Sri Lanka’s NDB Bank June quarter profits up 70-pct
ECONOMYNEXT – Profits at Sri Lanka’s NDB Bank grew 70 percent from a year earlier to 1.3 billion rupees on improving net interest income margins, interim accounts showed.
The bank reported earnings of 7.15 rupees in the quarter, interim accounts filed with the Colombo Stock Exchange showed.
A NDB Bank share last traded at 114 rupees.
In the six months to end June 2018 earnings per share was 13.64 rupees on profits of 2.4 billion rupees, up 63 percent from a year earlier as net interest income rose 41 percent to 6.9 billion rupees.
In the June quarter, interest income grew 14.2 percent from a year earlier to 9.2 billion rupees, interest expenses rising 4.3 percent to 7 billion rupees saw net interest income expand 41 percent 3.5 billion rupees.
Net fee and commission income increased 17.3 percent in the quarter to 947 million rupees.
Bad loans provisioning grew 17.7 percent to 507.7 million rupees.
Personnel expenses were up 39 percent to 1.2 billion rupees and other costs rose 7.6 percent to 895 million rupees.
NDB Bank’s loan book expanded 10 percent from end December 2017 to 301.5 billion rupees at end June 2018, and deposits grew 9 percent to 296.8 billion rupees.
Non-performing loans were 1.7 percent of total loans, up from 0.94 percent in the December 2017 quarter.
Tier I capital adequacy was at 9.85 percent at end June 2018, above the 7.875 percent regulatory minimum, but lower than 10.49 percent six months earlier.
Total capital adequacy was 13.87 percent end June down from 15.18 percent six months earlier, but above the regulatory minimum of 11.875 percent.
The Board of Directors have proposed to raise 6.2 billion rupees from a rights issue to strengthen regulatory capital requirements. The rights issue is subject to regulatory approval, the bank said. (COLOMBO, 30 July 2018)