NDB records solid growth for June quarter
Some solid growth in new loans and better margins lifted the profits of National Development Bank PLC (NDB) but the hefty provisioning against the possible bad loans and the resulting asset quality weakening stood out by June 30, 2018.
Releasing its interim accounts just before the start of trading yesterday, NDB said it reported earnings of Rs.7.15 a share or Rs.1.27 billion for the April-june quarter (2Q18), up 70 percent from the same period last year.
The net interest income was up 41 percent year-on-year (YOY) to Rs.3.51 billion, supported by better margins. The bank managed to stretch its net interest margin to 3.43 percent, from 3.00 percent in December 2017.
The fees and other incomes rose by 17 percent YOY to Rs.947 million, which was also assisted by the bank’s capital market and investment banking business.
However, the profits of this business segment declined by 5.5 percent YOY to Rs. 146.6 million for the six months ended on June 30, 2018, due to weak capital market and investment banking activities during the period.
NDB’S capital market cluster runs the country’s largest investment bank.
Meanwhile, for the sixmonth period, the bank reported earnings of Rs.13.64 a share or Rs.2.42 billion, up 63 percent from the same period, last year.