NDB posts strong profitability in first half of 2024
View(s):National Development Bank has posted a pre-tax profit of Rs.6.5 billion for the first half of 2024 (the period under review), an impressive growth of 58 per cent, predominantly driven by healthy net
interest income.
In a media release, NDB’s Director/CEO Kelum Edirisinghe attributed the performance to alignment to the bank’s current mid-term strategy, delivered by the passionate and dedicated NDB team.
“Our strategy is one which has been curated pivoting around three core focus areas viz. optimising cost of funds, enhancing fee based income through transaction banking and enhancing portfolio quality. This strategy will enable us to drive profitability and enhance shareholder value, helping the bank reach and exceed its true potential,” he added.
The bank recorded a total banking revenue of Rs.22.9 billion for the period under review, a growth of 24 per cent over the comparative period in 2023 (YoY). Net interest income posted a healthy 10 per cent growth to Rs.16.5 billion, commendable in the low interest rate environment that prevailed through the period.
Impairment charges for the period was Rs.8.4 billion, a YoY increase of 7 per cent versus the comparative period. Impairment (Stage 3) to Stage 3 loans Ratio improved to 44.33 per cent from 41.11 per cent in 2023.
Strong cost disciplines, together with enhancements in income enabled a cost to income ratio of 34.9 per cent for the period under review, well within the target level of 35 per cent. Total operating expenses was Rs.8 billion, a YoY increase of 23 per cent mainly driven by increase in personnel expenses due to annual revisions to staff emoluments.
Taxes were Rs.3.3 billion
with a resultant post tax profitability of Rs.3.2 billion, which was a notable YoY growth of 37 per cent.
The bank said it remains committed to driving sustained bottom line performance and enhancing shareholder value. The mid-term strategy will guide the bank in this regard. In its course of business NDB will also prioritise on the well-being of all other connected stakeholders and the economy at large, by deploying perfected commercial and development banking expertise available to its credit.
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