Tuesday, May 14, 2019

NDB posts Rs 1.4 bn PAT for 1Q

National Development Bank PLC recorded a pre-tax profit of RS 3 billion for 1Q 2019 ended March 31, 2019, a growth of 9% over 1Q 2018.

The Bank’s profit after tax of Rs 1.4 billion was however, a 12% decline over LKR 1.6 billion reported for the comparative period, due to higher taxes including the new Debt Repayment Levy and the impact from exchange losses incurred on the revaluation of the foreign currency reserves of the Bank.

The reported results are largely reflective of the subdued macroeconomic and industry conditions experienced during the first quarter of the year.

Commenting on the quarter’s performance, the Group Chief Executive Officer of NDB Bank - Dimantha Seneviratne said, the Bank saw a moderation in growth having accounted for the prevailing economic conditions and the industrywide trends in escalating NPLs.

Hence the Bank’s growth has been calibrated to match such conditions, and taken a cautious approach with sound risk management and credit underwriting practices, to ensure healthy and sustainable growth.

He also mentioned that NDB will focus on considerable internal integration during the year, wherein investments are planned in the core banking system as well as digital banking capabilities.

The Bank is also evaluating internal processes to introduce business process re-engineering [BPR] solutions to achieve leaner, speedier and more cost effective processes, with the ultimate intentions of achieving cost efficiencies and an enhanced customer experience. The Bank will also focus on further strengthening the capital base via the infusion of both equity and debt capital, the effects of all of which will place NDB on a robust launch pad to achieve accelerated growth in 2020 and beyond, he further commented.

Gross income recorded an 18% growth to Rs 14.1 billion from Rs 11.9 Bn in the corresponding quarter. Total operating income was Rs 6.0 billion, and was strengthened by the robust growth in net interest income [NII] as well as net fee and commission income. NII was Rs 4.7 billion for the quarter under review, an increase of 39% year-on-year [YoY]. Within NII, interest income grew by 29%, and interest expense increased by 24%. The Bank’s Net Interest Margin [NIM] was 3.41%, compared to3.49% in Q1 2018.

 

Author:

Related Posts:

0 comments: