NSB nine-month pre-tax profit up 31% to Rs.9.1bn
19 November 2015 01:37 am
National Savings Bank (NSB) reported a profit-before tax of Rs.9.1 billion for the nine months ended September 30, 2015, an impressive growth of 31 percent compared to the same period last year. The profitability for the nine-month period was mainly fuelled by the growth in the traditional lines of business.
The net interest income of the bank increased to Rs.20.6 billion which is an increase of 38 percent compared to the corresponding period of last year. As the interest income of the bank grew by 7 percent to reach Rs.58.4 billion, while the interest expenses recorded a decrease of 5 percent - mainly due to re-pricing impact of fixed deposits and increase in normal savings base during the period under review. The profit-after tax was reported at Rs.5.6 billion for the nine months ended September 30. These profits were recorded amidst the personal cost reflecting a revision of salaries as per the three-year collective agreement and prudent provisioning for adverse impact in declining gold market prices.
The bank’s loans and advances grew by 20.1 percent during this period with retail lending portfolio recording a growth of 12 percent while corporate lending increase was 37 percent. The total assets of the bank stood at Rs.818 billion indicating a growth of 5 percent.
During the period under review, the total deposit base of the bank grew by 5 percent to reach Rs.580 billion while the normal savings recorded an impressive growth of 14 percent to reach a deposit base of 162 billion.
The bank’s Tier I capital adequacy ratio stood at 17.2 percent while the total capital adequacy for the period under review was at 15.8 percent.
The public awareness raising programme, which was commenced as a main corporate social responsibility (CSR) project during the month of October under the theme, ‘No Tobacco and No Alcohol’ can be stated as one of the most successful events organised by the bank in commemoration of this year’s World Thrift Day.
The bank is planning to implement some key critical initiatives in the coming months to further boost its growth momentum.
The bank has AAA long-term credit rating from Fitch Ratings Lanka Ltd for the 13th consecutive year.