Sri Lanka’s Nations Trust Bank net up 49-pct in Dec quarter

ECONOMYNEXT – Profits at Lanka’s Nations Trust Bank rose 49 percent to 1.1 billion rupees in broadbased gains in stable fund and fee based income and lower loan loss provision couple with cost management, interim accounts showed.

Nations Trust Bank reported earnings of 4.13 rupees for quarter. In the year to December, NTB reported earnings of 13.08 rupees per share on total profits of 3.7 billion rupees, which was flat.

The stock closed at 74.50 rupees on Thursday unchanged.

“Despite the headwinds present in the operating environment, our fourth quarter witnessed an
improved performance over the previous quarters of 2019, which is encouraging,” Chief Executive Renuka Fernando told shareholders.

Interest income fell 5 percent to 9.58 billion rupees in the quarter, and interest expense fell at a faster 11 percent to 5.3 billion rupees, and the bank grew net interest income 2 percent to 4.2 billion rupees.

For the full year loans grew 2 percent to 226 billion rupees. Gross non-performing loans rose to 6.17 percent from 4.58 percent.

Loan loss provisions were down 21 percent to 805 million rupees in quarter.

“Given rising impairments during the year, credit risk management was a key area of focus; we
sought to strengthen pre-credit sanctions and collections, post-credit monitoring through ongoing assessment of early warning signals as well as provide ongoing employee training on credit appraisals and risk management,” the bank said.

“Increase in impairment charge was curtailed to 0.8 percent during the year, attesting to the huge emphasis placed on underwriting and recoveries.

“Cross functional teams heading various initiatives on cost management, productivity and efficiency improvements resulted in minimizing increases in some large cost pools contributing to the overall management of the Bank bottom line.”

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In the quarter, operating expenses grew 1 percent to 2.87 billion rupees.

Group gross assets were flat at 325 billion rupees.Net assets were up 16 percent to 31.3 billion rupees.

At standalone bank level total capital adequacy grew to 17.6 percent by December 2019, from 15.4 percent in January. (Colombo/Feb28/2020)

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