NTB reports Rs. 285m profits for first half

In the interim financials recently released to the Colombo Stock Exchange, Nations Trust Bank PLC reported that the Group achieved an excellent overall growth in performance during the first half of 2008.

With solid volume and revenue growth seen across all business lines, profit after tax rose by 48% to Rs. 285.031 mn. compared to Rs. 193.210 mn. for the corresponding period in 2007.

Total assets grew by 30% to Rs. 72.534 bn. Net income increased by 39% with operating expenses growing at a relatively slower 29%.

Sound asset and liability management practices adopted contributed to a 40% growth in net interest income while increased trade and forex volumes and active market participation contributed to a 39% growth in foreign exchange income. Other operating income from credit cards and other activities also recorded a 34% increase.

“Operational performance for the period is a reflection of our underlying core strengths such as a diverse income stream, liquidity and capital which have placed us in a strong position to withstand the challenging market conditions.

The Bank’s performance is quite commendable when viewed in the context of the slowdown of the banking industry, in the wake of tight monetary policies adopted by the Central Bank in response to the inflationary pressures.

For the whole industry, customer advances and deposits grew only by 4.8% and 3.7% respectively during the period.

The Bank however, was able to achieve a 9% growth in both advances and deposits” Director / Chief Executive Officer of Nations Trust Bank Zulfiqar Zavahir said.

Inflationary pressures, increased business volumes and costs on new strategic initiatives contributed towards the increases in operating expenses by 29%.