NTB continues growth momentum
Nations Trust Bank closed the six-months period ending June 30, 2011,
at the group level, with pre-tax profits of Rs.1,124Mn, up 19 percent
over the corresponding period in 2010 while post-tax profits grew from
Rs.494mn to Rs 736mn, an increase of 49 percent.
Commenting on the results and achievements, Director and CEO Saliya
Rajakaruna, said they have performed creditably during the first six
months of 2011 and recorded a noteworthy financial performance. More
importantly, the results reflect continuing growth and sustainable
"The outlook for the rest of the year remains positive with private
sector credit growth continuing, driven by an environment conducive for
business," he said.
Group net revenue recorded a 5 percent increase over the previous
year the key contributory factor being the increase in non-funds based
Group net interest income was fractionally below the previous year
due to narrowing margins though this impact was mitigated by the growth
in business volumes, timely re-pricing of deposits and a shift in the
deposit mix towards low cost funds.
The focused approach to enhance non-funds based income resulted in a
substantial growth of 23 percent compared to the previous year.
The bank generated non-funds based income from capital market
activities as well as from trade and credit card related business lines.
Trade finance volumes, both on imports and exports picked
significantly compared to the previous year with the resultant income
increasing by 36%.
Credit card related non-fund based income grew by 22 percent for the
period under review with increased consumer spend and the roll out of a
new card acquisitions program.
Foreign exchange income too showed a significant growth despite the
relatively stable exchange rate that prevailed during the period.
During the period, group operating expenses recorded an increase of
15 percent over the 1H 2010.