NTB posts Rs 376 m profit in first quarter
Nations Trust Bank PLC announced that the Group closed the first
quarter of 2011 with pre-tax profits of Rs 684 mn, an increase of 29
percent over 2010 while post-tax profits aided by reduced taxation rates
grew by a much higher percentage of 76 percent from Rs 214 million in
2010 to Rs 376 mn.
Commenting on the results, Director and CEO Saliya Rajakaruna said
they have performed creditably during the quarter and managed to post
good growth in core revenue streams with reasonable returns and strong
balance sheet footing. "Having drawn up our strategic plan for the
medium term, we have embarked on an ambitious growth strategy for the
next three years.
We are convinced that new products, new market segments, new
geographies and new demographics will provide a lucrative landscape for
the growth of the bank," he said.
Group net interest income was contained at previous year levels
despite narrowing margins in the industry through growth in business
volumes, timely re-pricing of deposits and a shift in the deposit mix
towards low cost funds.
The focused approach to enhance non-funds based income resulted in a
substantial growth of 37 percent compared to the previous quarter.
The bank generated it's non-funds based income mainly from capital
market activities and from trade and credit card related business lines.
Trade finance volumes, both on imports and exports picked up
significantly compared to the previous year with the resultant income
increasing by 56 percent. Credit card non fund based income grew by 14
percent for the quarter as consumer spend increased.
Group operating expenses recorded an increase of 17 percent over 1Q
Loan loss provision for the quarter recorded a net write back of 39
million compared to a charge of 114 million in the previous year.