NTB shows resilience in last quarter performance
View(s):The Nations Trust Bank (NTB) closed the nine months ending September 2018 with a post-tax profit of Rs.2, 918 million amidst multiple challenges witnessed across the industry with increasing non-performing loans, tightening of liquidity and moderating credit growth which particularly hindered the performance for the quarter.
In a media statement, the bank said it realigned its resources in a “timely manner” during the quarter with focus on managing impairment provisions and bottom line growth whilst consolidating growth in selective portfolios.
Net interest income (NIM) increased by 31 per cent mainly attributable to growth in volumes as NIMs stabilised and remained on par with the previous period.
Non-fund based income recorded a moderate growth of 16 per cent with trade finance, syndication based facility fees and bancassurance fees contributing to a larger portion of the increase. Net trading losses dropped significantly during the period under review.
Impairment charges for the current year increased as some portfolios of the loan book experienced cash flow stresses, which were also seen at an industry level.
Expenses recorded a growth of 19 per cent, partly due to investments made in technology, branding and people related skills development and employment engagement activities.
“On the digital front, the bank has undertaken a number of initiatives to improve efficiencies thereby re-engineering the opex model with the digitalizing of branch processes, automation of operational processes through Robotic process automations and enhancing the digital footprint across the bank; all of which have made a considerable impact in generating operational efficiencies,” the statement said.
Loans and advances recorded a growth of 18 per cent primarily driven by corporate lending. Deposits recorded a growth of 18 per cent with fixed deposits growing by 25 per cent.
Commenting on the results, Renuka Fernando, CEO/Executive Director, said: “Managing impairment has been a key area of focus for us during the past few months whereby we have reorganised our collection shops and hope to keep a close watch in the upcoming months and will continue to focus until the stress on selective portfolios stabilise. Our digital transformation journey and investments in business transformational technology will continue to be pivotal strategic focus areas for us in the ensuing months.”
She added: “With the operating environment going through a turbulent phase, we remain focused in achieving our goals set for the year”.