Sri Lanka's National Development Bank net down 29-pct
Aug 14, 2019 08:03 AM GMT+0530 | 0 Comment(s)
ECONOMYNEXT - Profits at Sri Lanka's National Development Bank group fell 29 percent to 781 million rupees in the June 2019 quarter from a year earlier, amid high loan losses and higher taxes, though the bank has grown its loan book.
NDB reported earnings of 4.54 rupees per share for the quarter. The group reported earnings of 6.19 rupees per share of the six months to June with total profits falling 32 percent to 1.32 billion rupees.
Interest income grew 25 percent to 13.2 billion rupees, interest expenses grew 30 percent to 9.1 billion rupees and the bank grew net interest income 15 percent to 4.0 billion rupees.
NDB group grew its loan book 5 percent to 361 billion rupees from December to June. The bond portfolio grew 15 percent to 27 billion rupees.
Loan losses grew 36 percent to 966 million rupees. Unspecified other provisions grew from 11 million rupees to 122 million rupees.
At bank level the gross non-performing loan ratio grew to 4.56 percent from 2.85 percent.
Sri Lanka is recovering from monetary instability in 2018 which saw the rupee collapse from 153 to 182 to the US dollar with the central bank printing money to keep rates down artificially just as the economy and the credit system recovered in the first quarter. There have been calls to restrain the domestic operations department of the central bank and criminalize certain actions of the unit.
Deposits grew 2 percent to 354 billion rupees.
VAT on financial services grew from 299 million rupees to 423 million rupees and there was a 222 million charge from a new debt repayment levy.
Gross assets grew 4 percent to 495 billion rupees. Net assets grew 2 percent to 39.9 billion rupees. At bank level Tier 1 capital fell from 9.17 percent to 9.02 percent. Total capital adequacy increased to 13.64 percent from 12.63 percent. (Colombo/Aug14/2019)