National Development Bank PLC [NDB] recorded impressive results for the six months ended June 30, 2018, continuing the strong growth it recorded last year.
The Bank recorded an operating profit before tax on financial services of Rs 4.81 billion, a 26% year-on-year [YoY] growth. Operating profits from core banking activities excluding equity income increased significantly by 53% YoY to Rs 4.25 billion, compared to Rs 2.79 billion in the comparative period.
An impressive 43% YoY growth was recorded in Net Interest Income (NII) to Rs 6.8 billion. Within NII, interest income grew by 15%, benefiting from enhanced loan volumes generated during the period under review, and effective pricing of the loan book.
Interest expenses grew only by 5%, directly benefiting from the improved funding mix of the Bank, with greater reliance on customer deposits. This is reflected in the Bank’s loans to deposits ratio of 103% in 1H 2018 compared to 108% in 1H 2017.
Accordingly, the overall net interest margin [NIM], based on the total assets of the Bank improved from 3% in 2017 to 3.43% by end 1H, 2018. Net fee and commission income grew by 27% to Rs 1.45 billion.
Total operating income grew by an impressive 30% to RS 10.1 billion, whilst the same at the Group level increased by 38% to Rs 10.3 billion.
Marking a new milestone in the Bank’s growth journey, total assets of the Bank crossed Rs 400 billion to reach Rs 417 billion in 1H 2018. This is a 9% growth over the year end position of 2017.
The assets growth was supported by the growth in the loans and receivables by 10%. Accordingly, loans and receivable to customers crossed Rs 300 billion at the end of 1H 2018to reach Rs 301 billion.
NDB Group Chief Executive Officer, Dimantha Seneviratne said continuous improvement in financial performance recorded by the Bank demonstrates the intrinsic capabilities of NDB, which are now being unleashed through a meticulous strategy execution.
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