Sunday 31 May 2015

NSB ups 1Q pre-tax profit by 32% to Rs. 3 b

National Savings Bank said yesterday it has increased its first quarter profit before tax by 32% to Rs. 3 billion. 

“This is despite a Rs. 1.1 billion one off gain reported during 1Q last year. Therefore, on an organic business as usual basis, the growth is most impressive at 137%,” NSB added.


Net interest income of the bank increased by 73% to Rs. 6,968 million in 1Q 2015 as compared to Rs. 4,026 million recorded for 1Q last year. Total operating income comprised of net interest income, net gain from trading and financial investments and other income, increased by 21% to Rs. 6,792 million from Rs. 5,635 million recorded in correspondent period last year. While net operating income increased by 26% to Rs. 6,166 million from Rs. 4,891 million recorded in 1Q 2014.

Net interest margin also improved to 3.56% by end of March 2015 from 2.98% recorded at the end of 2014. Also return on average assets (before tax) increased to 1.52% as at 31 March 2015 from 1.46% recorded as at 31 December 2014.


The bank also witnessed a positive change in deposit mobilisation mix during the first three months of the year and total mobilisation for the period was 6,036 million which consisted of Rs. 5,612 million savings deposits. Total deposits of the bank stood at Rs. 558 billion at the end of 1Q 2015.

Total loans and receivables recorded a growth of 5.4% during the first quarter when excluded the negative growth of pawning advances and with pawning advances growth rate was 3.9%. Total assets of the bank stood at Rs. 785.2 billion at the end of 1Q, 2015.

In another positive change the bank’s gross and net Non-Performing Loans (NPL) ratios stood at 7.19% and 6.76% respectively down from 7.80% and 7.38% at the end of 2014.
The bank’s Tier 1 capital adequacy ratio reduced from 20.46% to 19.93%, while total capital adequacy for the reviewed quarter reduced to 18.45% from 18.98%. These ratios however, remain well above the regulatory standards for well capitalised banks. Liquidity ratio of the Bank stood at 83.24% by the end of March 2015, which is well above the regulatory requirement of 20%.

Widening its reach, the bank opened four new branches at Thambiluvil, Periyakallar, Galenbindunuwewa and Horowpathana increasing the total branch network of the bank to 240 as at 31 March 2015. The bank is scheduled to open several more branches in under penetrated areas going forward as well.
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