Sri Lanka’s NDB net up 24-pct in September quarter before windfall tax

ECONOMYNEXT – Net Profits at Sri Lanka’s NDB Bank grew 24 percent to 1.8 billion rupees in the September 2021 quarter from a year earlier, helped by net interest and fee income growth despite higher loan loss provisions, interim accounts showed.

NDB Bank reported earnings of 7.08 rupees per share for the quarter. In the nine months to September the bank reported earnings of 6.78 rupees on total profits of 5.9 billion rupees which grew 54 percent.

On Monday (15) the share was trading 0.13 percent lower at 75 rupees.

Net interest income grew 14.7 percent to 5.6 billion rupees in the quarter, with interest income down 2.4 percent to 13.2 billion rupees, interest expenses falling at a faster 11.9 percent to 7.7 billion rupees.

“At a Group level, NDB managed its profitability despite the challenges, benefiting from a combination of sources such as enhanced banking revenue, effective cost management and profit contribution from

NDB capital market cluster companies” the bank said in its interim accounts.

Loans grew 15 percent to 509 billion rupees from December to September.

NDB Bank provided 2.5 billion rupees for bad loans, up from 1.6 billion rupees a year ago.

Non-performing loans were 5.46 percent by September, up from 5.35 percent from a year ago.

Fee income grew to 1.8 billion rupees from 1.5 billion.

NDB provided 635 million rupees for income tax. The budget for 2022 said a 25 percent windfall tax called a 25 surcharge will be applied retrospectively for this year.

Total assets were up 8 percent to 684 billion rupees.

Net assets were up 29 percent to 61.8 billion rupees.

Tier I capital was at 9.63 percent, up from 9.17 percent at bank level (10.03 at group) lower than the 12.5 percent required.

Total capital adequacy was at 13.63 percent, up from 14.32 percent (group 13.93up from 14.75 percent) (Colombo/November 15/2021).

 

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