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NDB Bank recorded a net income of Rs. 596 million with net interest income contributing 44 per cent in its first full year of operation ended December 31, 2002, the bank said yesterday.

The bank's other income, includes commission on banking transactions and foreign exchange income, making up the balance 56 per cent. Profit after tax was Rs. 90.9 million, representing a Return on Equity of 12.5 per cent, the bank said.

NDB Bank acquired the Sri Lanka branch of ABN AMRO Bank NV, and began operations in October 2001.

The acquisition was sponsored by the National Development Bank of Sri Lanka (NDB), with the objective of moving towards the consolidation of the business of NDB and NBL, to create a universal bank, offering a wide range of financial products including project finance and commercial banking.

Having inherited a strong client base and an experienced staff, the Bank made a successful transition from its previous status as an international bank, to become part of the NDB Group. The shares of NBL were listed on the Colombo Stock Exchange (CSE) in July 2002 at Rs. 10 per share, and trades at a premium, ending the year at Rs. 14.75 per share. While NBL's activities were constrained by its small capital base during the past year, the Bank concentrated on growing its strong corporate banking portfolio and on developing its new consumer banking business, to create a springboard for growth, once the consolidation occurs.

As at December 31, 2002, its credit portfolio stood at Rs. 6.9 billion, compared with a portfolio of 5.3 billion, at the time of takeover. The bank also made significant investments in technology, in order to improve its electronic processing system, and implement technology-driven distribution channels to enhance its customer service.

The Bank obtained the services of iFlex Solutions of India to implement its Flexcube software, one of the best-selling banking solutions packages on the international market.

NDB Bank is also using the latest technology for its Touch Screen ATMS, which are driven by web-based software. The branch network is supported by a Banking-by-Phone service that enables personal banking customers to effect a wide range of transactions on the telephone.

During the second quarter of the year, NDB Bank launched its Privilege Banking service, for High net worth personal banking customers, with the unveiling of its Privilege Floor, and a host of exclusive services. The specialised product is built around a relationship management approach.

CEO, Eran Wickramaratne said that NBL's competitive edge is its ability to provide superior service levels, and we will continue to focus on continuous improvement in this area, while we work towards the proposed merger between NDB and NBL in the year ahead.

"We are excited about the opportunities that the merger will bring, including much needed capital, and the customer base of NDB, as we now have the necessary foundations in place to expand our activities to serve a broader customer base", he said.

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Copyright 2001 The Associated Newspapers of Ceylon Ltd.
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