Generating a record-breaking profit for three quarters in a straight NSB records sensational performance beating all the odds during a pandemic. Its highest ever profit for a period of nine months with a Profit Before Tax (PBT)of Rs. 20.3 billion and a Profit After Tax (PAT) of Rs.15.6 billion, National Savings Bank (NSB) shows its COVID resistance, strength and continuous financial resilience.
Against the backdrop of COVID-19 impact on the economic activities, the PBT for the first nine months of 2021 was Rs. 20.3billion, which marks an increase of 170.6% from Rs. 7.5billion recorded in the same period last year, while the PAT was Rs. 15.6 billion, with an increase of 258.6%from Rs. 4.4 billion in 2020.
Gross Income of the Bank grew by 5.8% to Rs. 99.2 billion during the nine months of the year from Rs. 93.7Bn recorded in the corresponding period, last year. During the period under review, the interest income has increased by 6.8% to reach Rs. 96.9 billion, while the interest expense has decreased by 15.7% to Rs. 56.7 billion due to the prevailing lower interest rate regime which leads to lower interest expenses for the deposits as well as borrowings despite the substantial growth in the deposit base during the nine months.
The increase in interest income together with the considerable reduction in interest expenses supported Net Interest Income (NII)to surge by 71.6% to Rs.40.1 billion against Rs.23.4 billion stood during the same period last year.
Net Fee and commission income grew by 46.1% to Rs.2 billion from Rs.1.4 billion mainly driven by the increase in fee and commission income due to conversion/renewal of the existing loans to reduced interest rates as well as increased foreign remittances and coupled with fees generated through digital platforms to where the customers shifted under social distancing and health guidelines.
The increase both in NII and Non-Interest Income led the total Operating Income to record a rise of 60.6% to Rs. 42.3 billion as at the end of 30th September 2021. Operating expenses during the period of nine months of 2021, rose by21.9% to Rs.14.6 billion compared to the corresponding period of the previous year, which is mainly attributable to the increased personnel expenses owing to the provisions made for the Collective Agreement due in 2021.
Impairment charges during the period under review decreased to Rs. 2.8 Bn by 38.3% compared to the same period in the last year. However, the gross NPL ratio increased to 3.51% mainly owing to the reclassification of some loans and advances under debt and other instruments.
The Bank generated a Return on Equity (RoE) of 34.86% and Return on Assets (RoA) of 1.86% at the end of September 2021.
The total asset base of the Bank grew at 13.6% to reach Rs. 1.55 trillion against the Rs.1.36 Tn reported as at the end of December 2020 mainly contributed by the growth in customers’ deposits, which increased by 12.7% to Rs. 1.39 Tn compared to the deposit base reported at the end of December 2020. During the nine months ending 30th September 2021, the Bank has mobilized Rs.158.2 Bn and continued the momentum of mobilizing low-cost funds during the period under review by mobilizing Rs.44.2 Bn.
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