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.
NDB Bank CEO
Eran Wickramaratne |
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. |