NDB Group records Rs 1.7 billion profit for 9 months

The NDB Group’s Profit Attributable to shareholders for the nine months ended September 30, 2011 was Rs 1.7 billion as compared with Rs 1.5 billion for the comparative period (a 13% increase), which was due to a strong growth in core banking profits of 14% and improved performance of the group companies.

Chairman H Amarasuriya	CEO Russel de Mel

This is a commendable performance despite the marked to market equity losses of the Group amounting to Rs 100 mn during the current period, compared to the gain of Rs 532 million made in the comparative period of 2010, the Bank said yesterday.

NDB Bank’s PBT increased by 1% over the corresponding period last year. This was mainly due to NDB Bank incurring a loss of Rs 46 million as compared with an income of Rs 301 million on its quoted equity portfolio for the corresponding period last year. NDB Bank’s equity securities portfolio which is accounted on a marked to market basis was downsized in 2011. The significant drop in income from the quoted equity portfolio was due to the Milanka Price Index (MPI) declining from 7,061 as at 1 January 2011 to 6,045 as at 30 September 2011, in contrast to the MPI increasing by 3,703 points during the corresponding period in 2010.

NDB Group’s profit before tax for the third quarter was Rs 1.1 billion, a growth of 14% over the second quarter of 2011.

This has been backed by strong Net Income (Net Interest Income and Other Income) growth of 14% over the same period. Profit After Tax and Profit Attributable to shareholders of the NDB Group for the third quarter of 2011 also increased significantly by 28% and 29% respectively over the second quarter of 2011.

NDB Bank’s loans and advances and deposits portfolio grew by 31% (Rs 22 billion) and by 23% (Rs 13 billion) respectively over December 31, 2010. This impressive growth in the Bank’s lending portfolio and the deposit liabilities are ahead of the industry growth rates. The Bank’s total assets as at 30 September 2011 increased by 29% over 30 September 2010 from Rs 99.8 billion to Rs 128.6 billion.