Good performance from Nations Trust Bank

Nations Trust Bank PLC has achieved operating profit before taxes of Rs. 851.595 mn. for the nine months ended September 30, 2008 against Rs. 683.314 Mn. reported for the comparable period last year, reflecting a 25% growth.

Director/CEO Zulfiqar Zavahir

Profit after taxes grew by 19% to Rs. 420.998 mn. for the period compared to Rs. 353.259 mn. reported for the same period last year.

Corresponding to the growth in total assets of 34% and a significant increase in non-fund based income, gross income of the Bank grew by 56%. Increased trade and forex volumes and active market participation contributed to a 51% growth in foreign exchange income while credit cards and trade related fees and commissions boosted the other operating income by 48%.

"The local banking industry has significantly slowed down. According to the Central Bank, deposits and loans & advances grew only by 5.2% and 3.9% respectively during the first nine months of the year in comparison to 11.9% and 15.8% for the corresponding period in 2007. In comparison, we have been able to grow our deposits by 10% and loans & advances by 19%.

A disciplined approach to risk and capital management, managing interest margins and liquidity at optimum levels have contributed to positioning the Bank well for the remainder of 2008",. Director/ Chief Executive Officer of Nations Trust Bank PLC Zulfiqar Zavahir said.

In the backdrop of inflationary pressures, increased business volumes and costs on new strategic initiatives, operating expenses increased by 38%.

However, the Bank managed to keep the growth in operating expenses at a lower rate than the growth in net income thereby improving operating efficiency.