NDB holds Investor Forum for 1H 2018
NDB held an ‘Investor Forum’ recently to discuss the 1H financial results for the year 2018, at Galadari Hotel, Colombo.
The event was preceded by NDB Chairman Ananda Atukorala, Director/group CEO Dimantha Seneviratne, Group Chief Financial Officer Lalith Fernando, Vice President Corporate Banking Buwaneka Perera, Vice President Personal Banking and Branch Network Management Sanjaya Perera and NDB Capital Holdings Limited CEO Vajira Kulatilaka.
The Investor Forum marked the release of the financial statements for the first six months ended on June 30, 2018, to the Colombo Stock Exchange.
Furthermore, the forum also marks the bank’s endeavours in facilitating access to the top management in the discussions of the bank’s and group’s performance and future prospects for the stockbroking and investment fraternity.
The key performance highlights of the year were also shared at the forum. The bank recorded an operating profit before tax on financial services of Rs.4.81 billion, a 26 percent year-on-year (YOY) growth. The operating profits from the core banking activities, excluding the equity income, increased significantly by 53 percent YOY to Rs.4.25 billion, compared to Rs.2.79 billion in the comparative period.
This operating profit growth was supported by enhanced performance of all key business segments. The post-tax profit at bank level crossed the Rs.2 billion mark to reach Rs.2.77 billion. The profit attributable to shareholders improved remarkably, to Rs.2.42 billion, a 63 percent growth over the comparative period. Accordingly, the bank generated a return on equity of 17.15 percent for the six-month period of 2018.
Among the other key performance indicators, the net interest margin of the bank improved from 3 percent in 2017 to 3.43 percent by end-1h 2018, strengthening the net interest income. The cost-to-income ratio was well contained at 39.4 percent with the non-performing loan ratio managed at 2.54 percent, below the industry average.
Marking a new milestone in the bank’s growth journey, the total assets of the bank crossed Rs.400 billion to reach Rs.417 billion in 1H 2018. This is a 9 percent growth over the year end position of 2017. The asset growth was supported by the growth in the loans and receivables by 10 percent. Accordingly, the loans and receivables to customers crossed Rs.300 billion at the end of 1H 2018 to reach Rs.301 billion.
The customer deposits grew exceptionally well during the six months by 9 percent to Rs.297 billion. This translates to a quantum growth of Rs.24 billion. The CASA deposits within the overall deposits also increased by Rs.6.5 billion.
The forum was well-attended by a gathering of institutional investors, investment and research analysts, fund managers, stockbrokers and financial press as well as the senior management of the bank and NDB capital markets cluster companies. NDB conducts similar transparent and consistent investor relations throughout the year.
NDB was externally endorsed by a number of awards in 2018, affirming its excellence in a number of core banking areas such as retail banking, SME banking, project financing, microfinancing and financial inclusion and marketing and investor relations initiatives among others, the climax of which was being recognized as the Best Bank in Sri Lanka for 2018 by the prestigious, Usa-based Global Finance publication. The bank’s subsidiary, NDB Investment Bank Limited, was awarded as the Best Investment Bank in Sri Lanka for the seventh consecutive year by Euromoney.
NDB has made considerable strides towards the Sri Lankan banking and finance sector, expanding and evolving a range of products and services accessible through its growing branch network.