NDB aggressive on growing organically
National Development Bank PLC (NDB) says it’ll be aggressively expanding in Sri Lanka and this organic growth will capitalise bigger opportunities for them. ”We’ll be opening some 18 branches this year and will be concentrating on our core banking business,” Rajendra Theagarajah, CEO NDB told the Business Times. The NDB Group companies commenced 2016 on a positive note, posting a 20 per cent year-on-year (YoY) growth in gross income and ended the first quarter with a gross income of Rs. 7,555 million, an Rs. 1,235 million increase over the comparative period of first three months of 2015. Mr. Theagarajah said that NDB is confident with top Development Financial Institutions (DFIs) backing them.
“We already have the IFC, DGM FMO, etc with us and we are happy to grow within Sri Lanka,” he said. The net interest income (NII) of the NDB Group was Rs. 2,064 million as compared to Rs. 1,984 million, a 4 per cent increase over the comparative period. Group net fee and commission income recorded a 13 per cent growth to reach Rs.765 million for the period. Net gains from financial investments also grew by 41 per cent YoY. Accordingly, NDB Group’s total operating income grew by 7 per cent to reach Rs. 3,346 million, as compared to Rs.3,142 million for the comparative period, a NDB media release said. ”Impairment charges for loans and other losses for the period was a charge of Rs. 546 million as compared to release of Rs. 64 million in Q1 2015.
Individual impairment charges of Rs. 350 million represent specific provisions made for few customers, based on sound judgment and objective evidence. However, a stringent recovery process is being pursued to minimise any significant losses that may arise from such facilities.”
It said that total operating expenses increased by 10 per cent YoY across the Group to Rs. 1,723 million. The bank opened six new branches during the first three months of 2016, which increased the premises and establishment costs. Given this expansion in the bank’s network, the bank has managed its costs well during the said quarter. The group profit attributable to shareholders (PAS) declined by 37 per cent YoY, and ended at Rs. 548 million.