NDB reports strong financial results in 2012 first quarter
NDB reported strong financial results for the first quarter ended
March 31, 2012 and has made significant progress during the period. The
banking revenue for the quarter was Rs 2,064 million, an increase of Rs
611 million, or 42 percent, over the same period in 2011. The profit
after tax during the quarter increased by Rs 506 million, or 115 percent
compared to the same period in the prior year.
Chairman, Hemaka Amarasuriya |
CEO Russell De Mel
|
The reported earnings included one off equity income of Rs 271
million on the sale of its investment in a 100 percent owned subsidiary,
NDB Investment Bank Ltd (NDBIB) and of the 5 percent direct holding in
AVIVA NDB Insurance PLC, to its subsidiary Capital Development and
Investment Company PLC (CDIC) in March 2012.
NDB continues to position itself as the only financial services group
in the country, with subsidiaries and associates in investment banking
(locally and regionally), stock broking, and wealth management, which
make up the capital markets cluster, and insurance. This divestment to
the bank's 99.6 percent owned subsidiary CDIC was carried out as part of
the overall Group's corporate restructuring exercise, with which, CDIC
now positions itself as the diversified financial services investment
arm of NDB Group. Accordingly, these investments will complement CDIC's
existing strategic investments in AVIVA NDB Insurance PLC and NDB AVIVA
Wealth Management Ltd.
Hemaka Amarasuriya, Chairman,NDB said, “We are excited about our
first quarter results. We were able to continue the strong momentum
built in 2011, and will seek further growth opportunities for the bank
throughout 2012. Our discipline in the execution of our strategies has
produced excellent first quarter results. Our focused management on all
of our banking operations is expected to deliver solid growth into the
future and enhance shareholder value.”
The bank's profit after tax growth after excluding this one-off
income shows an increase of 52 percent compared to the 1st quarter of
2011.
The basic earnings per share were Rs 17.96, an increase of 68 percent
over the 1st quarter of 2011.
The NDB Group's Profit Attributable to Shareholders for the quarter
increased by 19 percent over the prior period. The growth in NDB group's
PAS was lower than the Bank's Profit after Tax as the one-off equity
income of Rs 271 million is eliminated in consolidating the NDB results.
The Bank's Return on Average Assets and Equity for the first quarter of
2012 were 2.1 percent and 22.8 percent respectively, compared to 1.6
percent and 15.0 percent, respectively, over the 1st quarter of 2011.
The Bank's loans and advances increased to Rs 105.2 billion as at
March 31, 2012, an increase of Rs 27.4 billion, or 35 percent, compared
to March 31, 2011. The NPLs to gross lending portfolio was 1.36 percent
as at March 31, 2012 end compared to 1.82 percent as at March 31, 2011.
The NPL ratio of the Bank continues to remain healthy and is well below
the industry average. The Bank has been able to achieve this low level
of delinquency due its proactive risk management practices. The Bank's
robust balance sheet and liquidity means that the Bank is able to
continue its lending and maintain a strong capital adequacy.
Additionally, total deposits increased to Rs 88.4 billion as at March
31, 2012, a 46 percent increase from the deposit level as at March 31,
2011.
The growth in assets and deposits was the result of continuing
organic growth through the Bank's existing branch network. The Bank also
expanded its network to 62 branches with additional branches in
Hambantota and Kaduwela.
NDB continued its active engagement in SME banking with agriculture,
handicrafts, manufacturing, trading and distribution, fisheries, and
dairy sectors to develop the entrepreneurs in the country. During the
first quarter, NDB also conducted SME capacity-building workshops in
Moratuwa, Pilimathalawa, Ambalantota and Kurunegala in an effort to
enrich their knowledge base.
As part of the NDB Group, the NDB Investment Bank had a positive
start to the financial year, showing dominance in the country's
investment banking arena by successfully managing the only two IPOs to
debut on the CSE in the first quarter of 2012. The Access Engineering
IPO raised Rs. 500 million, while the Mackwoods Energy IPO raised Rs.
350 million; both were oversubscribed on the opening day. The Investment
Bank also structured several securitization deals for Finance Companies
in the first quarter of 2012 and collectively raised over Rs 1.1
billion, asserting ourselves as the leading investment bank in the
country.
Commenting on the Group's future plans, Russell de Mel, CEO NDB Bank
stated “the challenge for NDB Group on its way forward will be to
maintain the growth momentum in terms of assets, liabilities and
distribution whilst containing costs. NDB Group will leverage on
technology and Innovation heavily as it enters the first half of 2012.
Hence, I request you to watch this space as we continue to enhance our
customer experience”. |