Deposit base of the Bank surpassed Rs.600 billion by end of March 2016 supported by the growth of both savings and fixed deposits.
The Bank also witnessed a positive change in deposit mobilization mix during the first three months of the year. The total mobilization for the period was Rs. 20,265 million which consisted of Rs. 7,518 million in savings deposits. The total assets of the Bank increased over Rs.850 billion during the first quarter (1Q) of 2016.
During the period under review the Bank focused on improving the asset quality of the credit portfolio with the resultant improvement in NPL ratio. NPL ratio of the Bank has improved to 2.3 percent by the end of March 2016 when compared to 7.2 percent NPL ratio reported in the corresponding period last year, a significant achievement to further strengthen the financial health of
Mark to market losses of both equity and government security trading portfolios increased to Rs. 1,167 million when compared to a loss of Rs.450 million recorded in the corresponding period last year. Reasoning for these increased losses were the bearish trend experienced in the stock market and the rising market interest rates. Despite these market challenges, the Bank recorded a Profit before Tax (PBT) of Rs.3,095 million compared to Rs.2,980 million reported in the same period last year. Profit after Tax (PAT) reached Rs. 2,350 million compared to Rs. 1,840 million reported during the corresponding period last year.
Net Interest Margin declined marginally to 3.12 percent in 1Q 2016 from 3.32 percent recorded at the end of 2015 due, to relatively higher interest cost. Return on Average Assets (before tax) declined to 1.45 percent as at 31st March 2016 from 1.60 percent recorded as at 31st December 2015.
During the first three months of the year retail lending portfolio of the Bank has recorded a growth of 4 percent with personal loans reporting a growth of 22 percent. Although the Pawning Portfolio continued with its negative growth the overall lending portfolio of the Bank reported a 3.6 percent growth in 1Q 2016.
The Bank’s Tier 1 capital adequacy ratio stood at 17.09 percent while the total capital adequacy for the reviewed quarter was 16.08 percent. These ratios however, remain well above the regulatory standards for well capitalized banks. Liquidity ratio of the Bank stood at 78.74m percent by the end of March 2016, which is well above the regulatory requirement of 20 percent.
In view of improving financial and social inclusion of the people in remote areas, the Bank added three new branches at Uhana, Udugama, Siyambalanduwa increasing the total Branch network of the Bank to 248 branches as at 31st March, 2016.
NSB has been rated as 3rd most valuable brand in 2016 by Brand Finance Lanka, a steady increase from 8th place in 2013. This stands testimony to the increased stakeholder trust and confidence.