Editorial

Security

Politics

World

Letters

Sports

Obituaries

Archives

Nations Trust Bank, with its fully owned subsidiary, Waldock Mackenzie Limited, had another successful year in 2005, nearly tripling earnings per share during the year under review.

The Group recorded a profit after Tax of Rs. 124.7 million for the year; a growth of 174% from 2004 earnings of Rs. 45.5 million. Group Operating Profit Before Tax was Rs. 265.2 million, an increase of 72% from Rs. 154.3 million in 2004.

The effective tax rate was at a high 53%, reflecting the higher tax rates that the Banking industry has been burdened with. Tax paid, inclusive of Financial services VAT amounted to Rs. 140.5 million, an increase of 60% after adjusting for retrospective tax in 2004.

The Chairman, Ajit Gunewardene in the Annual Report, has commented quite strongly on the possible adverse impacts that continuing high effective tax rates can have on an industry, which is very Capital intensive.

Saying that the Effective Tax Rate paid by Banks is higher than all other sectors of the economy, he warns that this will prove an impediment in attracting Capital investment, if the high tax rates continue to persist.

Chief Executive Officer Zulfiqar Zavahir, in his report says: "Our commitment to planned, structured growth continues into 2006 and beyond. Our enhanced brand image, relatively clean portfolio, proven winning strategy and an enthusiastic staff who believe that they can achieve anything that they set their mind to, will continue to improve the Bank's stability and strength and deliver superior shareholder value in the years to come."

| News | Business | Features | Editorial | Security |
| Politics | World | Letters | Sports | Obituaries | Junior Observer |

Produced by Lake House
Copyright 2001 The Associated Newspapers of Ceylon Ltd.