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Nations Trust Bank (NTB) posted a profit after tax of Rs.22.6 million for the financial year ended December 31, 2001, an increase of 11% over the previous year, despite the poor performance of the economy and very difficult market conditions.

In view of the economic downturn in 2001, the Bank has taken a more prudent approach in 'Provisioning' and charged Rs.35.8 million on account of possible bad and doubtful loans. The net exposure of Non Performing Advances (total non performing advances less interest in suspense included in overdrafts, less specific provisions for bad and doubtful debts) as a percentage of total direct advances was 2.7% as at the year end. Additionally, General Provisions stood at Rs. 28.7 million, a bank spokesman said.

The Bank's net revenue grew by 77%, while Operating Costs increased by 64% reflecting the full year costs of the branches in 2001 compared to only a six-month period in 2000.

Balance Sheet growth of the Bank has also been impressive, with Deposits (including Borrowings under Repurchase Agreements) at Rs. 3,980 million, increasing by 58% (Rs.1,481 million) and Advances (including Commercial Paper) at Rs.3,151 million, increasing by 68% (Rs.1,269 million). Commitments and Contingencies (Letters of Credit and Guarantees) increased by 49% (Rs.452 million). Total Capital and Reserves as at the end of the year was Rs.608 million.

Currently, the Bank accounts for approximately 15,000 customers which is a significant increase over the customer base of 1500 it had at the time of the take-over of Overseas Trust Bank in July 1999.

Chairman, Vivendra Lintotawela said in the context of the economic climate that prevailed in 2001 and peer banks, the results are relatively satisfactory. "The Bank has laid the foundation for sustained growth and put in place strategies, which will enable Nations Trust to be a major player in the years to come," he said in the annual report 2001.

The Bank's strategic plan was revisited in the latter half of 2001, in the light of actual performance of the last two years and the rapidly changing operating environment. Emerging from the revisit of the plan, broad consensus was reached with the stakeholders on the vision for the Bank and the strategies to be adopted to make this vision into reality.

With a view to repositioning the Bank in terms of its vision, the Bank has relocated the Head Office to 242, Union Place and reorganised the Bank into three main Business Units of Retail Banking, Corporate Banking and Treasury/Investment Banking each headed by an AGM, he said.

Moksevi Prelis, CEO/Director said: "The bank has grown significantly in the three years since its inception, increased the customer base and balance sheet quite impressively. The Bank's products, which are both innovative and flexible, now provide a wide choice that customers have started associating Nations Trust Bank with. We will intensify our retail focus and increase our branch network significantly over the next few years. Our plans are ambitious but achievable given the commitment of our Board, the dedication and teamwork of management and staff and the rapidly increasing base of satisfied and loyal customers," he said.

The Board of Directors comprises of Vivendra Lintotawela (Chairman), Chandra Wijenaike (Deputy Chairman), Moksevi Prelis (Director/Chief Executive Officer), Susantha Ratnayake, Sanjiva Senanayake, Eranjit Wijenaike, Ajit Gunawardene, Charmaine Kiriella, S.Easparathasan, Jagath Fernando and Anushya Coomaraswamy.

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Produced by Lake House
Copyright 2001 The Associated Newspapers of Ceylon Ltd.
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