NSB’s 9-month pre-tax profit up 31% to Rs. 9.1 b

Savings giant NSB yesterday reported a profit before tax of Rs. 9.1 billion for the nine months ended 30September and impressive growth of 31% as compared to same period last year.

“The profitability for nine month period was mainly fuelled by the growth in traditional lines of business, ” NSB said in a statement.
The net interest income of the bank increased to Rs. 20.6 billion,which is an increase of 38% as compared to corresponding period of last year. As the interest income of the bank grew by 7% to reach Rs. 58.4 billion, while interest expenses recorded a decrease of 5% mainly due to re-pricing impact of fixed deposits and increase in normal savings base during the period under review.

The profit after tax was reported at Rs. 5.6billion for the nine months ended 30September. These profits were recorded amidst the personal cost reflecting a revision of salaries as per the three-year collective agreement and prudent provisioning for adverse impact in declining gold market prices.

The bank’s loans and advances grew by 20.1% during this period with retail lending portfolio recording a growth of 12% while corporate lending increase was 37%. The total assets of the bank stood at Rs. 818 billion, indicating a growth of 5%.

During the period under review, total deposit base of the bank grew by 5% to reach Rs. 580 billion while normal savings recorded an impressive growth of 14% to reach deposit base of 162 billion.

The bank’s tier 1 capital adequacy ratio stood at 17.2% while total capital adequacy for the period under review was at 15.8%.

The public awareness raising programwhich was commenced as a main CSR project during the month of October under the theme ‘No Tobacco and No Alcohol’ can be stated as one of the most successful events organised by the bank in commemoration of this year’s World Thrift Day.

The bank is planning to implement some key critical initiatives in the coming months to further boost its growth momentum.
The bank has AAA long-term credit rating from Fitch Ratings Lanka Ltd. for the 13th consecutive year.