six months ended 30 June 2018, continuing the strong growth it recorded last year.
Commenting on this performance, NDB Group CEO Dimantha Seneviratne said that continuous improvement in financial performance recorded by the bank demonstrates the intrinsic capabilities of NDB, which are now being utilised through a meticulous strategy execution.
Furthermore,he pointed out that the potential to reach greater heights is immense and with the support of the team, the Board and shareholders, the bank is on a mission to reap greater benefits as we forge ahead.
The bank recorded an operating profit before tax on financial services of Rs. 4.81 billion, a 26 per cent year-on-year (YoY) growth.
Operating profits from core banking activities excluding equity income increased significantly by 53 per cent YoY to Rs. 4.25 billion compared to Rs. 2.79 billion in the comparative period. This operating profit growth was supported by enhanced performance of all key business segments. Post-tax profit at the bank level crossed the Rs. 2 billion mark to reach Rs. 2.77 billion. Profit attributable to shareholders improved remarkably, to Rs. 2.42 billion, a 63 per cent growth over the comparative period.
An impressive 43 per cent YoY growth was recorded in Net Interest Income (NII) to Rs. 6.8 billion.
Impairment charges saw a notable increase to Rs. 1.31 billion compared with Rs. 581 million of the prior period due to a combination of factors including slight increase in the NPL ratio and the predictive based collective impairment. The impairment charge for the period under review included individual impairment of Rs. 749 million and collective impairment of Rs. 544 million, the statement added.
Total assets of the bank crossed Rs. 400 billion to reach Rs. 417 billion in H1 2018 while customer deposits grew exceptionally well during the six months by 9 per cent to Rs. 297 billion. “This translates to a quantum growth of Rs. 24 billion. CASA deposits within overall deposits also increased by Rs. 6.5 billion. The continuous growth in the deposits has improved the loans to deposits ratio, benefitted the NIM and the net interest income,” the bank said.