Friday 14 August 2015

NDB profits top Rs 2b in 1H

NDB Bank and Group for the first half of 2015,has recorded a profit after tax PAT of Rs 2 billion for the first half of 2015.

This is a 7% Year-on-Year (YoY) growth as compared to June 30,2014.Total operating income of the Bank grew by 5% compared to H1 2014, to reach Rs 6,241 million.

NDB, Chief Executive Officer Rajendra Theagarajah said the Bank is resolute in its strategic growth momentum."

NDB has experienced considerable improvement in its share in the market, and will continue to grow its share through competitive and innovative product offerings and excellent customer service," he said.

Net Interest Income (NII) declined marginally by 3% due to the relatively low credit growth environment which prevailed in the country.

Net fee and commission income which is a primary contributor towards core-banking operations increased by 12% compared to the prior period. The Bank's Other operating income also increased by Rs 602 million, to reach Rs 1,044 million for the period, which included equity income of Rs 965 million as compared with Rs 431 million for the prior period.

At a Group level, total operating income declined marginally by 3% to reach Rs 6,136 million. The decrease was primarily due to the reduction in Net gains from NDB Group's total financial investments portfolio.However, NDB Group's Net fee and commission income recorded a significant growth of 28% over the prior period due to the increased performance of the fee based Group Companies.

The Bank's Impairment charges for loans and other losses for the first six months of 2015 was Rs 198 million, compared to Rs 222 million of 2014, a reduction of Rs 24 million which was primarily due to the improved quality of the Bank's loan portfolio.

Total operating expenses grew by 16%, an increase of Rs 411 million compared to the prior period.

The main cost driver during the period under review was 9 new branches which were added to the Bank's branch network.At a Group level, the operating expenses of Rs 3,280 million grew by 18% over the first half of 2014.
www.dailynews.lk

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