Sri Lanka's NDB Bank net up 64-pct in Dec 2017
Feb 02, 2018 09:13 AM GMT+0530 | 0 Comment(s)
ECONOMYNEXT - Profits at Sri Lanka's NDB Bank group December 2017 quarter profits rose 64 percent to 1.19 billion rupees, as net interest income rose expanded with loans growing 20 percent during the year, interim accounts showed.
The group reported earnings of 7.10 rupees per share in the quarter. In the year to December it reported earnings of 22.04 rupees on total profits of 3.7 billion rupees which were up 38 percent.
Interest income was up 21 percent to 9.9 billion rupees, interest expense was up a slower 15 percent to 6.7 billion rupees and net interest expense was up 36 percent to 3.1 billion rupees.
Fee income was up 28 percent to 1.028 billion rupees.
The group's loans grew 20 percent to 274 billion rupees, while deposits grew at a faster 34 percent to 273 billion rupees.
Sri Lanka is now recovering a balance of payments crisis, fired by the central bank buying securities from the Treasury or banks with printed money to artificially expand bank reserves so that their credit exceeds deposits.
Once a balance of payments crisis ends, loan to deposit ratios improve.
Loan loss provisions rose 22 percent to 459 billion rupees, with 223 million rupees set aside as a general provision.
Gross assets rose 14 percent to 388 billion rupees. Group net assets rose 12 percent to 34 billion rupees.
At bank level, net assets rose 17 percent to 28.8 billion rupees.
At bank level Tier 1 capital was 8.85 percent (required 7.25-pct), down from 9.31 percent a year earlier and total adequacy was 12.89 percent (required 11.25-pct) up from 12.95 percent. (Colombo/Feb02/2018)