NDB Bank’s core banking profits increased by 19% over the corresponding period last year. A commendable performance , despite the pressure on interest margins & the re-pricing effect on investments in the Government Securities portfolio. These  have  largely been offset by  the impressive growth in the Bank’s lending portfolio by 31% and the deposits mobilized by 23% during the 9 month period, which infact are  ahead of the industry growth rates . The marked to market loss of Rs 46 mn as compared with an income of Rs 301 mn last year on its quoted equity portfolio restricted  NDB Bank’s profit after Tax increase  to  32%.

The NDB Group’s Profit Attributable to shareholders during the nine months period of Rs 1.7 bn as compared with Rs 1.5 bn for the comparative period (a 13% increase), has been brought about by the strong growth in core banking profits of 19% and improved performance of the group companies, having absorbed  the marked to market equity losses of the Group amounting to Rs 100 mn during the current period, compared to the gain of Rs 532 mn made in the comparative period of 2010. 

Despite the significant growth in the Loan portfolio in all the sectors, NDB Bank contained  its Non Performing Loans (NPL) ratio to an all time low of 1.41% which is one of the lowest in the industry. The provision cover on NPLs was at 77.08% as at 30 September 2011 with an Open Loan Position of 2.07%, which signify minimum amount of stress on the Bank’s equity, on account of un-provided delinquencies.

The Group’s Tier 1 Capital Adequacy Ratio of 13.68% and a Tier 1 & 2 ratio of 15.42% are well in excess of the regulatory minimum of 5% and 10% respectively, providing ample capacity for the rapid expansion planned for the future.

With a healthy and well structured balance sheet, and an affirmed rating of “AA (lka)” by Fitch Ratings, NDB provides its stakeholders, the much desired comfort for their investment and future growth potential. 
 
NDB continued to   educate and enhance skills and build competencies within SMEs .
Livelihood Development programmes aimed at promoting Financial Inclusion continued to be an integral part of the Bank’s branch expansion. Beside the 2 batches that graduated in hotel management , the first batch of 22 youth from the North graduated in motor mechanism under  NDB “Jeewana” Programme. The bank’s branch network was expanded to 55 during the 9months period.

NDB Bank was presented the award for excellence in branding and marketing at the CMO Asia Awards held in Singapore recently. NDB Bank was the only Sri Lankan bank to be recognized at the CMO awards.

 Group performance

Today, NDB positions itself as the only Financial Services Group, with subsidiaries and associates in Investment banking, Stock Broking, and Wealth Management (which make up the Capital Markets cluster) and Insurance in addition to the strategic investment arm CDIC. The performance of the Capital Markets cluster has significantly improved due to increased level of activity in the capital markets particularly managing complex IPOs during this period, apart from a host of other Investment banking services it offers. Additionally, its investment banking arm in Bangladesh, NDB Capital has turned around in a difficult market and is reflecting its true potential. 

NDB Aviva Wealth Management is the largest fund management company in Sri Lanka with a portfolio in excess of Rs 50 bn. Private Wealth Management is the newest financial solution offered by NDB Aviva Wealth Management to clients who require services going beyond the typical banking needs. This service is not only limited to Sri Lankans but is extended to overseas investors with investment prospects. This further establishes the NDB Group as one of the fastest growing financial conglomerates.

NDB Group signed a landmark MOU with Singapore’s DBS Bank, the largest bank and financial services group in Singapore , during the quarter, to form a strategic alliance in Investment Banking. Through this MOU, NDB Group and DBS Bank intend to raise, place and syndicate, equity and fixed Income issuances and promote Mergers & Acquisitions not only in Sri Lanka but also in the region. “We are also exploring similar opportunities with other Banks in the region. Joint business alliances such as these will provide a trusted portal for the much needed Foreign Direct  Investments to Sri Lanka” commented Mr Hemaka Amarasuirya, Chairman NDB.

Mr Russell de Mel – CEO / NDB Bank commenting on the Group performance stated “NDB Group differentiates itself from its peers by providing its customers with an integrated value proposition in Banking and Financial Services.  We also possess one of the best knowledge bases within the Banking industry.  Hence our focus on knowledge based banking. NDB Group is well positioned to grow as a dominant force within the financial services sector”.