NTB posts Rs 494 m profit for first half

Nations Trust Bank PLC (NTB) Group has achieved a profit after tax of Rs 494.1million for the six months ending June 30, 2010 a significant 49 percent growth over the same period in 2009.

The Bank recorded post tax profits of Rs 443.7million, a substantial 110 percent increase over the same period in 2009.

NTB Director/CEO Saliya Rajakaruna said the second quarter 2010 represents the fourth consecutive quarter since September 2009 in which NTB has reported continued growth.

Loans and Advances increased by 12 percent to Rs 41.5 billion, deposits stood at Rs 45.8 billion, an increase of 3 percent with low cost funds contributing a healthy 29 percent.

The capital position of the group stood at Rs 6.2 billion resulting in a healthy Capital Adequacy Ratio of 15.3 percent. The Bank's net interest income grew by 24 percent to Rs 2 billion and net income grew by 18 percent to Rs 3 billion reflecting the underlying growth of the balance sheet and the improvement in margins primarily arising from the lower cost of funds.

Accordingly, Net Interest Margin improved from 4.85 percent in the comparative period for 2009 to 5.47 percent. Compared to 2009, non-interest income recorded a growth of 7 percent. The increase in non-interest expenses was limited to 11percent. As a result of effective cost management, the cost to income ratio is reported at a commendable 57 percent, showing a 4 percent reduction compared to same period in 2009. The above operating dynamics resulted in the PBT margin being uplifted from 8 percent in 2009 to 19 percent in 2010.