NDB Capital Holdings records 932 mn profit at group level

NDB Capital Holdings PLC ("NCAP" or "the Company") recorded the best financial year of its history, outperforming both 2012 and 2006 results adjusted for the capital gains that resulted from the sale of stakes held in Aviva NDB Insurance PLC(in 2012) and Eagle Insurance Company Limited (in 2006). The NCAP Group’s consolidated income increased by 85% to Rs. 1,469Million during the year 2013 from Rs. 792 Million in 2012 (adjusted for Aviva capital gain).This translated to a Group bottom line ofRs. 932 Million, a year on year increase of 21% (adjusted 2012).

At the Company level, NCAP recorded an impressive revenue growth of 41%, increasing the total revenue to Rs. 784Million in 2013 from Rs. 556 Million (adjusted) in the previous year. Net profits too rose toRs. 681Million from Rs. 488million (adjusted), a rise of 40%. Profitability was mainly fueled by efficient asset allocation towards high yielding investments and tax efficient investment strategies.

The restructuring carried out at NDB Group in creating a pure capital markets play at NCAP, is gradually starting to show results with the improved ROE (adjusted 2012)at both company and Group level. The Group ROE increased to 16.1% for the financial year 2013 from 13.8% in 2012. In the same period, the Company improved its ROE from 10.3% to 12.8%. Looking back at the ROEs prior to the restructuring, the Group has shown a highly impressive turnaround with the consolidated ROE which stood at 7.0% in 2011 increasingto 16.1% by the end of 2013. The growth in Group profitability was supported by the strong performance of the fee based businesses which are carried out through NCAP’s subsidiaries,NDB Investment Bank Limited, NDB Securities (Pvt) Limited and NDB Wealth Management Limited.

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