ECONOMYNEXT – Net Profits at Sri Lanka’s NDB Bank grew 55 percent to 1.7 billion rupees in the June 2021 quarter from a year earlier, helped by doubledigit growth in net interest income and fees interim accounts showed.
NDB Bank reported earnings of 7.08 rupees per share for the quarter. In the six months to June the bank reported earnings of 16.03 rupees on total profits of 4.1 billion rupees which grew 73 percent.
Net interest income grew 15.5 percent to 5.2 billion rupees in the quarter, with interest income down 5.3 percent to 12.8 billion rupees, interest expenses falling at a faster 15.8 percent to 7.6 billion rupees.
“Reflecting the reduced interest rate environment, both interest income and interest expenses declined year-on-year,” the bank said in its interim accounts.
The review period was marked by month long travel restrictions imposed to curb the spread of the third wave of the pandemicin Sri Lanka, which affected business momentum.
Loans grew 10 percent to 487 billion rupees from December to June.
NDB Bank provided 1.9 billion rupees for bad loans, up from 1.8 billion rupees a year ago.
Non-performing loans were 5.63 percent by June, up from 5.35 percent from a year ago. (lesser number of words)
Fee income grew to 1.6 billion rupees from 914 million.
Total assets were up 6 percent to 668 billion rupees.
Net assets were up 27 percent to 61 billion rupees.
Tier I capital was at 10.43 percent, up from 9.17 percent at bank level (10.83 at group) higher than the 8.0 percent required. Total capital adequacy was at 14.73 percent, up from 14.32 percent (group 15.03up from 14.75 percent) (Colombo/Aug29/2021).