National Development Bank PLC (NDB) concluded the first half of the financial year with a record Profit After Tax (PAT) of Rs 2.3 billion (81% growth YOY).
This is the highest recorded PAT for the Bank in its history for the first half of a financial year, which was supported by commendable growth in core banking operations and dividend contributions from Group companies.
The reported growth levels for the Bank’s Profit Before Tax (PBT) of Rs 3,814 million was 70% over the comparative period of H1 2016. It is noteworthy to mention that the PBT and PAT of the Bank, excluding the Group dividends grew impressively by 56% and 63% respectively, which is a clear reflection of the strong performance of the core banking operations.
The Balance Sheet grew by 9% in 6 months and stood at Rs 365 billion. This was supported by the growth in loans and advances to customers which grew by 11%, (by Rs 24.8 billion) and deposits by a notable 17%, (by Rs 35.5 billion), furthering the growth momentum achieved in the first quarter of the year.
The Director, CEO of NDB, Dimantha Seneviratne, sharing his views on the performance of the 1st half, mentioned that the Bank has been able to well maintain the sound growth coming from all the sectors diversifying the core banking income base.
Net interest income (NII) recorded a 17% growth over the corresponding period to Rs 4,746 million. This growth is satisfactory in an environment where the loan book has grown by 11% where further volatility and downward trend in interest rates are noted.
Net fee and commission income grew by 6% in H1 2017 over H1 2016 up to Rs 1,141 million. The Bank envisages stronger growth in net fee and commission income in to the future. Improving the net interest income to net fee and commission ratio up 30:70 ratio is one of the key strategic priorities of the Bank.
Net gains from trading of Rs 533 million grew by 17% in H1 2017 over the comparative period. Other operating income was Rs 1,197 million and included dividend earned from the NDB Group companies.
The total impairment charges for H1 2017 was Rs 581 million, a reduction of 30% compared to H1 2016. The sound credit review and monitoring processes have resulted in reduced impairment charges which are also reflected in an improved Non-Performing Loan ratio (NPL) for H1 2017.
Total operating expenses were kept under close watch with only a 5% increase over the prior period. Managing growth in operating costs, amidst accelerated business growth and inflation is one of the key challenges managed well via structured and focused cost management initiatives, as opposed to cost cuts.
The Bank made encouraging strides in the Balance Sheet (growth of 9%) during the first half of 2017 to reach Rs 365 billion with a quantum growth of Rs 30 billion. Asset growth was supported by the growth in loans to customers by an 11% growth, to close at Rs 252 billion, (by Rs 24.8 billion). its grew by an impressive 17%, (by Rs 35.5 billion).
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This is the highest recorded PAT for the Bank in its history for the first half of a financial year, which was supported by commendable growth in core banking operations and dividend contributions from Group companies.
The reported growth levels for the Bank’s Profit Before Tax (PBT) of Rs 3,814 million was 70% over the comparative period of H1 2016. It is noteworthy to mention that the PBT and PAT of the Bank, excluding the Group dividends grew impressively by 56% and 63% respectively, which is a clear reflection of the strong performance of the core banking operations.
The Balance Sheet grew by 9% in 6 months and stood at Rs 365 billion. This was supported by the growth in loans and advances to customers which grew by 11%, (by Rs 24.8 billion) and deposits by a notable 17%, (by Rs 35.5 billion), furthering the growth momentum achieved in the first quarter of the year.
The Director, CEO of NDB, Dimantha Seneviratne, sharing his views on the performance of the 1st half, mentioned that the Bank has been able to well maintain the sound growth coming from all the sectors diversifying the core banking income base.
Net interest income (NII) recorded a 17% growth over the corresponding period to Rs 4,746 million. This growth is satisfactory in an environment where the loan book has grown by 11% where further volatility and downward trend in interest rates are noted.
Net fee and commission income grew by 6% in H1 2017 over H1 2016 up to Rs 1,141 million. The Bank envisages stronger growth in net fee and commission income in to the future. Improving the net interest income to net fee and commission ratio up 30:70 ratio is one of the key strategic priorities of the Bank.
Net gains from trading of Rs 533 million grew by 17% in H1 2017 over the comparative period. Other operating income was Rs 1,197 million and included dividend earned from the NDB Group companies.
The total impairment charges for H1 2017 was Rs 581 million, a reduction of 30% compared to H1 2016. The sound credit review and monitoring processes have resulted in reduced impairment charges which are also reflected in an improved Non-Performing Loan ratio (NPL) for H1 2017.
Total operating expenses were kept under close watch with only a 5% increase over the prior period. Managing growth in operating costs, amidst accelerated business growth and inflation is one of the key challenges managed well via structured and focused cost management initiatives, as opposed to cost cuts.
The Bank made encouraging strides in the Balance Sheet (growth of 9%) during the first half of 2017 to reach Rs 365 billion with a quantum growth of Rs 30 billion. Asset growth was supported by the growth in loans to customers by an 11% growth, to close at Rs 252 billion, (by Rs 24.8 billion). its grew by an impressive 17%, (by Rs 35.5 billion).
www.dailynews.lk
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