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Sri Lanka’s NDB Bank net up 31-pct in Sept 2020

ECONOMYNEXT – Profits at Sri Lanka’s NDB Banknet profits grew 31 percent to 1.5 billion rupees in the September 2020 quarter from a year earlier, helped by trading gains, and lower taxes despite higher loss provisions, interim accounts showed.

NDB Bank reported earnings of 6.78 rupees per share for the quarter. In the nine months to Septemberthe bank reported earnings of 16.63 rupees on total profits of 3.8 billion rupees which grew 32 percent.

Net interest income grew 8.5 percent to 4.8 billion rupees in the quarter, with interest income up 0.55 percent to 13.5 billion rupees, interest expenses down 3.4 percent to 8.7 billion rupees.

About 30 percent of loan book of the banks was in moratorium, the bank said.

Loans grew 7 percent to 425 billion rupees from December to September in one of the strongest rates seen among listed banks.

The bank provided 1.6 billion rupees a loss provisions in the September quarter up from 1.0 billion rupees a year earlier.

“The increase in the impairment charges continued to be caused by the increase in the collective provision charge in line with the growth in the loan book and provisions made
at individual levels in response to elevated risks caused by the pandemic and other stresses,” the bank said

“The Bank also accounted for the day 01 impact on the moratoriums where significant interest
concessions were given amounting to LKR 583 Mn, under other impairment charges, as
prescribed by SLFRS 09: Financial Instruments.”

Non-performing loan ratio went up to 5.57 percent percent in September from 4.77 percent in December 2019.

Financial assets which are market to market went up from 27 to 44 billion rupees and long term financial assets went up to 92 billion rupees from 68 billion rupees.

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The Bank realized capital gains from Government Securities portfolio, as reflected under net gains from derecognition of financial assets.

Fee income went up by 24 percent to 1.5 billion rupees from 1.2 billion rupees

Gross assets were up 13 percent to 605 billion rupees. Customer deposits grew 15 percent to 463 billion rupees.

Net assets were up 8 percent to 47.8 billion rupees.

Tier I capital was at 9.2 percent, up from 9.18 percent at bank level (9.77 at group) higher than the 8.0 percent required.

Total capital adequacy was at 14.21 percent, up from 13.43 percent (group 14.62 up from 14.20 percent) (Colombo/Nov 13/2020).

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