NDB 2023 year sees resilient and agile strategy

National Development Bank PLC (NDB) has demonstrated its characteristic resilience and agility in withstanding external challenges through the financial year 2023. The NDB Group posted a pre-tax profit of Rs.10.9 billion whilst at bank level pre-tax profit was Rs.10.1 billion. Profitability mirrored solid core banking performance which led to healthy improvement across key income categories.

A bank statement said gross income saw a 20 per cent increase over the financial year 2022 to Rs.132.3 billion. Interest income enhanced by 22 per cent to Rs.119.4 billion. Market wide interest rates came down from their historic highs following policy rates cuts netting 650 bps by the Central Bank, whilst the average prime lending rate dipped by approximately 16 percentage points during the year. Total of net gains from trading, net gains from financial assets at fair value through profit or loss and net gains from derecognition of financial assets amounted to Rs.8.7 billion, a notable improvement over 2022 due to variation in the exchange rate and interest rates compared to the prior year.

In its outlook, the bank said it anticipated that macro-economic challenges may subside in the near term and with all key indicators adjusting in to positive territories, recovery will be expedited. “The banking sector looks forward to the finalisation of the international sovereign bonds restructuring, which would allow banks efficient deployment of capital in pursuing growth targets. NDB remains positive of such recovery trajectory, and will focus on creating shareholder value through consistent and sustainable bottom line performance.”