The National Savings Bank’s operating profit at Rs. 16.1 billion recorded 4% increase as compared to the previous year.
These reported profits were achieved despite lower interest margins on account of an elevated market interest rate scenario, the bank said yesterday.
The growth in its traditional lines of business enhanced fee based income and improvement in credit quality of its asset portfolio resulting in lower provisioning being the main contributory factors leading to this growth in profitability.
Interest income of the bank grew by 11% to reach Rs. 86.4 billion whilst the net interest margin reduced to 2.9% in 2016 from 3.3% in 2015. The bank has augmented these market challenges with growth in volumes to post an increased profit. The total assets of the bank surpassed Rs. 900 billion and are currently at Rs. 911.7 billion, whilst the deposit base grew by 10% to reach Rs. 657 billion by year 2016. The bank’s loans and advances portfolio grew by 19% primarily assisted by advances within the retail sector. Its Non Performing Loan ratio at 1.55% testifies prudent management of its asset portfolio with emphasis on strengthening its balance sheet.
A contribution of Rs. 19.2 billion to the government in the form of dividends, levies and taxes is the highest in its history, thus signifying its critical role within the state sector. As another unique initiative, the Bank raised Rs. 6.0 billion from the local market through a private placement of debentures to strengthen the Tier II capital. The Bank’s Tier 1 capital adequacy ratio stood at 12.5% while the total capital adequacy was 14.7% at the end of the year 2016.
www.dailynews.lk
These reported profits were achieved despite lower interest margins on account of an elevated market interest rate scenario, the bank said yesterday.
The growth in its traditional lines of business enhanced fee based income and improvement in credit quality of its asset portfolio resulting in lower provisioning being the main contributory factors leading to this growth in profitability.
Interest income of the bank grew by 11% to reach Rs. 86.4 billion whilst the net interest margin reduced to 2.9% in 2016 from 3.3% in 2015. The bank has augmented these market challenges with growth in volumes to post an increased profit. The total assets of the bank surpassed Rs. 900 billion and are currently at Rs. 911.7 billion, whilst the deposit base grew by 10% to reach Rs. 657 billion by year 2016. The bank’s loans and advances portfolio grew by 19% primarily assisted by advances within the retail sector. Its Non Performing Loan ratio at 1.55% testifies prudent management of its asset portfolio with emphasis on strengthening its balance sheet.
A contribution of Rs. 19.2 billion to the government in the form of dividends, levies and taxes is the highest in its history, thus signifying its critical role within the state sector. As another unique initiative, the Bank raised Rs. 6.0 billion from the local market through a private placement of debentures to strengthen the Tier II capital. The Bank’s Tier 1 capital adequacy ratio stood at 12.5% while the total capital adequacy was 14.7% at the end of the year 2016.
www.dailynews.lk
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