NTB profits up, growth momentum continues

Nations Trust Bank (NTB), said last week it’s maintaining an “excellent” growth momentum with a pre-tax group operating profits at Rs. 466.6 million for the nine months which ended September 30, 2006.

This was a 70% increase compared to the combined results of NTB and Mercantile Leasing Limited (MLL), for the same period last year. “These exceptional results were seen on the back of an all round improvement with strong growth in deposits and advances, a pleasing increase in fees and commissions, while maintaining good control of non-performing loans, provisions and operating costs,” the bank said. The group’s post tax profits were Rs.231.1 million.

Compared with the combined results of NTB and MLL for the same period-

• Income improved to Rs.1.9 billion from Rs.1.4 billion.

• Operating costs increased to Rs. 1. 3 billion, an increase of 34%, mainly due to a larger branch network, a bigger workforce and much higher volumes. Provisions decreased by 11% reflecting a much tighter control on non-performing advances and improved collection.

• Customer deposits grew to Rs.21.2 billion an increase of 47% in the nine months, while customer assets grew to Rs. 24.4 billion, showing an increase of 21%.

The aggressive sales drive has contributed significantly to this growth.

• Total assets grew to Rs. 37.7 billion from Rs. 29.9 an increase of 26%, with Earnings per Share improving from 1.33 to 1.84 for the nine months.