NTB growth momentum continuesView(s):
The Nations Trust Bank (NTB) closed the first half with a post tax profit of Rs. 893 million, up 21 per cent from the same (January-June period last year). Core-earnings posted good growth over 2011 with revenue increasing at a higher rate of 13 per cent compared to an expense growth of 11 per cent, the bank said in a media statement.
The performance was primarily driven by four strategic business units comprising of Retail & SME, Credit Cards, Corporate Banking and Treasury which recorded both volume growth and profit growth for the period. Leasing also performed well despite industry wide challenges arising from the changes in the import tax structure for vehicles. The bank continued to progress well in diversifying its portfolio and earnings base while optimizing returns in a controlled growth environment.
A sound credit risk management framework in the bank ensured a healthy NPL ratio of 2.91 per cent compared to 2.79 per cent reported in December 2011. Loan loss provisions which comprises of specific provision write-back and a general provision charge in line with the asset growth for the quarter was comparatively higher than the previous period which recorded reversals on both categories, it said.
In line with the strategy of expanding customer touch points to enhance accessibility and convenience, the branch network expanded its footprint by opening four new branches in Nelliyadi, Kaduruwela, Aluthgama and Wennappuwa. Two SME business centres were also opened in Kurunegala and Anuradhapura with the SME Toolkit being offered at these centres.
Commenting on the results and achievements, Saliya Rajakaruna, Director/CEO stated “We have recorded a noteworthy financial performance in the 1H with growth and earnings equally distributed across the business pillars. We anticipate bigger challenges in the 2H in the back drop of curtailed credit growth, but remain focused in achieving the goals set for the year. While it is business as usual for our front-end units, our support units are working relentlessly to create the processes, controls and the compliance platform required to uplift the Nations Trust brand to become a nationwide bank synonymous with sustainable growth.”
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