National Development Bank has recorded a profit after tax (PAT) of Rs 1,159 million for the three months ended March 31,2017, an impressive growth of 45% over the corresponding period of Q1 in 2016.
During the quarter, the total assets of the Bank grew up to Rs 347 billion (4% from December 2016). Loans and receivables to customers recorded a notable growth of Rs 14 billion (6%) to reach Rs 241 billion.
Customer deposits also achieved an impressive growth of Rs 24 billion (12%), thereby bringing the total customer deposits to Rs 228 billion.
NDB Chief Executive Officer Dimantha Seneviratne said the results are encouraging and reflects the potential of the Bank to record enhanced performance throughout the year. He attributed the impressive results to the strong teamwork and the firm focus on generating enhanced value from all fronts to all its stakeholders.
He said the Bank’s fresh strategy will place the group on the precise trajectory in becoming a major player within the industry, whilst committing and contributing to the success of its stakeholders and the nation at large.
Improved core banking operations contributed towards the growth in profitability of the Bank. Net interest income (NII) grew by 18% in Q1 2017 up to Rs 2,334 million compared to Rs 1,979 million for Q1 2016, supported by the strong growth in several key asset products coupled with the enhanced net interest margin (NIM) of 2.78% compared to the NIM of 2.64% in 2016.
Net fee and commission income of Rs 554 million for Q1 2017 grew moderately by 3%. The Bank continuously strategizes on improving non-fund based income, thereby maintaining an appropriate revenue mix to overcome any unforeseen challenges. Net gains from trading of LKR 273 million, which comprises of income from foreign exchange, grew by 46% compared to the corresponding period, benefiting from the movement in the exchange rates.
Customer deposits grew by a notable 12% or by Rs 24 billion during Q1 2017 to Rs 228 billion by end Q1 2017. Within deposits, term deposits recorded a relatively higher growth, reflecting the general preference of depositors to place their money in high interest yielding products. The Bank is meticulous in adjusting its deposit mix to increase the CASA contribution within the total mix. CASA grew up to LKR 49.6 billion from LKR 46.3 billion over the three months period.
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