NTB posts yet another record year
NTB closed the year with a post-tax profit of Rs 1.5Bn, a growth of 41% over 2010 with the current year achievement driven by a noticeable growth in business volume, modest growth in top line revenue despite falling NII margins, controlled growth in operating expenses, provision reversals and lower taxation.
In a statement, the bank said across the industry NII margins contracted with intensifying competition. Whilst lending rates were driven down by lower market interest rates and revival of loan growth, funding costs trended upwards as competition increased and liquidity diminished alongside credit growth.
The statement said Nonfund based (NFB) income on cards and trade recorded good growth against the previous period. Improvements in macro economic factors relating to import/export volumes, tourism and consumer spend bolstered these growth levels.
Credit card related nonfund based income grew by 29%. With the re-configuration of the cards business model coming into force, greater attention was paid to increase business drivers on spend and card acquisitions. Foreign exchange income for the year recorded a moderate growth of 9% with increased customer values contributing significantly to the overall number.
The statement said the balance sheet recorded a growth of 23% and crossed the Rs 100 billion mark for the first time, a landmark by any standards for a bank in its 12th year of operations.
The bank managed to grow its loan book by 39% to Rs 62 billion, again out performing industry growth. The growth in credit was driven primarily by retail and SME, leasing and consumer finance.
Commenting on the performance Ceo/director Saliya Rajakaruna stated "Our bank had its best year ever in 2011, not only were we able to report a significant uplift in earnings but also a stable balance sheet recording a balanced growth in