NSB recorded a profit before tax of Rs.6.0 billion for the nine months ended 30th September 2014, up by 492 percent from Rs.1.0 billion recorded in the corresponding period last year, and the net profit recorded an increase of 679 percent to Rs.3.5 billion from Rs.445million recorded in the same period last year.
The Bank mobilized Rs.45 billion deposits during t he nine months period recording a growth of 7.5 percent. Savings deposits accounted for a large share in mobilization which is a significant improvement in deposit mix of the Bank. The deposit base of the Bank stood at Rs.539.9 billion as at 30th September, 2014.
Total assets grew by 11.5 percent to Rs. 729.4 billion as at 30th September 2014, the growth was mainly supported by the issuance of USD 250 million bond in early September. The 5-year bond was priced at 5.15 percent yield which was a significant milestone for the Bank, having achieved the lowest yield by a Sri Lankan issuer.
Loans and advances to customers recorded a growth of 11.7 percent compared to industry growth of 5 percent during the period. Held-toMaturity financial assets which mainly consist of Treasury Bonds, grew by 14.9 percent to reach Rs. 496.9 billion.Interest income increased by Rs.8.6 billion to Rs.54.6 billion recording a growth of 19 percent while interest expenses increased marginally by 1.2 percent to Rs.40.1 billion during the nine months period from Rs.39.7 billion recorded in the same period last year.
Higher growth of interest income and comparatively lower increase in interest cost contributed to increase net interest income by 128 percent to Rs.14.5 billion by end of September 2014 from Rs.6.4 billion recorded at the end of September 2013. This resulted in improving the net interest margin to 2.8 percent by the end of September 2014 from 1.6 percent recorded at the end of 2013.Return on average assets (before tax) improved to 1.1 percent at September 30, 2014 from 0.4 percent recorded at the end of 2013. Return on average equity rose to 19.5 percent by the end of September 2014 from 5.1 percent recorded at the end of 2013.The cost to income ratio favourably improved to 45.3 percent by the end of September 2014 from 66.7 percent recorded at the end of 2013 and the improvement was mainly due to the increase in net interest income.
The Bank’s capital strength was reflected in ratios that were well above the regulatory standards for well capitalized banks, with a Tier 1 ratio of 17.6 percent, and total capital adequacy ratio of 15.99 percent at September 30, 2014. Liquidity ratio of the Bank stood at 90.9 percent at September 30, 2014.
The Group’s post tax profit increased by 518 percent to Rs. 3.7 billion as at end September 2014 from Rs. 592 million recorded at the end of September 2013.
The Bank introduced “NSB Divi Surakum” pension plan catering to the financial needs of all senior citizens of the country and thereby ensuring a stable retired life by means of a pension which is imperative in furnishing better living standards for the nation.NSB Divi Surakum will be a helping hand and an immense relief to many generations in the country; from the Sri Lankan senior citizens who desired financial independence during their retirement to the young who wishes a secured retired life in their distant futurity.
Emphasizing on the rural economic development, the Bank introduced a “Loan Cluster” in September 2014 which comprised of loans for small and medium scale entrepreneurs and promotion of pawning. This programme has supported the “Financial inclusion” largely.