NDB Bank in Rs. 2,037 million profit for 2005
BANK RESULTS: All areas of the Bank and the Group performed well in
the year of the merger with NDB Bank Ltd. The merger was finalised on
August 1, 2005.
NDB group recorded profit before tax of Rs 2,037 Mn for 2005 compared
with Rs 1,287 Mn for 2004, an increase of 58%. The profit after tax for
the group increased by 81% from Rs 805 Mn in 2004 to Rs 1,459 Mn in
2005.
The profit attributable to shareholders increased by 74% from Rs 703
Mn to Rs 1,222 Mn during the year.
NDB Bank is rapidly developing as a meaningful competitive advantage
in consumer banking services.
The Bank added eight new branches in 2005, bringing the total number
of branches marketing consumer banking and other products and services
to 24.
The Bank's branches offer a wide range of products including consumer
products and provide a strong service orientation.
The new products launched during the last two years include Internet
Banking that enables customers to bank from anywhere in the world, the
VISA enabled NDB Bank Link ATM/ debit card, which provides global access
to its customers and personal loans branded Dream Maker.
The core banking business has made progress during the year. The net
interest income and net other income increased by 36% and 21%
respectively over the last year. The gross lending portfolio of the
merged Bank increased from Rs 34 bn to Rs 37 bn, an increase of 8%.
The Bank continued to generate significant revenue out of the equity
markets. Income from equity for 2005 was Rs 577 Mn when compared with Rs
482 Mn for 2004, a 20% increase.
It made a marked improvement during the year in its position with
regard to non-performing loans (NPLs), The merged bank's NPL ratio
reducing from 8.2% as at 31st December 2004 to 4.2% at the end of 2005.
Provisions against the NPLs of the Bank were increased to 82.3% as at
the end of 2005 as against 65.9% as at 31st December 2004.
The overheads of the merged Bank increased during the year by 22%
after four years of relatively small increases, due to merger related
expenses and the aggressive expansion of the commercial banking
activities.
NDB Investment Bank Ltd and NDBS Stockbrokers (Pvt) Ltd also
contributed significantly to the profit growth of the group due to
increased capital market operations and improved market conditions.
During the year, NDB Investment Bank Ltd was responsible for the two
largest ever Initial Public Offers (IPOs) on the Colombo Stock Exchange.
These massive IPOs were undertaken on behalf of LIOC and Dialog. |