would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc.. 
Home
The NDB Bank has posted a Profit Attributable to shareholders for the nine months ended 30 September 2011 was Rs. 1.7 b as compared with Rs. 1.5 b for the comparative period (a 13% increase).
The bank said this was due to a strong growth in core banking profits of 14% and improved performance of the group companies.
“This is a commendable performance despite the marked to market equity losses of the Group amounting to Rs. 100 m during the current period, compared to the gain of Rs. 532 m made in the comparative period of 2010,” NDB said.
NDB Bank’s core banking profit (net interest and fee income less provisions and overheads) increased by 15% over the corresponding period last year. On a YOY basis, core banking profit growth for the first half of the year was a 7% increase, which clearly signifies the accelerated growth of core banking profits particularly during the third quarter of 2011.
Despite the pressure on interest margins, and the re-pricing effect on investments in the Government Securities portfolio (as a result of the decline in the market), the bank’s net interest income grew by 9% as compared with the corresponding period last year , largely contributed by the significant increase in loans and advances and deposits by 44% and 40% respectively. NDB Bank’s profit after tax increased by 32%.
NDB Bank’s PBT increased by 1% over the corresponding period last year. This was mainly due to NDB Bank incurring a loss of Rs. 46 m as compared with an income of Rs. 301 m on its quoted equity portfolio for the corresponding period last year.
NDB Bank’s equity securities portfolio which is accounted on a marked to market basis was downsized in 2011. The significant drop in income from the quoted equity portfolio was due to the Milanka Price Index (MPI) declining from 7,061 as at 1 January 2011 to 6,045 as at 30 September 2011, in contrast to the MPI increasing by 3,703 points during the corresponding period in 2010.
NDB Group’s profit before tax for the third quarter was Rs. 1.1 b, a growth of 14% over the second quarter of 2011. This has been backed by strong net income (net interest income and other income) growth of 14% over the same period. Profit after tax and profit attributable to shareholders of the NDB Group for the third quarter of 2011 also increased significantly by 28% and 29% respectively over the second quarter of 2011.
NDB Bank’s loans and advances and deposits portfolio grew by 31% (Rs. 22 b) and by 23% (Rs. 13 b) respectively over 31 December 2010. This impressive growth in the bank’s lending portfolio and the deposit liabilities are ahead of the industry growth rates. The bank’s total assets as at 30 September 2011 increased by 29% over 30 September 2010 from Rs. 99.8 b to Rs. 128.6 b.
Despite the significant growth in the loan portfolio in all the sectors, NDB Bank has been able to contain its non-performing loans ratio to an all time low of 1.41% which is one of the lowest in the industry, due to its prudent underwriting policies and well-defined risk acceptance criteria.
The bank has been able to achieve this low level of delinquencies by the use of strong credit analysis techniques and with the use of proactive risk management practices. The provision cover on NPLs was at 77.08% as at 30 September 2011 with an open loan position of 2.07%, which signify minimum amount of stress on the bank’s equity, on account of unprovided delinquencies.
The Group’s Tier 1 Capital Adequacy Ratio of 13.68% and a Tier 1 and 2 ratio of 15.42% are well in excess of the regulatory minimum of 5% and 10% respectively, providing ample capacity for the rapid expansion planned for the future.
Since the merger with its subsidiary in 2005, NDB Bank has transformed itself to a typical commercial bank that offers the entire range of banking products ranging from working capital, trade finance and cash management services to its corporate and SME customers in addition to specialised project finance it originally offered.
NDB Bank today is also well equipped to service both the corporate and retail sectors, and with a healthy and well structured balance sheet, and an affirmed rating of “AA (lka)” by Fitch Ratings, NDB provides its stakeholders, the much desired comfort for their investment and future growth potential.
SME lending is an important element of the bank’s operations as it believes in the vast potential the sector has in post conflict Sri Lanka. Not only restricted to providing finance, but also by educating and enhancing skills and building competencies of SMEs, NDB Bank’s aim is to condition them to maximise opportunities that are made available.
With this in view, NDB Bank aggressively expanded its SME portfolio, not only through asset financing but also financing suppliers’ working capital requirements of SME’s with additional focus in the north and east regions – specifically Jaffna and Trincomalee.
The bank also sourced a long term loan facility amounting to US$ 21,000,000 (Rs. 2.3 b) from DEG – Germany, to support NDB Bank’s long-term commitment to finance the SME sector in Sri Lanka.
http://www.ft.lk/2011/11/16/ndb-bank%E2%80%99s-net-profit-up-13-to-rs-1-7-b-by-september/
The bank said this was due to a strong growth in core banking profits of 14% and improved performance of the group companies.
