NDB Bank's nine months performance shows strong growth

NDB group's profit before tax, including an exceptional capital gain generated in the first quarter 2006 increased significantly from Rs. 1,348 million for the nine months ended September 30, 2005 to Rs. 2,903 million for the nine months ended September 30, 2006.

Excluding the exceptional capital gain the profit before tax increased by Rs. 215 million to Rs. 1,563 million. The profit attributable to shareholders was Rs. 1,716 million as compared with Rs. 760 million for the corresponding period.

Shareholders' Funds as at September 30, 2006 amounted to Rs. 8.28 billion and Rs. 9.80 billion for the Bank and the Group, which are well in excess of the regulatory minimum standards. The Tier 1 and Tier 2 capital for the Bank and the Group amounted to 15.17 % and 19.56 % compared with the regulatory minimum of 10%.

Fitch Ratings Lanka Ltd reaffirmed the "AA" credit rating of NDB Bank after the take over of the assets and liabilities of NDB Housing Bank Limited on September 1, 2006. This reflects the Bank's strong financial profile, capital position and sound asset quality, including one of the lowest non-performing asset ratio in Sri Lanka.

The Bank took over the assets and liabilities of its subsidiary NDB Bank Ltd on August 1, 2005 and started its commercial banking operations from that date. For the purpose of comparison of the Bank's performance with the comparative period last year, the results of both banks in 2005 have been merged together.