Upgraded to A(lka): Nations Trust Bank makes excellent progress
Nations Trust Bank has made excellent progress in the first six
months, having achieved a Group Operating Profit before Tax of Rs. 279.7
million for the half year ended June 30, 2006.
On a combined entity basis (with the merger of Mercantile Leasing
Limited (MLL) on January 1, 2006), Group Operating Profit before Tax
showed an increase of 73%. These exceptional results were seen on the
back of an all round improvement with strong growth in Deposits and
Advances, a pleasing increase in Fees and Commissions and while
maintaining good control of Non-Performing loans, Provisions and
Group Profit after Tax was Rs. 132.9 million with the effective tax
rate increasing from 41% to 52.5% due to the increased Financial
Services VAT of 20% and a higher Income Tax rate of 35% in 2006.
The combination of the good performance and the increase in Capital
(resulting from the merger with MLL) has led to the upgrading of the
Bank's rating to A(lka) from A-(lka), by Fitch Ratings Sri Lanka. A(lka)
National ratings denote a strong credit risk relative to other issues or
issues in the same country.
Chief Executive Officer Zulfiqar Zavahir said, "The performance is
indeed gratifying, with all the business units contributing strongly and
making their presence felt in the market. We have significantly grown
our customer numbers and volumes while continuing to be extremely
focused on service delivery. We are confident that the momentum will be
maintained and look forward to a superior performance in the second half
of 2006, as well."