The Sunday Leader

Shareholder Profit Up 30%

NDB Group C.E.O. Eran Wickramaratne

Profit attributable to NDB Group shareholders increased by 30% over the previous year, vis-à-vis the financial year ended December 31, 2009.
Profit before tax (p.b.t.) and profit after tax (p.a.t.) also increased by 37% and 24% respectively over the last year. This exceptional performance for the year was mainly due to the significant profits earned from the banking segment of the NDB Group.
NDB Bank’s (NDB’s) P.b.t. and p.a.t. increased by 48% and 41% respectively over the previous year. The financial conglomerate’s continuous excellent performance further substantiates NDB Group’s stability in a volatile global and local economic environment.
NDB’s core banking revenue (net interest income, fee and forex income) grew by 30% over the corresponding period last year. The Bank’s core banking income includes Rs.733 m of gains from government securities’ trading portfolio of for the year as compared with a loss of Rs. 1 m last year.
NDB ’s net interest income (N.I.I.) grew significantly by 18% over the corresponding period last year. The lending portfolio declined marginally by 1% over the last year end, whilst customer deposits grew significantly by 57% from Rs 31.9 b as at December 31,  2008 to Rs 50.0 b as at December 31.  2009.
This exceptional increase in customer deposits over the previous year compares well with 18.5% industry growth in 2009.
NDB remains the most well-capitalised bank among local banks with a Tier 1 Capital Adequacy Ratio of 14.65% and a Tier 1 & 2 ratio of 17.03% and is well in excess of the regulatory 10% minimum.
The Bank’s stringent policies in maintaining the quality of its loan book resulted in the ratio of Non Performing Loans (N.P.L.s) to gross lending portfolio increasing to only 2.58% as at December 31, 2009 as compared to 2.30% as at December 31, 2008. It should be noted that NDB’s N.P.L. ratio remains one of the lowest in the local banking industry and compares well with the industry N.P.L. ratio of 8.0% as at  December 31, 2009.
The Bank adopted effective cost containment methods which resulted in overheads increasing only by 9% over last year. The Bank’s cost to income ratio of 39%, is one of the lowest amongst local banks and compares well with the 2009 industry ratio of 53%.

NDB’s Fitch Credit rating of AA (lka), is amongst the best in the industry and reflects NDB’s “strong” financial profile in terms of its capital base, profitability and asset quality. NDB Group continues to focus on its business strategy, which is to grow in corporate, retail, emerging corporates (S.M.E.), project finance, specialized commercial markets, investment banking, stock brokering and insurance areas.
NDB expanded its branch network to Jaffna, Batticaloa, Trincomalee, and Ampara in 2009 third quarter and with the opening of Vauniya branch recently, total branch network increased up to 45.  The Bank offers communities in the Northern and Eastern Provinces a wide ranging portfolio of financial solutions in retail banking, corporate banking and SME, whilst maintaining the “highest standards of service and quality.”
With the cessation of the three-decade military conflict, the nation now looks upon rebuilding a robust and sustainable economy.  Communities across the North and East now have a rare opportunity to rebuild lives, reconstruct their homes, sustain a livelihood, pursue their education and build a better future.  NDB is proud to be a part of the reawakening of the nation’s Northern and Eastern Provinces by providing support to establish and promote entrepreneurial skills; offering them the Bank’s broader spectrum of financial products and services.
NDB Group expanded its business operations in the region in early 2009 by acquiring a controlling interest of 77.8% in an investment banking operation in Bangladesh, NDB Capital Ltd.

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