The Nations Trust Bank (NTB) closed the nine months ending September 30 2014 with a post-tax profit of Rs.1,987 mn recording a growth of 24% over the corresponding period in 2013. The quarter performance was commendable too, with a post-tax profit growth of 35% over the previous period. Revenue growth of 24% for the period of 9 months was driven by net interest income growth of 19% and higher trading income attributed to foreign exchange and realized and M2M gains arising from the FIS portfolio.
Director and CEO Renuka Fernando said the first nine month results are very encouraging and are very much on track to achieve the targets set for the year.”
Our focus for the remainder of the year is to bring stability in our new core banking solution thereby realizing its technical capabilities to the fullest to support our enterprise level priorities. The improved trends in the business landscape is expected to continue and we are hopeful that the positive trends seen in credit growth will continue beyond 2014. We look forward to concluding yet another rewarding year,”she said.
Return on equity improved to 21.55% for the current year showcasing a well balanced performance. The year commenced with a lackluster demand for credit across the industry and mirroring industry performance, the Bank witnessed a sluggish growth in the loan portfolio in the first half of the year which picked up considerably in the current quarter. The loan book recorded a 10% increase for the nine months and a 15% YoY increase.
The reduction in interest rates saw both asset and liability yields declining. However the drop in cost of deposits outweighed the drop in loan yields thereby contributing to improved NIMs. The Bank relentlessly pursued strategies to improve the mix in higher yielding assets whist pushing for growth in low cost deposits. Low cost funds recorded a growth of 22% for the 9 months with CASA improving to 30% of deposits.
The Impairment charge for the current 9 month period amounted to Rs. 788.9Mn with the higher incremental impact over the previous period arising from credit card and leasing portfolios. Retail and SME have shown a significant improvement in portfolio quality whilst impairment on pawning is also at manageable levels. Bank has undertaken appropriate measures to strengthen its leasing and credit card recovery processes to stabilize these portfolios and the resulting impairment charge.
The capital position was sound at Rs.14.5 Bn with the Capital Adequacy Ratios, despite a drop over December 2013 being maintained at comfortable levels. The drop is mainly attributable to the expansion of the balance sheet of the Bank.
www.dailynews.lk
Director and CEO Renuka Fernando said the first nine month results are very encouraging and are very much on track to achieve the targets set for the year.”
Our focus for the remainder of the year is to bring stability in our new core banking solution thereby realizing its technical capabilities to the fullest to support our enterprise level priorities. The improved trends in the business landscape is expected to continue and we are hopeful that the positive trends seen in credit growth will continue beyond 2014. We look forward to concluding yet another rewarding year,”she said.
Return on equity improved to 21.55% for the current year showcasing a well balanced performance. The year commenced with a lackluster demand for credit across the industry and mirroring industry performance, the Bank witnessed a sluggish growth in the loan portfolio in the first half of the year which picked up considerably in the current quarter. The loan book recorded a 10% increase for the nine months and a 15% YoY increase.
The reduction in interest rates saw both asset and liability yields declining. However the drop in cost of deposits outweighed the drop in loan yields thereby contributing to improved NIMs. The Bank relentlessly pursued strategies to improve the mix in higher yielding assets whist pushing for growth in low cost deposits. Low cost funds recorded a growth of 22% for the 9 months with CASA improving to 30% of deposits.
The Impairment charge for the current 9 month period amounted to Rs. 788.9Mn with the higher incremental impact over the previous period arising from credit card and leasing portfolios. Retail and SME have shown a significant improvement in portfolio quality whilst impairment on pawning is also at manageable levels. Bank has undertaken appropriate measures to strengthen its leasing and credit card recovery processes to stabilize these portfolios and the resulting impairment charge.
The capital position was sound at Rs.14.5 Bn with the Capital Adequacy Ratios, despite a drop over December 2013 being maintained at comfortable levels. The drop is mainly attributable to the expansion of the balance sheet of the Bank.
www.dailynews.lk
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