NDB Bank's operating profit up 28% to Rs. 492 million

NDB Bank's operating profit before provisions for the first quarter of 2007 was Rs. 492 Mn compared to Rs. 385 Mn for the corresponding period last year, an increase of 28%, which was achieved in a volatile interest rate environment.

Provisions for doubtful debts was a release in this quarter, due to the effective management of the credit portfolio and process. The profit before tax increased by a lesser percentage of 8% from Rs. 483 Mn to Rs. 523 Mn.

The Core banking performance reflected the continuing progress made by the Bank in implementing new business strategies after the merger between the National Development Bank Ltd., and NDB Bank Ltd on August 1, 2005.

The Group's profit before tax for the period was Rs. 660 Mn compared to Rs. 632 Mn for the corresponding period last year excluding the exceptional capital gain of Rs. 1.01 Bn generated in the first quarter of 2006 on the sale of the controlling interest in Eagle Insurance Company Ltd.

The Group's profit attributable to shareholders was Rs. 300 Mn compared to Rs. 314 Mn excluding the exceptional capital gain. Shareholders' Funds as at March 31, 2007 amounted to Rs. 8.78 Bn and Rs. 10.86 Bn 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 14.89 % and 21.00 % compared to the regulatory minimum of 10%.