NDB Group records Rs 1 b profit in 1 H
The NDB Groupís profit attributable to shareholders for the six
months ended June 30, 2011 recorded a significant growth of 37 percent
over the corresponding period last year to reach the Rs 1 billion
landmark for the period, propelled by NDB Bankís strong core banking
profits and improved performance of the group companies.
Today, with its presence in full-fledged banking, capital markets and
insurance, the Group positions itself to be unique, and differentiates
itself from its peers as a Financial Services Group.
Chairman Hemaka Amarasuriya and CEO Russel de Mel
Since its merger with NDB bank (formerly ABN Amro) NDB has
transformed itself to be a fully fledged commercial bank, servicing
corporate, SME and Retail clients, throughout the country.
NDB currently has 53 branches in all parts of the country including
five in the North and East.
The second quarter performance of the Bank was significantly higher
than the performance for the first quarter. NDB Bankís Profit Before Tax
for the second quarter was Rs 971 million, a growth of 37 percent over
the first quarter of 2011. This has been backed by strong Net Income
growth of 16 percent over the same period.
The profit after tax of the Bank for the second quarter was 31
percent higher than the profit after tax for the first quarter of 2011.
Profit After Tax of the Bank increased even more significantly by 45
percent over the 12 month period, partly due to the reduced tax rates
applicable from 2011.
The loans and advances and deposits portfolio grew by 23 percent (Rs
16 billion) and by 14 percent (Rs 8.6 billion) respectively over
December 31, 2010. This impressive growth in the Bankís lending
portfolio and the deposit liabilities are well in line with industry
The Bankís total assets as at June 30, 2011 increased by 28 percent
over 30 June 2010 from Rs 94.9 billion to Rs 121.2 billion.
Despite the significant growth in the Loan portfolio in all the
sectors, NDB Bank has been able to contain its Non Performing Loans (NPL)
ratio to an all time low of 1.58 percent which is one of the lowest in
the industry, due to prudent underwriting policies and well-defined risk
The Bank has been able to achieve this low level of delinquencies by
the use of strong credit analysis techniques and with the use of
proactive risk management practices.
The provision cover on NPLs was at 73.5 percent as at June 30, 2011
with an Open Loan Position of 2.98 percent, which signify minimum amount
of stress on the Bankís equity, on account of un-provided delinquencies.
The Groupís Tier 1 Capital Adequacy Ratio of 14.53 percent and a Tier
1 and 2 ratio of 16.55 percent are well in excess of the regulatory
minimum of 5 percent and 10 percent respectively, providing ample
capacity for the rapid expansion planned for the future.