Resilient performance for NDB in Q1 2024
View(s):National Development Bank PLC, Sri Lanka’s fourth largest listed bank commenced the financial year on a positive note, with resilient performance for the first quarter of the year ended 31 March 2024.
NDB’s Director/ Chief Executive Officer Kelum Edirisinghe said the bank continued to face challenges on relatively low credit demand due to subdued economic activity.
In a media release, the bank said it recorded a pre-tax profitability of Rs. 1.8 billion for the three months ended 31 March 2024, up by 31 per cent over the same period in 2023 (YoY).
Total operating income for the period was Rs. 10.1 billion, a YoY increase of 8 per cent, driven by net interest income of Rs. 8.1 billion, net fee and commission income of Rs. 1.8 billion and other income of Rs. 208 million.
The twin impact of a descaled loan book, re-priced down in tandem with declining anchor interest rates as a part of the relaxing monetary policy of Central Bank led to a YoY reduction in net interest income. The bank’s efforts in managing cost of funds led to an improvement in the net interest margin to 4.23 per cent from 3.96 per cent in 2023 thereby easing out the pressure from reduced interest income.
Impairment charges for the quarter netted Rs. 4.4 billion, a decrease of 9 per cent compared to the same quarter in 2023.
In its outlook, the bank said the economy continues on the recovery mode and it remains well poised in catering to emerging financial and advisory needs of the country and its people. The clearly articulated three-pronged strategy spanning the mid-term with adaptability to evolving socio, political and economic landscapes will guide the bank towards shareholder wealth maximisation and value creation, it said.
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