NDB Group maintains quality growth

NDB Group, the universal financial service provider, reported a profit before tax of Rs 2.35 b for the nine months that ended on September 30, 2008 as compared to Rs 2.31 b for the corresponding period last year.

The profit after tax of the group was Rs 1.15 b as compared to 1.26 b for the comparative period last year. The profit before tax and the profit after tax of the NDB group excluding the exceptional equity capital gains earned by the Bank during the corresponding period last year increased by 15% and 8% respectively over the comparative period.

The products and services offered to the customers of the NDB Group include are Insurance from Eagle Insurance Co PLC (Eagle), Stock Brokering from NDBS Stockbrokers and Investment Banking from NDB Investment Bank, among others.

NDB Bank took another step towards consolidating its position in the financial sector by purchasing 23.86% of shares owned by Bank of Ceylon in the Capital Development & Investment Company PLC (CDIC) for Rs 1.15 b on 11th July 2008.

Prior to the purchase, NDB owned 75.8% of CDIC, a public quoted company in the Colombo Stock Exchange. The recent purchase of CDIC shares by NDB increases its effective shareholding in Eagle Insurance Company from 32.4% to 41.1%.

CDIC is now positioned as an effective vehicle for NDB's plans for local and regional growth. NDB Bank is among the top ten companies selected by the Business Today magazine while its Fitch Credit rating AA(lka) reflects the bank's strong financial profile in terms of its strong capital base, good profitability and asset quality.

NDB Group has a clear business strategy, which focuses on Commercial Banking (Corporate and Retail Banking), Emerging Corporates (SME), Project Finance, Specialized Commercial Markets, Investment Banking and Stock Brokering and Insurance.

The core banking revenue (net interest income, forex and commissions, etc) of NDB Bank grew by 11% over the corresponding period last year. The Bank's net operational income excluding equity income also increased from Rs 1,445 m to Rs 1,596 m during the current period (an increase of 10%).

The profit before tax and the profit after tax of the Bank excluding the exceptional equity capital gains earned by the Bank during the corresponding period last year increased by 16% and 15% respectively over the comparative period.

The global financial meltdown and the economic recession are impacting the Sri Lankan economy and the profitability of the banking industry. In this environment, NDB Bank has focused on consolidating and maintaining high quality assets. The bank has focused on stability and a strong balance sheet. The NDB Group remains one of the best-capitalized financial groups poised for future expansion in an improved economic environment.