NSB ups pre-tax profit by 24% to a record Rs. 13b

Savings giant NSB has boosted its profit before tax for 2015 by 24% to a record Rs. 13 billion, whilst achieving healthy growth in deposit mobilisation.

The bank also recorded a 26.2% rise in profit after tax to reach Rs. 8.7 billion for the year ended 31 December 2015. The bank reported an interest income of Rs. 78.1 billion whilst interest expenses marginally decreased by 2.8%. As a result the net interest income rose to Rs. 27.0 billion. NSB’s total deposit base grew by 7.5% to reach Rs. 595.8 billion while ordinary savings recorded an impressive growth of 15.4% reaching Rs. 163.4 billion.

“I am delighted to be associated with the bank in this momentous year of growth, ” NSB Chairman Aswin De Silva said. “The achievement is significant as it is attributed largely to an organic growth representing core business areas. As we forge ahead towards building a financial resilience in Sri Lanka, we are bolstered by trust and confidence placed in us by all our stakeholders.”

De Silva added: “Sustainability of this growth momentum is a key focus area for the bank. To this end the bank would embark on several new initiatives in 2016 and beyond to complement its core areas of activity.”

The bank’s growth in profitability in 2015 has been attributed to five key factors: growth in co-business signifying a 26% increase in net interest income, improvement in asset quality through the reduction of the bank’s non-performing loans ratio from 7.6% in 2014 to 3.5%, increased business volume through a clearer focus on under penetrated business areas such as inward foreign currency remittances, enhanced efficiency and productivity through a well-managed operating cost structure and wider reach and accessibility through an improved relationship with the national postal network, particularly within rural Sri Lanka.

“We are privileged to have contributed Rs. 11 billion to the Government by way of taxes, fees and dividend during 2015,” said NSB General Manager/CEO S.D.N Perera. “In my view, the strategic and operational action plan will assist continuity of growth and meeting targets,” he added.

NSB’s loans and advances grew by 22%, its retail lending portfolio increased by 16% and corporate lending by 29%. The total assets of the bank stood at Rs. 848 billion indicating a growth of 9%. NSB’s Tier 1 capital adequacy ratio stood at 17.8%, while total capital adequacy for the reviewed period was at 16.3% which were well above the minimum regulatory requirements.

The bank added nine new branches in 2015 increasing its total branch network to 245. NSB has always been the safest place to bank – it was the first local bank to receive AAA credit rating from Fitch Ratings Lanka Ltd.. The rating has been consistently reaffirmed for the past 13 years.

source: Sri Lanka Financial Times