NTB continues resilient performance
View(s):Nations Trust Bank, despite the challenging business environment, continued its planned “K shaped” recovery strategy by increasing the loan portfolio by Rs. 20 billion recording an increase of 10 per cent during the quarter ending March 31, 2021.
Despite tough economic conditions due to the pandemic, the group recorded a pre-tax growth of 39 per cent for the quarter in comparison on the same quarter in the previous year. Post-tax recorded a growth of 88 per cent for the same period and comparison, the bank said in a media release.
Net Interest Income continued to decline primarily due to the reduction in the market interest rates while interest rate ceilings introduced by the regulator impacted some business portfolios. The improvement of CASA ratio to 35 per cent from 29 per cent as at end March 2020 helped partially offset the decline in interest margins during the period. “Gains on trading FX increased as a result of FX funding swaps with a higher depreciation of the rupee during the current period in contrast to the depreciation during the same period last year. The bank also benefited with trading profits on its’ fixed income securities portfolio with the fall in market rates,” it said.
Suspension or refund of certain charges by the bank, considering the current difficulties faced by customers due to the COVID-19 pandemic, negatively impacted the bank’s fee-based income.
Commenting on the results, Priyantha Talwatte, CEO/Director said: “While we are aware that we are still operating in a pandemic related subdued environment with strong headwinds specially with a probable outbreak of a third wave, the team will continue to adjust well and support the implementation of our revival strategy whilst assisting the Sri Lankan Government initiatives and supporting both customers and the economy for a speedy recovery”.