NDB 1H2020 results, navigating through crises with stability and resilience
National Development Bank PLC, facing many crises like many in the local business community due to COVID-19 and the after-effects of the 2019 Easter Sunday attacks, has shown sound results for the first six months ending June 30, 2020, with post-tax profit of the bank at Rs. 3 billion and profit attributable to shareholders at the group level at Rs. 2.4 billion, a YoY increase of 34 per cent and 32 per cent respectively.
In a media release, Dimantha Seneviratne,
Director/ Group
Chief Executive
Officer, commenting on the bank’s performance stated that NDB’s strategic focus, experience and competence in weathering economic cycles, its talented pool of human capital with a customer-centric approach and efficient processes have enabled the bank to perform well amidst challenging conditions.
“The period under review was marked by the heightened impact of the pandemic with a complete lockdown for over two months in which economic activity was at near zero. During the lockdown, NDB carried out banking services to the maximum extent possible, via multiple modes of digital channels, branches functioning at selected localities and three mobile ATMs for the benefit of its customers,” the release said.
NDB granted moratoriums spanning up to six months introduced by the Central Bank to 40 per cent of its loan book, amounting to over Rs. 170 billion, including personal and business customers.
In addition to the financial support, the bank also provided advisory support to the affected businesses and carried out close monitoring to ensure that they are ready to operate with stability once the moratoriums and concessions unwind.
With the reduction of policy rates and less demand for credit, the bank’s net interest margin came down to 3.25 per cent from 3.53 per cent end 2019.
Total operating expenses for H1 2020 was Rs. 4.7 billion, a slight YoY reduction from H1 2019. The bank implemented a large number of cost management initiatives in response to the pandemic, and coupled with the bank’s technology driven process efficiencies already in place contributed towards achieving this reduction in expenses.
NDB granted moratoriums spanning up to six months introduced by the Central Bank to 40 per cent of its loan book, amounting to over Rs. 170 billion, including personal and business customers.