Friday, 19 April 2002  
The widest coverage in Sri Lanka.
Business
News

Business

Features

Editorial

Security

Politics

World

Letters

Sports

Obituaries

Archives

Government - Gazette

Sunday Observer

Budusarana On-line Edition

Marriage Proposals

Classified Ads


NTB growth satisfactory among peer banks -Lintotawela

By Ravi Ladduwahetty

Nations Trust Bank (NTB) has reported a post tax profit of Rs. 22 million for the year ended December 31 2001, up 11 percent from a year ago, which Chairman Vivendra Lintotawela describes as: "relatively satisfactory in the context of the national economy and peer banks while being in an investment and growth phase".

Lintotawela has told shareholders in his annual report that the Banks's Balance Sheet growth too has been outstanding with Deposits (including borrowings under repurchase agreements) increasing by 58 percent to Rs.1,481 million and advances including Commercial Paper increasing by 68 percent to Rs.1,269 million. Our Commitments and Contingencies which include Letters of Credit, Guarantees etc, went up by 49 percent to Rs. 452 million, a very creditable performance in a very difficult year, Lintotawela told shareholders.

The NTB Chairman has described 2001 as a year of consolidation, and a year in which the bank put in place processes to ensure that branches contribute positively to its bottom line. NTB has revisited the strategic plan, which was formulated in early 1999, in the light of actual performance in the last two years and the changes in the operating environment.

Emerging from the revisit of the Bank's strategy, broad consensus was reached with stakeholders on the vision of the bank and the strategies to be adopted to make this vision a reality, Lintotawela said in the Bank's Annual Report.

He said that the year 2002 will see significant growth and a need for further investment, both in terms of branches and automated teller machines and also in the state-of-the-art Management Information system which will enable us to manage the business more effectively and prudently. In the circumstances it is considered more prudent to continue to build our reserves and hence your Board of Directors does not recommend a dividend this year. Total Capital and Reserves at the end of the year was Rs. 608 million.

NTB's Director/CEO M.R. Prelis, in his Chief Executive's report has said the vision of the Bank is to achieve in five years, at least five percent market share from the current share of 0.8 percent and to be among the five top Sri Lankan banking institutions, however, in terms of Return On Equity (ROE), our objective is to be at the very top. Our mid term objectives will be to have an ROE of greater than 15 percent in three years.

He said: "We are in the growth stage of the bank's evolutionary process and there is still a need for a further significant investment in terms of increasing our points of representation to achieve economies of scale. Additional investments are being made in the development and implementation of a state-of-the-art Management Information system, which will enable us to optimise resources and increase profitability. In the circumstances it is prudent to postpone dividends this year."

NTB's turnover has increased to Rs. 701.3 million for the year ended December 31, 2001, up from Rs.302.9 million a year ago. The interest income has increased to Rs. 607.2 million from Rs. 252.8 million between the two years. The net income has increased to Rs. 329.1 million from Rs. 185.7 million. The total operating profit has gone up to Rs. 33.17 million from Rs. 26.20 million, between the two years. The post-tax profit has increased to Rs. 22.6 million from Rs. 20.3 million the previous year. The earnings per Rs.10 share has gone up to 45 cents from 41 cents a year ago.

The Board of Directors of Nations Trust Bank comprises: V. Lintotawela (Chairman), C. Wijenaike (Deputy Chairman), M.R. Prelis (Director/ CEO), S.C. Ratnayake, C.J. Fernando, A.D. Gunewardene, Miss A. Coomaraswamy, Easparathasan, E.H. Wijenaike, Mrs. C. Kiriella and S. Senanayake.

www.eagle.com.lk

Crescat Development Ltd.

www.priu.gov.lk

www.helpheroes.lk


News | Business | Features | Editorial | Security
Politics | World | Letters | Sports | Obituaries |


Produced by Lake House
Copyright 2001 The Associated Newspapers of Ceylon Ltd.
Comments and suggestions to :Web Manager


Hosted by Lanka Com Services