Nations Trust Bank group profit after tax grows 76% to Rs. 102m
In results released to the Colombo Stock Exchange Nations Trust Group
comprising the Nations Trust Bank and its fully owned subsidiaries
reported commendable performance for the three months ended March 31,
2007, continuing to maintain the excellent growth momentum recorded in
2006.
The Group Profit before Tax and after Tax were Rs. 174.079 Mn. and Rs.
102.031 Mn. for the first quarter of 2007 as against Rs. 99.759 Mn. and
Rs. 58.124 Mn. for the corresponding period of 2006, recording 74% and
76% increases.
The improvement in the profit of the Group for the quarter compared
to the corresponding period in 2006 was facilitated by an all round
improvement in performance compared to the corresponding period in 2006.
Net interest income increased from Rs. 377 Mn. to Rs. 475 Mn., an
increase of 26% mainly as a result of healthy growth recorded in
deposits and advances during the period under review. Deposits grew from
Rs. 20.937 Bn. as at December 31, 2006 to Rs. 23.986 Bn. as at March 31,
2007 while net loans and advances grew from Rs. 26.993 Bn. to Rs. 29.414
Bn.
Foreign Exchange income showed a tremendous increase while Other
Operating Income too recorded encouraging improvements during the
period.
Given the highly volatile conditions that were experienced towards
the latter part of the quarter in relation to the short term interest
rates in the market, the performance is really commendable, Zulfiqar
Zavahir, Director Chief Executive Officer said.
Reflecting on the improvements in the asset quality as evident from
the lower Non-performing Advances Ratio, the net charge to profits on
provisions for bad and doubtful debts decreased to Rs. 57.895 Mn. in
2007 from Rs. 79.841 Mn. in the first quarter of 2006.
The increase in the VAT on Financial Services and the income tax
liability corresponds to the increase in profits liable for the taxes,
Zavahir said.
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