NDB posts strong profitability in 1H, PBT crosses Rs. 6.5 bn
National Development Bank PLC for the six months ended June 30, 2024 has posted a pre-tax profit of Rs. 6.5 billion for the period with an impressive growth of 58%, predominantly driven by healthy net interest income.
NDB’s Director/ Chief Executive Officer Kelum Edirisinghe attributed the performance to the Bank’s current mid-term strategy, delivered by the dedicated NDB team. The Bank recorded a total banking revenue of Rs. 22.9 billion for the period under review, a solid growth of 24% over the comparative period in 2023 (YoY). Net interest income posted a healthy 10% growth to Rs. 16.5 billion, commendable in the low interest rate environment that prevailed through the period. The decline in the Bank’s interest income was more than offset by the reduction in interest expenses, on account of faster repricing of the deposits book.
Net fee and commission income for the period was Rs. 3.4 billion which normalised over a relatively high base in 2023, as reflected in an 8% YoY decline. Other non-fund based income categories all performed well netting a gain of Rs. 3.9 billion, save and except for those classified as Other Operating Income, which recorded a loss of Rs. 779 million on foreign revaluation reserves – attributable to the appreciation of the Sri Lankan Rupee. Impairment charges for the period were Rs. 8.4 billion, a YoY increase of 7% versus the comparative period. Taxes netted Rs. 3.3 billion, with a resultant post tax profitability of Rs. 3.2 billion, which was a notable YoY growth of 37%. The Bank’s balance sheet, resilient and well diversified closed in at Rs. 764 billion as at end June 2024. Within total assets, gross loans to customers grew by 2% over the end 2023 position (YTD) to Rs. 505 billion, reversing the negative growth trend experienced over the last five quarters.
Customer deposits followed a similar trend growing, although at a marginal 1% to Rs. 619 Bn. Rupee deposit base grew by 4% YTD with marked improvement in current and savings deposits, benefitting CASA. Foreign currency deposits declined by 8% YTD predominantly attributable to exchange rate appreciation. The Bank remains committed to driving sustained bottom line performance and enhancing shareholder value.
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