NTB ends 2018 with Rs 3.7 bn PAT | Daily News

NTB ends 2018 with Rs 3.7 bn PAT

Nations Trust Bank Group closed the year 2018 with a post-tax profit of Rs. 3,702 million, up by 10% over previous year in a difficult operating environment which witnessed increased non-performing loans, tightening of liquidity, moderation of credit growth and higher taxes and levies.

The Bank strategically steered its resources in consolidating of selective portfolios and managing impairment.

Net interest income increased by 27% mainly attributed to growth in volumes (up by 21%) and better management of NIMs, despite tight liquidity in the market exerting pressure on cost of deposits.

Expenses recorded a growth of 15% mainly due to expenses arising from ongoing investments for the future in areas of digital, infrastructure, training and development and brand visibility. The Group’s Cost:Income ratio continued to record consistent improvement, declining below 50% for the first time to record 47.81% in 2018 from 51.57% reported in the previous year.

Loan book growth was mainly driven by Corporate Banking (+46%) followed by Credit Cards (+25%) and Leasing (+20%). Growth in the Consumer and SME segments were relatively moderate at 15% and 11% respectively, reflecting stressed market conditions and the Bank’s efforts in consolidating these portfolios.

Deposits recorded a growth of 19% faster than the industry average of 15% with fixed deposits growing by 24% while CASA recording a subdued growth of 7%. Furthermore, the Bank continued to diversify its funding base by securing a USD 50 mn funding line from a DFI in August 2018.

The Group’s Tier 1 and overall Capital Adequacy Ratios strengthened to 12.15% and 15.59% by year end following the capital raised through a Rs 3.2 billion rights issue and a Rs 3.5 billion 5-year debenture issue in April 2018. The elevated capital ratios and capital buffers would afford a strong platform for future growth.

Commenting on the results and achievements, Renuka Fernando, CEO/Executive Director stated “Our performance for the year demonstrates our resilience during testing times and our ability to progress towards our medium term strategic goals. We have built a strong strategic foundation, an agile business model driven by a passionate team. It is with great optimism that we embrace the future as we look forward to building a new era in banking”.


 

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