Sri Lanka's NDB recently released its financials for the three months to end-March 2011, which showed that group profit attributable to shareholders having increased by 102% year-on-year while, for the same period, the bank's profit after tax rose by 65%. Further, increases in after tax profitability were pinned on reduced taxation as of 2011.
Meanwhile, group and bank first quarter 2011 profit before tax was stated as Rs. 966 million and Rs. 708 million respectively, up 23% year-on-year for the group and 8% for the bank. Additionally, it was noted that the "core banking income of the bank increased by 15% over the same period."
Also revealed in a statement by NDB; "The bank's balance sheet as at 31 March 2011 grew by 17% over 31 March 2010 from Rs. 94.6 billion to Rs. 110.3 billion. This was mainly due to the significant growth in the bank's gross lending portfolio by Rs. 20.1 billion (35%) over the past twelve months. This was supported by a growth of 21% in the deposit portfolio over 31 March 2010... Despite the significant growth in the Loan portfolio in all the sectors, NDB Bank has been able to contain its Non Performing Loans (NPL) ratio to an all time low of 1.8% [and] provision cover on NPLs was at 73% as at 31 March 2011 with an Open Loan Position of 3.29%, which [signifies] minimum amount of stress on the bank's equity, on account of un-provided delinquencies.
The bank's Tier 1 Capital Adequacy Ratio of 11.18% and a Tier 1 & 2 ratio of 12.89% are well in excess of the regulatory minimum of 5% and 10% respectively, providing ample capacity for the rapid expansion planned for the future." |
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