Sri Lanka's NDB Group has revealed it had reached a "landmark" Rs. 1 billion in group profit attributable to shareholders for the first half (H1), the period to end-June, of its 2011 financial year, a year-on-year increase of 37% over the corresponding period last year. This was identified as resulting from "strong core banking profits and improved performance of the group companies."
The NDB Group is said to have concerns in commercial banking, with 53 branches island-wide, as well as capital markets and insurance. Meanwhile, the group also indicated that its banking arm's "Net Income increased by 5% over the corresponding period last year. This improvement was supported by the significant growth in loans and advances and deposits by 44% and 41% respectively over te last twelve months. NDB Bank’s core banking profits (Operating Profit After Provision for Fall in Value of Dealing and Investment Securities less Equity Income) increased by 9.7% over the corresponding period last year."
Additionally, it also emerged that the bank's second quarter perfomance (April to June) was "significantly higher than the performance for the first quarter. NDB Bank’s Profit Before Tax for the second quarter was Rs. 971 million, a growth of 37% over the first quarter of 2011. This has been backed by strong Net Income growth of 16% over the same period. The Profit After Tax of the Bank for the second quarter was 31% higher than the Profit After Tax for the first quarter of 2011. Profit After Tax of the Bank increased even more significantly by 45% over the 12 month period, partly due to the reduced tax rates applicable from 2011.
The loans and advances and deposits portfolio grew by 23% (Rs. 16 billion) and by 14% (Rs. 8.6 billion) respectively over 31 December 2010. This impressive growth in the Bank’s lending portfolio and the deposit liabilities are well in line with industry growth rates. The Bank’s total assets as at 30 June 2011 increased by 28% over 30 June 2010 from Rs. 94.9 billion to Rs. 121.2 billion."
Also noted, despite significant growth in its loan portfolio, NDB Bank has kept its Non Perfoming Loanns (NPL) ratio to 1.58%, which it attributed to "strong credit analysis techniques and with the use of proactive risk management practices." Further, the bank also indicated it SME portfolio had "grown by 66% over the past 12 months." (JH)