steady progress in first half of 2005
Nations Trust Bank continued its steady progress with an operating
profit of Rs 99.4 million for the six months ended June 2005, up
from Rs.71.4 million in the same period last year, the bank said
in a statement.
interest income rose to Rs 408.9 million from Rs 268.3 million for
the same period last year, up by 52 percent, as a result of good
growth in both advances and lower cost deposits. Fees and Other
Income too rose from Rs.208 million to Rs 269 million, an increase
of 29 percent, it said.
excluding loan loss provisioning increased by 28 percent, mainly
due to the additional costs of running the six new branches opened
during the course of 2004. “In keeping with the Bank’s
conservative policy of loss provisioning, provision has been made
for all known and potential bad debts. The increased provisioning
for the period includes ‘hair cut’ provisions in line
with the new Central Bank regulations, and the credit card portfolio
which is now reaching a level of maturity. In addition, the Bank
also follows a general provisioning policy of 1% of advances,”
the statement said.
to the end of 2004, Customer Deposits increased from Rs 10.4 billion
to Rs 12.3 billion while Loans and Advances rose from Rs 9.2 billion
to Rs 10.7. The bank also launched its leasing business at the end
of last year and this has grown in line with expectations.
branch expansion programme was deferred to later this year, to enable
the consolidation of the branch network, with only the Kadawatha
branch being opened in June. The bank also launched the first off-site
cheque deposit box at the Lanka IOC multi- service station at Panadura
which has proved quite popular with the customers.
Executive Officer NTB, Zulfiqar Zavahir said, “we are now
seeing the results of the focused implementation of a well thought
out strategy and are quite pleased with the steady progress made
so far. We have a relatively young but very committed team, who
are determined to make a difference in the Sri Lankan banking industry.”