NDB Q1’17 post-tax profit surge by 45% to Rs. 1.15 bln

The National Development Bank PLC (NDB) has reported a Profit after Tax (PAT) of Rs. 1.159 billion for the three months ended 31 March 2017, up sharply by 45 per cent over the corresponding period of Q1 in 2016.

During the quarter, the total assets of the bank grew to Rs. 347 billion (4 per cent from December 2016). Loans and receivables to customers recorded a notable growth of Rs. 14 billion (6 per cent) to reach Rs. 241 billion. Customer deposits also achieved an impressive growth of Rs. 24 billion (12 per cent up)), thereby bringing the total customer deposits to Rs. 228 billion.

In a media release, announcing the results, NDB CEO Dimantha Seneviratne stated that such results at the outset of the year are encouraging, and reflects the potential of the bank to record enhanced performance throughout the year. He attributed the impressive results to the strong teamwork and the firm focus on generating enhanced value from all fronts to all its stakeholders. He also mentioned that the bank’s fresh strategy will place the group on the precise trajectory in becoming a major player within the industry, whilst committing and contributing to the success of its stakeholders and the nation at large.

Improved core banking operations contributed towards the growth in profitability of the bank. Net interest income (NII) grew by 18 per cent in Q1 2017 to Rs. 2,334 million supported by the strong growth in several key asset products.

“Net fee and commission income of Rs.554 million for Q1 2017 grew moderately by 3 per cent. The bank continuously strategizes on improving non-fund based income, thereby maintaining an appropriate revenue mix to overcome any unforeseen challenges. Net gains from trading of Rs. 273 million, which comprises of income from foreign exchange, grew by 46 per cent compared to the corresponding period, benefiting from the movement in the exchange rates,” the release said.