NTB says profits up by 30 per cent in 1stQ
View(s):Nations Trust Bank has closed the first quarter ending March 2018 with a post-tax profit of Rs. 939 million, up by 30 per cent over the corresponding period in the previous year with pre-tax profits increasing at a higher rate of 36 per cent.
Post tax profit growth for the group was lower owing to additional tax provided for the inter-company dividend payments which also resulted in the bank posting a much higher operating income, according to an NTB media release.
“Profitability growth was underpinned by a 7 per cent growth in loans and advances during the period under review along with improving net interest margins,” it said.
Net interest income increased by 43 per cent as Net Interest Margins (NIM) climbed up steadily due to a drop in cost of funds over the corresponding period coupled with improved portfolio yields.
Non fund based income including fees, commission and operating income increased by 16 per cent for the period under review with trade and transactional fees contributing to a larger portion of the increase. Net trading losses for the year amounted to Rs. 203 million which is reflective of the swap cost arising from an increased funding forex SWAP book (up by 30 per cent) coupled with an increase in forward premiums (up by 50bps) as compared with the comparative period.
Commenting on the results and achievements, Renuka Fernando, CEO/Executive Director, Nations Trust Bank stated, “I am extremely pleased with the performance of the first quarter, well balanced across the business pillars with the strategies embarked upon moving in the right direction. It is also quite an exciting time for the bank as we put in place many digital initiatives to bring about transformational change across the enterprise for the long term”.