NDB Group reported a profit before tax of Rs.2.35 billion for the nine months ended 30th September 2008 as compared to Rs.2.31 billion for the corresponding period last year. A press release stated that profit after tax of the group was Rs.1.15 billion, down from Rs.1.26 billion for the comparative period last year. The Profit Before Tax and the Profit After Tax of NDB group excluding equity capital gains earned by the Bank during the corresponding period last year increased by 15% and 8% respectively over the comparative period.
The Bank stated that the global financial meltdown and the economic recession are impacting the Sri Lankan economy and the profitability of the banking industry. In this environment, NDB Bank has focused on consolidating and maintaining high quality assets and focusing on stability and a strong balance sheet.
The press release further stated that the core banking revenue (net interest income, forex and commissions, etc) grew by 11% over the same period last year. The Bank's net operational income excluding equity income also increased by 10% to Rs.1,596 million during the current period from Rs.1,445 million to Rs.1,596 million. The Profit Before Tax and the Profit After Tax of the Bank excluding the exceptional equity capital gains earned by the Bank during the corresponding period last year increased by 16% and 15% respectively over the comparative period.
The Bank's NPL's to gross lending portfolio as at 30 September 2008 was 2.25% as compared with 2.29% as at the year-end and is one of the lowest in the banking industry, according to the press release.