Sri Lanka’s NTB December net up 21-pct, bond losses curb annual profit

ECONOMYNEXT – Sri Lanka’s Nations Trust Bank said December 2015 quarter net profit rose 21 percent to 675 million rupees from a year ago mainly owing to lower impairment charges while losses on its bonds portfolio curbed group annual profit growth.

Net interest income was stagnant at 2.3 billion rupees for the quarter with interest expenses growing three percent to two billion rupees while interest income rose just one percent to 4.37 billion rupees.

Earnings per share were 2.93 rupees for the quarter, according to interim accounts filed with the stock exchange.

EPS for the year ending 31 December 2015 rose three percent to 11.34 rupees with net profit at 2.6 billion rupees.

Annual interest income fell five percent to 166 billion rupees and interest expenses fell 12 percent to 7.5 billion rupees.

Net interest income went up only two percent to 9.1 billion rupees owing to declining yields in several business lines amid rising cost of funds and intensified competitive pressures, a statement said.

“Profit for the year was unfavourabley impacted due to marked to market losses made on the FIS (fixed income securities) portfolio and the one off provision booked for specific facilities in the first quarter,” the statement said.

“Excluding these, the bank’s core business performed commendably with a post tax profit growth of 16 percent underpinned by strong volume growth in loans and advances together with a reduction in impairment charges which somewhat offset the impact of narrowing NIMs.”

The statement said NTB’s credit growth was subdued during the first half of 2015, recovering only towards the latter part of the year as sentiment improved.

NTB’s loan book grew 23 percent to 121 billion rupees as at 31 December 2015 with deposits growing 16 percent to 129 billion rupees during the year.





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