NDB Group posts healthy results in first half

Profit after tax tops Rs 762 million:

The NDB Group’s profit after tax for the second quarter ended June 30, 2010 grew to Rs 762 million.

Commenting on the Bank’s performance, CEO Russell De Mel said what is important to the stakeholder is sustainable profits and we have lived up to their expectations.

“The exceptional debt trading profits of Rs 733 million together with capital gains of Rs 303 million on the exit of some equity investments, made 2009 an exceptional year for NDB Bank. These one-off, non core banking profits enabled NDB Bank to distribute very attractive returns to the shareholders”, he said.

The NDB group’s profit before tax for the six months ended June 31, 2010 increased by 7 percent over the corresponding period last year excluding exceptional bond gains of Rs 607 million realised during the corresponding period last year.

The net income (net interest income, fee income and equity income) of the NDB group increased by 14 percent excluding the exceptional bond gains during the corresponding period last year.

NDB bank’s core banking profits, excluding equity income grew by 15 percent over the corresponding period last year, which confirms that growth in NDB Bank’s core business is being sustained under the improved economic conditions that are being experienced at present.

The Bank’s gross lending portfolio grew by Rs 1.7 billion (3 percent) over March 31, 2010 and by Rs 4.6 billion from the commencement of the current financial year.

NDB Bank’s substantial growth in disbursements during the second quarter, which resulted in the 8 percent growth in lending over the last year, reflects crystallisation of business proposals and positive sign of business confidence.

The increase in the gross lending portfolio of 8 percent over the last year end is on par with the industry growth as at June 30, 2010.

NDB Group is one of the highly diversified commercial banking groups in the country with regional operations in Maldives and Bangladesh.