NDB reports significant profit growth in 1H 2012

The NDB Group has delivered yet another strong performance for the First half of 2012 recording a commendable profit after tax of Rs 1,362 million to its shareholders, which is an increase of 36 percent compared to the previous year.

NDB Chairman Hemaka Amarasuriya	NDB CEO Russel de Mel

The Chairman of the bank Hemaka Amarasuriya stated that ‘the impressive results are attributable to the Bank’s overall strong position and the continued focus on providing solid returns and dividends to our shareholders. Results have been achieved in an environment where the impact of the global financial crisis continues to linger and credit growth remains low with business and consumer confidence fragile given the volatility and uncertainty in the markets.

Despite volatility in interest rates and growing concerns over higher borrowing cost and the prevailing downward trend in exchange rates, the bank has reported a commendable second half due to the effective execution of our strategic priorities of customer satisfaction, business banking, technology, operational excellence and profit growth.’ The results are characterised by the bank’s net income (NII, fee and forex income) increasing by 52 percent to Rs 4,746 million, Net interest income of Rs 2,579 million and fee and forex income of Rs 1,512 million grew by 27 percent and 72 percent respectively over the comparative period. The profit before tax of Rs 2,757 million recorded an increase of Rs 1,078 million or 64 percent compared to the previous year.

The reported earnings for the bank also include equity income of Rs 536 million on the sale in investments of NDB Investment Bank Ltd, NDB Stock Brokers (Pvt) Ltd and of the 5 percent direct holding in AVIVA NDB Insurance PLC, to NDB Capital Holdings PLC (formerly known as Capital Development and Investment Company PLC). Following a strategic restructuring of the group,s corporate equity holdings, the re-launch of Capital Development and Investment Company PLC under a new corporate identity named ‘NDB Capital Holdings PLC’ further strengthens NDB group’s universal banking capabilities comprising of Investment Banking, Wealth Management, Stock Broking, Private Equity and Insurance.

We have no doubt that by leveraging NDB’s unparalleled brand strength, and geographical reach, the subsidiary will play a key role in mainstreaming a substantial part of the shadow economy by providing better access to financial services.