Post-tax profits of the National Development Bank PLC (NDB), Sri Lanka's fourth largest listed bank, rose by 32 percent to Rs. 3.9 billion in the first half of 2021 compared to the same period in 2020, growing amidst tight market conditions owing to the coronavirus.
NDB said in a media release that operating profit before all taxes for the period was Rs. 6.1 billion, up by 21 percent YoY while total taxes for the period was Rs. 2.2 billion. Profit attributable to shareholders increased by 73 percent to Rs. 4.1 billion.
The statement said that the bank continued to demonstrate its resilience to external shocks and ability to deliver consistent results during the first half of the year, noting that the review period was marked by month-long travel restrictions imposed to curb the spread of the third wave of the pandemic in Sri Lanka, which affected business momentum.
NDB's Director and Group CEO Dimantha Seneviratne noted that notwithstanding these deepening challenges, the bank was able to ‘deliver’ uncompromised value to all its stakeholders, thanks to its agile strategies and committed team.
“The banking sector has always played a crucial role in national economic development, and its importance is more pronounced in a situation like this. With the nation-wide vaccination programme successfully rolling out there is expectancy of expedited return to economic normalcy. In such a backdrop, NDB has affirmed its focus in safeguarding the interest of three critical stakeholders, i.e. the customers, the employees and the society at large,” he said.
NDB recorded a total operating income of Rs. 15.4 billion, up by 19 percent over the 6- month period in 2020.
Total assets of the bank for H1 2021 was Rs. 664 billion, up by 6 percent over 2020. On YoY terms this was a growth of 18 percent, the statement said. Loan book growth was broad-based, to Rs. 487 billion, a year-to-date growth of 10 percent.
The bank said its deposits base crossed the Rs. 500 billion mark for the first time with deposits closing in at Rs. 515 billion.
The statement said that the period under review saw a total capital infusion of Rs. 9.46 billion, comprising Rs. 8 billion raised through the Rights Issue and Rs. 1.46 billion, raised through the private placement with Norfund - the Norwegian Investment Fund for developing countries, strengthening Tier I equity capital of the Bank. NDB also secured US$75 million from the US-based Development Finance Corporation as a long term funding line towards lending to SMEs and infrastructure development of the country.