NSB mobilises Rs 23 billion deposits in first half

NSB has mobilised Rs.23 billion deposits during the first half and total deposit base of the Bank has increased to Rs 378 billion recording a growth of 6.4 percent.

Savings deposits recorded a growth of 7 percent passing Rs. 100 billion mark while term deposits increased by 6 percent to Rs.275 billion.

Government securities portfolio of the Bank recorded a growth of 8 percent to reach Rs.296 billion while wholesale lending portfolio recorded a significant growth of 156 percent during the first half.

Net interest income of the Bank reported an increase of Rs.1.3 billion from Rs. 4.9 billion in the corresponding period of 2010.

Commenting on the Bank’s performance, General Manager and CEO Hennayake Bandara said, “The Bank continued to pursue its efforts to achieve its strategic targets at all levels and continued to improve its performance in all operational activities. “As a result we were able to maintain our balance sheet growth,” he said.

Total income decreased by 5 percent to Rs. 23 billion mainly due to low interest income earned on government securities which are repriced at lower yields. Non-interest income declined to Rs 584 million in first half, from Rs 644 million in 1H’10, due to lower capital gains earned on trading securities.

Interest expense decreased by Rs 2 billion from Rs 17billion same period last year, mainly due to repricing of term deposits at lower rates. Total operating income of 1H’11 reported a marginal increase of 1 percent over 1H’10, reaching Rs 6 billion. The lower growth in total operating income was mainly attributed to significant decline in interest income from government securities investments and other income.