NSB posts remarkable first quarter results
Pre-tax profit tops Rs 2 billion:
National Savings Bank shows remarkable first quarter performance by
recording a pre-tax profit of Rs 2. bn, a growth of 87 percent compared
to the corresponding quarter of 2009.
|
GM/CEO
Hennayake Bandara |
Commenting on the performance, NSB’s General Manager/CEO Hennayake
Bandara said the Bank’s operating profit from ordinary activities before
taxes increased to Rs 2.7bn recording a growth of 80 percent over the
same period last year, while profit after tax for the period increased
by 59 percent to Rs 1.1bn.
The main reasons behind the increase in after tax profit are overall
increase of interest income despite declining interest income on loans
and advances and decrease in interest expenses on deposits.
NSB’s nett interest income grew to Rs 2.5bn, a growth of 252 percent
during the first quarter of 2010 compared to same period of 2009. Non
interest income has declined by 13.5 percent to Rs 1.7bn from Rs 1.9 bn
in first quarter 2009.
The interest expenses of the Bank decreased by 10 percent to Rs
8.1bn, mainly due to re-pricing of term deposits at lower rates.
Bank has mobilized Rs 8.8bn in deposits during the period while
increasing total deposits to Rs 347.8bn. Though the increase in deposit
base is marginal, the effective cost of funds dropped as a combined
result of repricing deposits at lower rates and increase in savings
deposits.
Total assets of the Bank stood at Rs 366.1bn at end of March 2010
against the Rs. 306.7bn at the end of March 2009.
Bank’s non interest expenses grew only by 8.4 percent to Rs 1.4bn
during the first quarter compared to the same period in 2009.
Personnel costs have been well managed with a marginal increase of
0.7 percent to Rs 706 mn compared to corresponding period last year. The
Bank’s effective tax rate increased to 59.4 percent in first quarter
2010 compared to 53.4 percent for the corresponding period 2009 and this
was mainly due to the increase in VAT on Financial Services.
The Bank has shown a positive disbursement in loans and advances over
the last balance sheet as at December 31, 2009 by recording a moderate
growth of 5.6 percent. Further, the total non performing loans decreased
by 4.3 percent over the last balance sheet mainly due to increased
efforts on recoveries.
As a result, Non Performing Loans (NPL) ratio improved to 3.5 percent
from 3.8 percent at the end of 2009 and Bank’s NPL ratio is well below
the industry average. The Group’s operating profit from ordinary
Activities Before Taxes increased to Rs 2.8bn recording a growth of 58
percent over the same period last year, while profit after tax for the
period increased by 37 percent to Rs 1.2bn.
NSB continued to increase its branch and ATM network during the
period by adding nine new ATMs and seven new branches, thereby improving
customer care and quality of services provided by the Bank.
NSB became the only Sri Lankan Bank to get the AAA (lka) rating by
Fitch Rating for the seven consecutive year.
The rating also confirms the Bank’s trustworthiness and ensures
stability for our customers who come from all walks of life.
“We do not want to rest on our laurels; improving quality in every
work aspect of our Bank is one of our main goals” Hennayake Bandara
said.
|