National Savings Bank (NSB) ended a momentous year of 2017 posting a profit before tax of Rs. 14 billion which to date is the highest ever in its history.
Profit after tax kept abreast at Rs. 9.6 billion. The significant growth in business volumes with an interest income of Rs.103 billion along with a gain of Rs. 1.1 billion from trading in government securities has contributed to this performance.
Aggressive implementation of marketing plans, investments on strengthening the brand, and prudent management of risk facilitated this performance. Demonstrating sound management of its credit portfolio, the gross Non-Performing Loans (NPL) ratio decreased to 1.3%, the lowest in the banking sector.
The Bank’s BASEL III total Capital Adequacy Ratio stood at 13.9%, as at December 31 and is expected to increase further once revaluation gains are considered. Alongside these achievements, the Bank prudently managed its expenses arriving at an impressive Cost-to-Income ratio of 38%. Adding to the trailblazing performance, NSB also made history by becoming the first specialized bank to amass an asset base of Rs. 1 trillion.
“These achievements, as we celebrate our 46th anniversary, testify the robustness of the pragmatic strategic direction being pursued and augurs well for the future”, stated Chairman, Aswin De Silva. “The technical expertise and commitment of our team across all areas is one of our key assets. As a specialized bank, we have a clear mandate; and I’m pleased that we hold true to it, whilst recording organic growth in all core business areas”, he added. General Manager,CEO, Dammika Perera said, “as we focus on 2018 and beyond, we will augment our efforts to deliver more value to our customers through innovative products such as NSB iSaver, which has caught on well with the tech-savvy generation.”
Firmly rooted in the national economy, NSB makes a significant contribution to the development of the nation. The Bank contributed Rs. 13.4 billion, in the form of taxes, levies and dividends to the Treasury. NSB’s growing share in the remittances business bears testimony to the confidence placed in it by Sri Lankan expatriates.
The Bank’s loans and advances portfolio in both retail and corporate sectors recorded an impressive 20% growth, to reach Rs. 388 billion. The Bank has contributed to the country’s infrastructure development by way of Rs.118 billion for state owned enterprises. The Bank’s deposit base too witnessed a growth of 12%, to reach Rs. 737 billion.
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