“This is a commendable performance despite the marked to market equity losses of the Group amounting to Rs. 100 m during the current period, compared to the gain of Rs. 532 m made in the comparative period of 2010,” NDB said.
NDB Bank’s core banking profit (net interest and fee income less provisions and overheads) increased by 15% over the corresponding period last year. On a YOY basis, core banking profit growth for the first half of the year was a 7% increase, which clearly signifies the accelerated growth of core banking profits particularly during the third quarter of 2011.
Despite the pressure on interest margins, and the re-pricing effect on investments in the Government Securities portfolio (as a result of the decline in the market), the bank’s net interest income grew by 9% as compared with the corresponding period last year , largely contributed by the significant increase in loans and advances and deposits by 44% and 40% respectively. NDB Bank’s profit after tax increased by 32%.
NDB Bank’s PBT increased by 1% over the corresponding period last year. This was mainly due to NDB Bank incurring a loss of Rs. 46 m as compared with an income of Rs. 301 m on its quoted equity portfolio for the corresponding period last year.
NDB Bank’s equity securities portfolio which is accounted on a marked to market basis was downsized in 2011. The significant drop in income from the quoted equity portfolio was due to the Milanka Price Index (MPI) declining from 7,061 as at 1 January 2011 to 6,045 as at 30 September 2011, in contrast to the MPI increasing by 3,703 points during the corresponding period in 2010.
NDB Group’s profit before tax for the third quarter was Rs. 1.1 b, a growth of 14% over the second quarter of 2011. This has been backed by strong net income (net interest income and other income) growth of 14% over the same period. Profit after tax and profit attributable to shareholders of the NDB Group for the third quarter of 2011 also increased significantly by 28% and 29% respectively over the second quarter of 2011.
NDB Bank’s loans and advances and deposits portfolio grew by 31% (Rs. 22 b) and by 23% (Rs. 13 b) respectively over 31 December 2010. This impressive growth in the bank’s lending portfolio and the deposit liabilities are ahead of the industry growth rates. The bank’s total assets as at 30 September 2011 increased by 29% over 30 September 2010 from Rs. 99.8 b to Rs. 128.6 b.
Despite the significant growth in the loan portfolio in all the sectors, NDB Bank has been able to contain its non-performing loans ratio to an all time low of 1.41% which is one of the lowest in the industry, due to its prudent underwriting policies and well-defined risk acceptance criteria.
The bank has been able to achieve this low level of delinquencies by the use of strong credit analysis techniques and with the use of proactive risk management practices. The provision cover on NPLs was at 77.08% as at 30 September 2011 with an open loan position of 2.07%, which signify minimum amount of stress on the bank’s equity, on account of unprovided delinquencies.
The Group’s Tier 1 Capital Adequacy Ratio of 13.68% and a Tier 1 and 2 ratio of 15.42% are well in excess of the regulatory minimum of 5% and 10% respectively, providing ample capacity for the rapid expansion planned for the future.
Since the merger with its subsidiary in 2005, NDB Bank has transformed itself to a typical commercial bank that offers the entire range of banking products ranging from working capital, trade finance and cash management services to its corporate and SME customers in addition to specialised project finance it originally offered.
NDB Bank today is also well equipped to service both the corporate and retail sectors, and with a healthy and well structured balance sheet, and an affirmed rating of “AA (lka)” by Fitch Ratings, NDB provides its stakeholders, the much desired comfort for their investment and future growth potential.
SME lending is an important element of the bank’s operations as it believes in the vast potential the sector has in post conflict Sri Lanka. Not only restricted to providing finance, but also by educating and enhancing skills and building competencies of SMEs, NDB Bank’s aim is to condition them to maximise opportunities that are made available.
With this in view, NDB Bank aggressively expanded its SME portfolio, not only through asset financing but also financing suppliers’ working capital requirements of SME’s with additional focus in the north and east regions – specifically Jaffna and Trincomalee.
The bank also sourced a long term loan facility amounting to US$ 21,000,000 (Rs. 2.3 b) from DEG – Germany, to support NDB Bank’s long-term commitment to finance the SME sector in Sri Lanka.
http://www.ft.lk/2011/11/16/ndb-bank%E2%80%99s-net-profit-up-13-to-rs-1-7-b-by-september/
