NDB reports strong performance
NDB’s performance for the nine months ended September 30, 2012
indicates a strong growth momentum. The net profit after tax of Rs 2,342
million for the period show an increase of Rs 804 million (52 percent)
compared to the prior year corresponding period.
|
|
Hemaka Amarasuirya |
Russell De Mel |
The impressive performance during the period results from the
continued focus on achieving a number of main objectives, including
re-focusing our business and pursuing a growth agenda. Key initiatives
aimed at developing SME and retail segments and improving asset quality
remain on track. The bank has expanded its distribution network and
continues to work on a number of IT initiatives which enabled to offer
service enhancements for its customers and bring substantial
improvements in operating efficiency. The interim performance is
contributed by growth in the core banking profits and the net interest
income grew by 25 % to Rs.4,032 million and Forex income grew by Rs.561
million during the period.
The reported results also include the equity income of Rs.536 million
gained from the sales proceed on the sale of investments of NDB
Investment Bank Ltd, NDB Stock Brokers (Pvt) Ltd and the 5 percent
direct holding of Aviva NDB Insurance PLC, to NDB Capital Holdings PLC.
NDB continues to benefit from the group synergies and provides a
unique value proposition to its customers providing a wider array of
products and services. The consolidated group performance is also
commendable with profit attributable to the shareholders increasing by
Rs.334 million to Rs.2,041 million over the corresponding period last
year.
The bank’s basic earnings per share of Rs.17.23, indicates an
increase of 40 percent over September 30 2011. The bank’s return on
average assets and equity for the current period was 1.91 percent and
20.83 percent respectively, compared to 1.74 percent and 16.63 percent,
respectively, over the nine months of 2011.
The bank's loans and advances increased to Rs.113.0 billion as at
September 30, 2012, an increase of Rs.19.0 billion, or 21 percent,
compared to September 30, 2011. The NPLs to gross lending portfolio of
1.35 % as at September 30 2012 continues to remain healthy due to the
proactive risk management practices of the bank, and is well below the
industry average. The liquidity and our capital ratios remain strong
with a Total Risk Based Capital Ratio of 12.6 %, well above the 10
percent considered “adequately” capitalized by bank regulators.
During the third quarter the bank continued to build its distribution
network to provide greater accessibility and convenience to its clients
by expanding its footprint in the Northern region with the opening of
the branch in Chunnakam. NDB Bank continue to remain committed towards
SME development in the country and opened a dedicated, state-of-the-art
SME Centre in Kurunegala with the aim to provide a one stop shop for the
diverse needs of entrepreneurs in the area.
NDB Group recently announced its agreement with American
International Assurance Company Limited (AIA) of Hong Kong, one of the
largest insurance companies in the world with an exclusive focus on the
Asia-Pacific region to sell NDB’s shareholding in the Aviva NDB Holdings
Lanka (Private) Limited (Aviva NDB Holdings).
Russell De Mel, CEO said: “The third quarter results again prove the
robustness of our business model improving risk return profile and our
foot print in the country whilst contributing towards the National
Development. The performance during the period reflects sound execution
of our business strategies, which center on operating consistency and a
disciplined approach to asset and cost management. We thank our
customers for their continued support and our staff for their commitment
and contribution to the bank's success.”
NDB Chairman, Hemaka Amarasuirya commenting on the performance said
that “the bank expects to build on the strong performance achieved
during the interim period in 2012, and remains well-positioned to
capitalize on the broad economic trends that have large-scale potential
in the country and the region. We have some of the most talented bankers
in the business today. They share a commitment to building long-term
client relationships by combining exemplary service and exceptional
banking expertise.” |