NTB gets off to a solid start to the year with Rs.32bn in new loans

Sherin Cader  – Chairperson	Hemantha Gunetilleke - CEO

Nations Trust Bank PLC saw some solid growth in new loans in the three months through March 2025, reflecting both the bank’s desire for lending as well as the new found appetite for fresh borrowings from the businesses and the individuals for money as the economy is forging ahead.

The bank saw its gross loans and advances book by Rs.31.52 billion or 10.2 percent in the three months to Rs. 340.38 billion.

The growth appears to have come from a broad set of segments.

“The bank’s performance for the three months ending March 31, 2025 showcases our continued growth and expansion across diverse customer segments”, said the bank’s Chief Executive Officer, Hemantha Gunetilleke.

“ Our solid capital position, strong liquidity buffers, effective risk management frameworks and steadfast commitment to service excellence and digital empowerment remain key drivers of success”, he added.

The bank’s Tier I and Tier II capital ratios stand at 19.39 percent and 20.56 percent respectively, well above the regulatory minimums of 8.5 percent and 12.5 percent.

The liquidity gauge, the liquidity coverage ratio is at 270 percent against the 100 percent required at the minimum level.

The bank also raised deposits worth of Rs.28.49 billion to Rs.413.28 billion.

The bank reported a net interest income of Rs. 9.28 billion for the January – March period, up 2.0 percent from the same period last year.

This was because the interest income slipping by 4.0 percent as opposed to the 12.0 percent increase in the corresponding interest expense.

The net interest margin narrowed slightly to 6.51 percent by the end of March from 6.94 percent at the end of last year due to declining interest rates.

The net fee and commission income too grew by 8.0 percent to Rs.2.05 billion in line with the growth in loans, particularly from the trade related ones and also from the digital banking activities.

Meanwhile the provisions made on possible loan losses or impairments fell by 20 percent to Rs.445.52 million.

The bank’s asset quality gauge, the Stage 3 loans ratio fell to 1.38 percent from 1.60 percent at the end of last year, reflecting improved asset quality.

The banking sector saw their asset quality improving recently due to rise in loans and also the improving debt serviceability of their borrowers in a growing economy.

In one highlight, the bank’s net other operating income turned to a loss of Rs.261.15 million from a gain of Rs.3.49 billion in the year earlier period.

Under this backdrop, the bank reported earnings of Rs.12.35 a share or Rs.4.08 billion for the three months compared to Rs.11.58 a share or Rs.3.78 billion a year ago.