|
All round improvement in performance :
Nations Trust Bank group shows tremendous growth
Based on the provisional results, Nations Trust Bank PLC announced
that the Group closed the year with the highest ever profit after tax of
Rs.504 million and an Earnings per Share of Rs. 4.01, an increase of 56%
over 2006.
|
Export order: Phoenix Industries will export their products to
Australia. Phoenix Industries was recently awarded Business
Super Brand status in addition to having won 3 Golds for their
Storage Boxes with Wheels, Nestable / Stackable Jumbo Crates and
Plastic Fish Crates at the recently concluded Lanka Star
Packaging Awards. CEO Hasith Prematillake and his team with the
storage boxes being exported to Australia. |
The growth was facilitated by an all round improvement in
performance. Net income grew by 30% to Rs. 3,441 Million. With net
interest income increasing by 24%, a commendable achievement in volatile
market conditions. Timely re-pricing of products helped the Bank to cope
up with the situation.
Non-interest income was up 42% with Forex income growing by a very
commendable 72%, reflecting increasing trade volumes and a greater
presence in the forex market.
Customer deposits reached Rs. 28.8 Billion, a laudable 38 % growth in
the backdrop of intense competition and rising interest rates, which led
to a shift from low yielding to high yielding deposits. Loans and
Advances stood at Rs.34.5 Bn, an increase of 28% over 2006.
Operating expenses increased by 24% mainly due to increased volumes
and inflationary pressures. Despite loans and advances portfolio
recording a significant growth, Bank managed to maintain asset quality.
Bad Debt Provisions was restricted to a mere 1% increase over 2006
whilst maintaining Gross Non-performing Loans Ratio below 5%, reflecting
improvements in risk management and post sanction monitoring procedures.
Director / Chief Executive Officer of Nations Trust Bank PLC Zulfiqar
Zavahir, said “We are extremely pleased with this remarkable performance
in a turbulent year. We were able to weather adverse economic
developments with focus and the implementation of a well thought out
strategy.
We have now put in place a strong foundation to embark upon the next
exciting phase of our growth. Growing customer numbers, standard setting
services and strong presence in all business segments are achievements
we are proud of today, which undoubtedly builds confidence of living up
to the challenges we have set ourselves in the journey ahead,”
In order to support the aggressive growth plans laid down in the new
Strategic Plan 2008 /2012, the Bank recently announced an innovative
capital augmentation plan combining rights with warrants.
This capital plan is expected to infuse over Rs. 3.000 Billion by way
of equity over the next four years.
While expressing his sincere gratitude to the shareholders for
approving the capital plan manifesting their support for the growth
plans of the Bank, Zavahir assured that the successful implementation of
the initiatives identified in the Strategic Plan will further strengthen
the Banks position in the industry and have a material impact on its
future performance.
In September 2007, Fitch Ratings Lanka Ltd. reaffirmed the A(lka)
rating of the Bank. |
