Sri Lanka’s NDB net up 74.4-pct in December
ECONOMYNEXT – Sri Lanka’s National Development Bank Plc (NDB) net profits in the December quarter grew 74.4 percent to 1.7 billion rupees from a year earlier with higher interest income, the firm said.
NDB’s earnings per share for the quarter were 9.21 rupees, the bank said in its interim financial report. The firm’s share closed 30 cents lower at 104.70 rupees on Monday.
For the year 2018, NDB’s earnings per share was 28.67 rupees, with net profits growing 51 percent to 5.3 billion rupees from 2017.
The bank said its profitability was at the highest level in its 40-year history.
Interest income for the December quarter were 12.6 billion rupees, up 27.5 percent from a year earlier, while interest expenses were up 24.4 percent to 8.4 billion rupees and net interest income was up 34 percent to 4.3 billion rupees.
Other operating income grew 317 percent to 836.6 million rupees.
Individla impairment against bad loans grew 384.5 percent to 1.1 billion rupees.
The bank said this was due to precautionary provisions made for some loans under a new futuristic model mandated in new accounting standards, compared to the earlier incurred loss model.
NDB’s loan book as at December 31, 2018 was 344.6 billion rupees, up 26 percent from a year earlier.
Bad loans grew to 2.85 percent from 1.83 percent. NDB said this was lower than the industry average of 3.4 percent for 2018.
Deposits grew 27 percent to 347.2 billion rupees.
NDB’s net assets per share were 185.63 rupees, down 4 percent from a year earlier. Total assets grew 23 percent from a year earlier to 478.5 billion rupees.
The bank’s tier 1 capital ratio was 10.44 percent in 2018, down from 10.49 percent in 2017, against a regulatory requirement of 7.875 percent.
Total capital ratio fell to 13.67 percent from 15.18 percent a year earlier, with a regulatory minimum of 11.875 percent. (Colombo/Feb11/2019-SB)