NSB records Rs 1.9 b Q1 profit

The National Savings Bank’s (NSB) customer deposits increased from Rs 355.4 bn as at December 31, 2010 to Rs 368.7 bn recording 4 percent growth during the first three months of this year, the bank said in a statement.

The Group’s operating profit from ordinary activities before taxes increased to Rs 3.2bn recording a growth of 11 percent over the first quarter of year 2010, while profit after tax for the period increased to Rs 1.9bn recording a growth of 66 percent.

The lower growth in group profits was due to decline in market interest rates which resulted in lower capital gains compared to last year.

‘The Bank’s asset quality, capital and liquidity positions remain strong reflecting our prudent approach to business and effective risk management framework. NSB continues to focus on enhancing its service quality and expanding branch network to meet the growing needs and expectations of our customers,” Chief Executive Officer Hennayake Bandara commenting on the Bank’s performance and future outlook said.

Loans and advances as at March 31, 2011 stood at Rs 81.1 bn compared to Rs 84.1 bn as at December 31, 2010, the decrease being mainly due to the maturity of large value loans granted to corporates and conversion of administrative borrowings to long-term Treasury Bonds.

However, retail lending portfolio of the Bank recorded 5 percent growth and housing loans and pawning advances recorded 3 percent and 11 percent growth respectively during the first three months.

The Bank’s Government Securities and Other Investments portfolio, which account for nearly 80 percent of the total investments and loans & advances increased to Rs 315.2 bn as at March 31, 2011 from Rs 292.6 bn as at December 31, 2010 recording 8 percent growth.