NDB Capital Holdings profits surge by 287 %

Ashok Pathirage

Vajira Kulatilaka

NDB Capital Holdings PLC (NCAP) posted strong third quarter results recording a net profitability of Rs 206.9 million at the company level. This was almost a threefold jump in profitability compared to a Net Profit of Rs 53.4 million recorded during the same quarter the previous year.

Net profit for the nine month period ended September 30, 2012 resulted in a growth of 159 % which amounted to Rs 326 million compared to previous year’s figure of Rs 125.5 million. At group level, the Net profit for the first nine months of 2012 was Rs 353.1 million, a 68.5 % growth over the same period, the prior year.

This significant growth in profitability was achieved due to a series of strategic initiatives undertaken earlier in the year. The company was re-launched in June 2012 positioning itself as the only listed full service investment bank in the country offering investment banking, wealth management, stock broking and private equity. The increase in profitability at the company level was driven by a prudent asset allocation policy and efficient investment strategies.

During the period ended September 30, 2012 the company made strategic investments to the value of approximately Rs 890 million to acquire 100 % stakes in NDB Investment Bank Limited (NDBIB), NDB Stockbrokers (Private) Limited and an additional 5 % stake in Aviva NDB Insurance PLC. Furthermore, NDBIB, the flagship company in the group, was recognized as the “Best Investment Bank” in Sri Lanka by the prestigious Euromoney Magazine at its “Awards of Excellence 2012”.

Chairman, Ashok Pathirage commenting on the performance said that “NCAP’s performance was commendable despite the tough conditions which prevailed both in the money market and the capital market”.

He further stated that, “NCAP, now led by a team of capital market experts with the recent changes in the management structure, is well positioned to extract the synergies with the commercial banking operations of NDB Group and offer an unparalleled product range to its customers”.

Vajira Kulatilaka, CEO said: “We have formulated a unique knowledge-based business model that will help us to sustain our leadership position in the market.

The successful strategies we have implemented in the recent past would further improve the business performance of the company. Backed by NDB Group’s strategic alliance with DBS Group of Singapore, we are planning to further contribute towards the development of the Sri Lankan capital markets by executing landmark transactions and other strategic initiatives”.

NCAP is a 99.6 % owned subsidiary of NDB Bank.